Inani Securities Limited

Financial Services — Capital Markets · BSE

₹33.70₹0.00 (0.00%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Inani Securities Limited engages in stock broking and financial services to individual and institutional clients in India.

IndustryCapital Markets

SectorFinancial Services

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹52 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +3% while net margin moved -84% 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+3%

Margin effect-84%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.0% — barely ahead of inflation
✗ Profit has declined at 44.8% a year

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

37/ 100

Expensive

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

124.8x

3Y Median

19.3x

40 monthly readings · mean 36.4x · range 7.9x–198.2x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 545% above its 3y median of 19.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 114% above the peer median of 58.4x.

vs. its own history

Expensive

19.3x median over 40 months · +545%

vs. sector peers

Expensive

58.4x median of 3 peers · +114%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

12.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -16.7% to 52.0% 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 4.2% to 1.5% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 208% against revenue growth of 3% — stock may not be moving.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 4.1x to 1.5x.
🟡Profit is decliningFinancial
Net profit is down 83% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -16.7% to 52.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

The price already assumes success
The stock trades 545% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 1.0% 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 50%✓ 52.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 0.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 1.0% CAGR
Latest reported year was 30.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Valuation vs its own median of 19.3x✗ 124.8x 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

5 good · 2 neutral · 4 weak

Market Cap

₹15 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

124.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.80x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.27

Profitable

Profitable on a per-share basis

ROE

0.6%

Weak

Weak capital efficiency

ROCE

1.5%

Weak

Low return on total capital employed

Debt/Equity

3.96x

High

High leverage

Revenue Growth (YoY)

30.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

325.0%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

0.5%

Weak

Assets generate little profit

Operating Margin

24.4%

Good

Healthy core-business profitability

Net Margin

7.6%

Average

Average bottom-line conversion

Current Ratio

3.84

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.52

Defensive

Steadier than the market

52W Range Position

99%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

30.8 / 30.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

85.2

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+1.0%
EBITDA	-₹0 Cr	₹2 Cr	₹1 Cr	₹1 Cr	—
EBITDA Margin	-16.7%	182.8%	93.0%	52.0%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-44.8%
EPS	₹0.99	₹2.9	₹1.25	₹0.17	-44.4%
ROE	2.6%	6.9%	2.9%	0.4%	—
ROCE	4.2%	10.4%	5.1%	1.5%	—
Total Debt	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+74.6%
Free Cash Flow	-₹3 Cr	-₹1 Cr	-₹1 Cr	₹0 Cr	—

🟡 Revenue has been broadly flat over 3 years (1.0% a year).

🟢 EBITDA has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EBITDA Margin has risen from -16.7% to 52.0% over 3 years (+68.7 pts).

🔴 PAT (Net Profit) has shrunk at 44.8% a year over 3 years.

🔴 EPS has shrunk at 44.4% a year over 3 years.

🔴 ROE has fallen from 2.6% to 0.4% over 3 years (-2.2 pts).

🔴 ROCE has fallen from 4.2% to 1.5% over 3 years (-2.7 pts).

🔴 Total Debt has grown at 74.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹26 Cr

Total Liabilities

₹6 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

62.4%

Corporate Actions

Ex-Dividend Date

24 Sept 2008

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

2 positive1 mixed3 general

Inani Securities Q2FY27 Results: Net profit rises 308% YoY to ₹7.96 lakh

scanx.trade, 16 OctResults

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

Aikyam Financial files open offer to acquire 26% stake in Inani Securities

scanx.trade, 12 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Anand Rathi Share and Stock Brokers Ltd Peer Comparison – Compare with Others

Value Research, 30 Aug

Inani Marbles & Industries Ltd Upgraded to Sell on Valuation Improvement

MarketsMojo, 07 OctAnalyst view

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

Inani Securities shareholders approve Vishnukant Inani as MD with 100% votes

scanx.trade, 06 Oct

INANI SECURITIES LTD. Share Price

Upstox, 11 Apr

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality

WeakGrowth · Profitability · Valuation · 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.

4 of 5 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x; Revenue growth stays above 4% a year; Valuation vs its own median of 19.3x · see Key things to watch ↑