Interactive Financial Services Limited

Financial Services — Capital Markets · BSE

₹11.60−₹0.10 (−0.85%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

The 60-second version of Interactive 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?

Interactive Financial Services Limited offers IT and other services in India and the United States. The company provides IT Services comprising software implementation and revenue cycle enhancement consulting services in the healthcare domain.

IndustryCapital Markets

SectorFinancial Services

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹47 reaches shareholders as profit, with ₹70 left at the operating level before interest, tax and depreciation.

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 +373% while net margin moved -39% 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+373%

Margin effect-39%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Historical Valuation

Current P/E

2.0x

3Y Median

6.2x

40 monthly readings · mean 8.8x · range 1.9x–33.1x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 68% below its 3y median of 6.2x. 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 97% below the peer median of 58.4x.

vs. its own history

Cheap

6.2x median over 40 months · -68%

vs. sector peers

Cheap

58.4x median of 3 peers · -97%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

1.7x

PEG

0.05

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 39.9% to 70.3% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on capital is falling
ROCE has declined from 18.0% to 15.3% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 1130% against revenue growth of 373% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 88% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 39.9% to 70.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 68% 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 97% 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?

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 51% a year✓ 67.9% CAGR
Latest reported year was -0.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 68%✓ 70.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 9%✓ 11.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 6.2x✓ 2.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹8 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

2.0x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹5.92

Profitable

Profitable on a per-share basis

ROE

11.0%

Moderate

Moderate capital efficiency

ROCE

15.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.45x

High

High leverage

Revenue Growth (YoY)

-0.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

22.5%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

11.86

Comfortable

Healthy short-term liquidity

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

11.4 / 12.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

59.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹3 Cr	₹7 Cr	₹7 Cr	+67.9%
EBITDA	₹1 Cr	₹2 Cr	₹4 Cr	₹5 Cr	+102.8%
EBITDA Margin	39.9%	61.6%	60.3%	70.3%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹3 Cr	₹3 Cr	+42.8%
EPS	₹3.26	₹1.66	₹6.77	₹5.04	+15.6%
ROE	13.9%	4.9%	10.2%	11.0%	—
ROCE	18.0%	12.7%	14.4%	15.3%	—
Total Debt	—	—	₹1 Cr	₹1 Cr	—
Free Cash Flow	₹0 Cr	₹0 Cr	-₹1 Cr	₹2 Cr	+85.0%

🟢 Revenue has grown at 67.9% a year over 3 years.

🟢 EBITDA has grown at 102.8% a year over 3 years.

🟢 EBITDA Margin has risen from 39.9% to 70.3% over 3 years (+30.4 pts).

🟢 PAT (Net Profit) has grown at 42.8% a year over 3 years.

🟢 EPS has grown at 15.6% a year over 3 years.

🔴 ROE has fallen from 13.9% to 11.0% over 3 years (-2.9 pts).

🔴 ROCE has fallen from 18.0% to 15.3% over 3 years (-2.7 pts).

🟢 Free Cash Flow has grown at 85.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹34 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.5%

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

Interactive Brokers Group Inc Stock (IBKR) Closed Down by 3.83% on Oct 14: Drivers Behind the Movement

TradingKey, 14 Oct

Interactive Brokers Group, Inc. (IBKR) Outpaces Stock Market Gains: What You Should Know

Yahoo Finance, 02 Oct

Interactive Financial closes share books for AGM from Sep 21 to 29

scanx.trade, 07 Sept

Interactive Brokers Group Inc Stock Price Live, Charts & News

The Economic Times, 24 Dec

IBKR|Interactive Brokers Group Inc|Price:82.690|Chg%:-3.340

TradingKey, 15 Oct

INTERACTIVE FINANCIAL SERVICES Share Price

Upstox, 24 Mar

Watch Items

Revenue growth is negative (-0.5%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth

WeakProfitability · 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.

All 4 tripwires holding · see Key things to watch ↑