India Home Loan Limited

Financial Services — Mortgage Finance · BSE

₹30.10+₹0.04 (+0.13%)

DalalBaazaar Score

45 / 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, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

India Home Loan Limited operates as a housing finance company in India.

IndustryMortgage Finance

SectorFinancial Services

Employees46

Annual revenue₹15 Cr

How does it make money?

Turns over ₹15 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 46 employees supports ₹31.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹31.6 lakh

Who are its competitors?

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

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -34% while net margin moved -76% 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-34%

Margin effect-76%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 13.0% a year
✗ Profit has declined at 45.8% a year
✗ Latest-year revenue growth of -36.3% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

29/ 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

301.0x

3Y Median

85.6x

40 monthly readings · mean 145.2x · range 61.6x–454.3x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 252% above its 3y median of 85.6x. 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 1671% above the peer median of 17.0x.

vs. its own history

Expensive

85.6x median over 40 months · +252%

vs. sector peers

Expensive

17.0x median of 4 peers · +1671%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

76.2x

PEG

—

Red Flags

3 items require attention · 1 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 15.4 points, from 23.2% to 7.8%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 8.9x to 5.3x.
🟡Profit is decliningFinancial
Net profit is down 84% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 23.2% to 7.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 252% 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.
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 6%✓ 7.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 0.2%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 4x✓ 5.3x
How much operating profit can fall before interest stops being comfortably covered.
4Valuation vs its own median of 85.6x✗ 301.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 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 · 3 neutral · 4 weak

Market Cap

₹43 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

301.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.94x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.1

Profitable

Profitable on a per-share basis

ROE

0.2%

Weak

Weak capital efficiency

ROCE

0.2%

Weak

Low return on total capital employed

Debt/Equity

1.05x

Moderate

Moderate leverage

Revenue Growth (YoY)

-36.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

300.0%

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

₹6 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

2.3%

Weak

Thin margins leave little room for error

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

121.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.51

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

31.1 / 31.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹22 Cr	₹12 Cr	₹13 Cr	₹15 Cr	-13.0%
EBITDA	₹5 Cr	-₹5 Cr	₹1 Cr	₹1 Cr	-39.5%
EBITDA Margin	23.2%	-39.4%	5.6%	7.8%	—
PAT (Net Profit)	₹1 Cr	-₹3 Cr	₹0 Cr	₹0 Cr	-45.8%
EPS	₹0.42	₹-2.41	₹0.19	₹0.07	-45.0%
ROE	1.4%	-8.4%	0.7%	0.2%	—
ROCE	1.7%	-2.4%	0.4%	0.2%	—
Total Debt	₹91 Cr	₹57 Cr	₹50 Cr	₹43 Cr	-21.9%
Free Cash Flow	₹34 Cr	₹28 Cr	₹12 Cr	₹6 Cr	-44.4%

🔴 Revenue has shrunk at 13.0% a year over 3 years.

🔴 EBITDA has shrunk at 39.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 23.2% to 7.8% over 3 years (-15.4 pts).

🔴 PAT (Net Profit) has shrunk at 45.8% a year over 3 years.

🔴 EPS has shrunk at 45.0% a year over 3 years.

🔴 ROE has fallen from 1.4% to 0.2% over 3 years (-1.1 pts).

🔴 ROCE has fallen from 1.7% to 0.2% over 3 years (-1.4 pts).

🟢 Total Debt has shrunk at 21.9% a year over 3 years.

🔴 Free Cash Flow has shrunk at 44.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹97 Cr

Total Liabilities

₹56 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹6 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.4%

Corporate Actions

Ex-Dividend Date

21 Sept 2021

Peer Comparison

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

Recent News

1 positive5 general

India's home-buying age is falling: Gen Z home loan borrowers jump 86%

Business Standard, 23 Sept

Why Jefferies sees limited upside in Bajaj Housing Finance despite its fast-growing loan book

The Economic Times, 20 Aug

India Home Loan Q1 Results FY27: Net Profit Surges 560.64%, Revenue Rs 2 crore

Univest, 14 AugResults

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

LIC Housing Finance Share Pros and Cons 2026: Cheapest Housing Finance Stock?

Univest, 07 Aug

Indiabulls Housing Finance Share Price

Upstox, 17 Dec

Home loan rates start at 7% in Aug: Check best offers by top lenders

Business Standard, 27 Aug

Watch Items

Revenue growth is negative (-36.3%) 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

WeakBusiness Quality · Growth · 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.

2 of 4 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 85.6x · see Key things to watch ↑