Haryana Capfin Limited

Financial Services — Credit Services · BSE

₹143.00−₹2.90 (−1.99%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Haryana Capfin Limited, operates as a non-banking financial company, engages in financing and investment activities in India. The company primarily engaged in investing in shares and securities.

IndustryCredit Services

SectorFinancial Services

Employees12

Annual revenue₹6 Cr

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹161 reaches shareholders as profit, with ₹-14 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹50.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹50.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK 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 ROE16.5%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +121% while net margin moved +181% 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+121%

Margin effect+181%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.54 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

88/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

8.3x

3Y Median

34.5x

40 monthly readings · mean 34.5x · range 7.6x–71.3x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 76% below its 3y median of 34.5x. 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 51% below the peer median of 17.0x.

vs. its own history

Cheap

34.5x median over 40 months · -76%

vs. sector peers

Cheap

17.0x median of 4 peers · -51%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.10

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Short-term liquidity is tight
Current ratio of 0.89 — near-term obligations exceed near-term assets.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 91.7 points, from 77.8% to -13.9%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 76% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 51% 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?

Margins are being competed away
EBITDA margin has fallen from 77.8% to -13.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 23% a year✓ 30.3% CAGR
Latest reported year was -15.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -16%✓ -13.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 3.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 34.5x✓ 8.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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 · 2 neutral · 5 weak

Market Cap

₹74 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.3x

Cheap

Cheap against the generic band

P/B Ratio

0.25x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹17.2

Profitable

Profitable on a per-share basis

ROE

3.3%

Weak

Weak capital efficiency

ROCE

1.5%

Weak

Low return on total capital employed

Debt/Equity

7.40x

High

High leverage

Revenue Growth (YoY)

-15.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

87.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

93.5%

Good

Healthy core-business profitability

Net Margin

70.9%

Good

Strong bottom-line conversion

Current Ratio

0.89

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.54

Defensive

Steadier than the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

143.4 / 143.4

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3 Cr	₹4 Cr	₹7 Cr	₹6 Cr	+30.3%
EBITDA	₹2 Cr	₹4 Cr	₹7 Cr	-₹1 Cr	—
EBITDA Margin	77.8%	86.1%	94.9%	-13.9%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹5 Cr	₹10 Cr	+83.9%
EPS	₹3.01	₹5.41	₹10.02	₹18.74	+84.0%
ROE	0.9%	0.7%	1.5%	3.3%	—
ROCE	0.9%	0.7%	1.6%	1.5%	—
Free Cash Flow	₹45 Cr	-₹2 Cr	-₹2 Cr	-₹1 Cr	—

🟢 Revenue has grown at 30.3% a year over 3 years.

🔴 EBITDA has turned negative, from ₹2 Cr to -₹1 Cr.

🔴 EBITDA Margin has fallen from 77.8% to -13.9% over 3 years (-91.7 pts).

🟢 PAT (Net Profit) has grown at 83.9% a year over 3 years.

🟢 EPS has grown at 84.0% a year over 3 years.

🟢 ROE has risen from 0.9% to 3.3% over 3 years (+2.5 pts).

🟡 ROCE has held roughly flat at 1.5% over 3 years.

🔴 Free Cash Flow has turned negative, from ₹45 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹394 Cr

Total Liabilities

₹101 Cr

Total Debt

₹22 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.9%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

1 positive1 negative4 general

Compare M.B.PARIKH with HARYANA CAPFIN

Equitymaster, 16 Oct

Haryana Capfin Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 15 Sept

Haryana Capfin Ltd Downgraded to Strong Sell Amid Weak Financials and Bearish Technicals

MarketsMojo, 02 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Haryana Capfin Limited Increases Stake in Maharashtra Seamless Limited to 4.71%

scanx.trade, 25 Feb

Dhunseri Ventures consolidated net profit rises 144.58% in the June 2026 quarter

Business Standard, 10 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Compare HARYANA CAPFIN with ESCORT FINAN

Equitymaster, 27 Sept

Watch Items

Revenue growth is negative (-15.9%) on the latest reported period — check if this is one-off or a trend.
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

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 4 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑