Greencrest Financial Services Limited

Financial Services — Capital Markets · BSE

₹0.59−₹0.01 (−1.67%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of Greencrest Financial Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Greencrest Financial Services Limited, a non-banking financial company, engages in finance and investment businesses in India.

IndustryCapital Markets

SectorFinancial Services

Employees9

Annual revenue₹31 Cr

How does it make money?

Turns over ₹31 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹3.43 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.43 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.7%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +52% while net margin moved -29% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+52%

Margin effect-29%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 2.4% is weak

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

62/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

19.7x

3Y Median

22.3x

40 monthly readings · mean 24.1x · range 13.0x–40.7x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 12% below its 3y median of 22.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 66% below the peer median of 58.4x.

vs. its own history

Fair

22.3x median over 40 months · -12%

vs. sector peers

Cheap

58.4x median of 3 peers · -66%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.7x

PEG

8.14

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 14.7% to 22.4% over 3 years.
Return on capital is rising
ROCE has improved from 5.6% to 9.3%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 541% against revenue growth of 52% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 14.7% to 22.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 66% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 11% a year✓ 15.0% CAGR
Latest reported year was 21.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 22.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 2.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 22.3x✓ 19.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹22 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.7x

Fair

Fairly valued against the generic band

P/B Ratio

0.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.03

Profitable

Profitable on a per-share basis

ROE

2.4%

Weak

Weak capital efficiency

ROCE

9.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.90x

Moderate

Moderate leverage

Revenue Growth (YoY)

21.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-33.3%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

19.7%

Good

Healthy core-business profitability

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

1.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.21

Defensive

Steadier than the market

52W Range Position

50%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

0.6 / 0.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

43.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹34 Cr	₹66 Cr	₹31 Cr	+15.0%
EBITDA	₹3 Cr	₹5 Cr	₹5 Cr	₹7 Cr	+32.3%
EBITDA Margin	14.7%	15.7%	7.8%	22.4%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+2.4%
EPS	₹0.03	₹0.03	₹0.03	₹0.04	+10.1%
ROE	2.4%	2.0%	2.2%	2.4%	—
ROCE	5.6%	4.0%	4.7%	9.3%	—
Total Debt	₹25 Cr	₹35 Cr	₹45 Cr	₹53 Cr	+28.5%
Free Cash Flow	-₹3 Cr	₹4 Cr	-₹7 Cr	₹1 Cr	—

🟢 Revenue has grown at 15.0% a year over 3 years.

🟢 EBITDA has grown at 32.3% a year over 3 years.

🟢 EBITDA Margin has risen from 14.7% to 22.4% over 3 years (+7.7 pts).

🟢 PAT (Net Profit) has grown at 2.4% a year over 3 years.

🟢 EPS has grown at 10.1% a year over 3 years.

🟡 ROE has held roughly flat at 2.4% over 3 years.

🟢 ROCE has risen from 5.6% to 9.3% over 3 years (+3.7 pts).

🔴 Total Debt has grown at 28.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹138 Cr

Total Liabilities

₹82 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

45.3%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

6 general

Greencrest Financial shareholders approve capital hike at 34th AGM

scanx.trade, 24 Sept

GREENCREST FINANCIAL SERVICES Share Price

Upstox, 01 Apr

Greencrest Financial Services Limited (531737) Company Information

Simply Wall Street, 16 Nov

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Univest, 30 Jan

BIOGEN Stock Price and Chart — BSE:BIOGEN

TradingView, 22 Jun

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Samco, 16 Jun

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth · Risk

WeakProfitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x · see Key things to watch ↑