HB Portfolio Limited

Financial Services — Capital Markets · NSE

₹59.87+₹0.23 (+0.39%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by 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, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

HB Portfolio Limited invests and deals in securities and commodities in India. The company operates in two segments, Financial Services and Commodities Trading.

IndustryCapital Markets

SectorFinancial Services

Employees7

Annual revenue₹23 Cr

How does it make money?

Turns over ₹23 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹3.33 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.33 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +11% while net margin moved -92% 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+11%

Margin effect-92%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.7% — barely ahead of inflation
✗ Profit has declined at 55.4% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

68/ 100

Cheap

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

17.4x

Sector Median

58.4x

median of 3 sector peers

🟢Against its sector it trades 70% below the peer median of 58.4x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

58.4x median of 3 peers · -70%

vs. generic bands

Fair

15x–35x

EV/EBITDA

23.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well0

Nothing stands out as clearly improving on the years of data available.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 81% against revenue growth of 11% — customers are taking longer to pay.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.5 points, from 19.0% to 11.5%.
🟡Profit is decliningFinancial
Net profit is down 91% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 70% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 19.0% to 11.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 3.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 9%✓ 11.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 0.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 4% a year✗ 3.7% CAGR
Latest reported year was 36.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

7 / 10 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

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹64 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.25x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.44

Profitable

Profitable on a per-share basis

ROE

0.1%

Weak

Weak capital efficiency

ROCE

0.7%

Weak

Low return on total capital employed

Debt/Equity

0.79x

Moderate

Moderate leverage

Revenue Growth (YoY)

36.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

156.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.09%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

58.7%

Good

Healthy core-business profitability

Net Margin

12.5%

Good

Strong bottom-line conversion

Current Ratio

33.56

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

69%

Mid-range

Technical Snapshot

RSI (14)

47.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹21 Cr	₹56 Cr	₹25 Cr	₹23 Cr	+3.7%
EBITDA	₹4 Cr	₹9 Cr	₹3 Cr	₹3 Cr	-12.3%
EBITDA Margin	19.0%	15.8%	12.7%	11.5%	—
PAT (Net Profit)	₹3 Cr	₹7 Cr	-₹0 Cr	₹0 Cr	-55.4%
EPS	₹2.84	₹6.53	₹-0.04	₹0.26	-54.9%
ROE	1.6%	2.5%	-0.0%	0.1%	—
ROCE	1.9%	2.8%	0.8%	0.7%	—
Total Debt	₹1 Cr	₹2 Cr	₹1 Cr	₹2 Cr	+37.7%
Free Cash Flow	₹0 Cr	₹17 Cr	-₹6 Cr	-₹10 Cr	—

🟢 Revenue has grown at 3.7% a year over 3 years.

🔴 EBITDA has shrunk at 12.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 19.0% to 11.5% over 3 years (-7.5 pts).

🔴 PAT (Net Profit) has shrunk at 55.4% a year over 3 years.

🔴 EPS has shrunk at 54.9% a year over 3 years.

🔴 ROE has fallen from 1.6% to 0.1% over 3 years (-1.5 pts).

🔴 ROCE has fallen from 1.9% to 0.7% over 3 years (-1.1 pts).

🔴 Total Debt has grown at 37.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹269 Cr

Total Liabilities

₹10 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.2%

Corporate Actions

Dividend Rate

₹1.25

Ex-Dividend Date

14 Aug 2026

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

3 positive2 mixed1 general

Compare HB PORTFOLIO with

Equitymaster, 28 Sept

HB Portfolio Q4 Results: Net profit turns positive at ₹145.11 lakh

scanx.trade, 12 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

MarketsMOJO Upgrades HB Portfolio Ltd to Hold on Improved Technicals and Valuation

MarketsMojo, 07 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

HB Portfolio Q1 FY27 Results: Revenue Rs 10 Cr, PAT Rs 4 Cr and Key Highlights

Univest, 11 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

HB Portfolio consolidated net profit rises 158.26% 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.

HB Portfolio shareholders approve FY26 results, Re. 1 dividend

scanx.trade, 09 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

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

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability

WeakGrowth · Risk

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 3 tripwires tripped — Return on equity stays above 8%; Revenue growth stays above 4% a year · see Key things to watch ↑