Indo Thai Securities Limited

Financial Services — Capital Markets · NSE

₹34.81+₹1.65 (+4.98%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: Strong business and financial position, 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, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Indo Thai Securities Limited engages in the stock and share broking, depository participants, and other related ancillary businesses in India. The company operates through Equity, F&O, Currency Derivatives, Mutual Fund, Income from Depository Operations, and Commodity segments.

IndustryCapital Markets

SectorFinancial Services

Employees115

Annual revenue₹47 Cr

How does it make money?

Turns over ₹47 Cr a year. Of every ₹100 of sales, about ₹142 reaches shareholders as profit, with ₹182 left at the operating level before interest, tax and depreciation. Each of its 115 employees supports ₹40.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹40.7 lakh

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 +738% while net margin moved -222% 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+738%

Margin effect-222%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.36 — amplifies market moves in both directions
✗ 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

81/ 100

Excellent

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

Valuation

86/ 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

6.5x

2Y Median

123.3x

28 monthly readings · mean 191.3x · range 6.3x–541.7x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 95% below its 2y median of 123.3x. 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 89% below the peer median of 58.4x.

vs. its own history

Cheap

123.3x median over 28 months · -95%

vs. sector peers

Cheap

58.4x median of 3 peers · -89%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.5x

PEG

0.35

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -148.1% to 182.0% over 3 years.
Return on equity is rising
ROE has improved from -11.1% to 23.4%.
Return on capital is rising
ROCE has improved from -14.2% to 28.9%.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 29% 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 -148.1% to 182.0%. 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 95% 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 89% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 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 77% a year✓ 103.1% CAGR
Latest reported year was 43.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 180%✓ 182.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 21%✓ 23.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 123.3x✓ 6.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹451 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.5x

Cheap

Cheap against the generic band

P/B Ratio

1.57x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.39

Profitable

Profitable on a per-share basis

ROE

23.4%

Strong

Strong capital efficiency

ROCE

28.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

8.37x

High

High leverage

Revenue Growth (YoY)

43.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

18.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.57%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹35 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

74.9%

Good

Healthy core-business profitability

Net Margin

63.7%

Good

Strong bottom-line conversion

Current Ratio

2.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.36

High swing

Swings more than the market in both directions

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

34.5 / 48.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

57.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6 Cr	₹24 Cr	₹15 Cr	₹47 Cr	+103.1%
EBITDA	-₹8 Cr	₹21 Cr	₹11 Cr	₹85 Cr	—
EBITDA Margin	-148.1%	85.9%	76.5%	182.0%	—
PAT (Net Profit)	-₹6 Cr	₹16 Cr	₹8 Cr	₹66 Cr	—
EPS	₹-0.65	₹1.6	₹0.78	₹5.29	—
ROE	-11.1%	21.9%	4.6%	23.4%	—
ROCE	-14.2%	26.9%	6.1%	28.9%	—
Total Debt	₹3 Cr	₹6 Cr	₹3 Cr	₹24 Cr	+97.5%
Free Cash Flow	₹1 Cr	-₹5 Cr	-₹22 Cr	-₹35 Cr	—

🟢 Revenue has grown at 103.1% a year over 3 years.

🟢 EBITDA has turned positive, from -₹8 Cr to ₹85 Cr.

🟢 EBITDA Margin has risen from -148.1% to 182.0% over 3 years (+330.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹6 Cr to ₹66 Cr.

🟢 EPS has turned positive, from ₹-0.65 to ₹5.29.

🟢 ROE has risen from -11.1% to 23.4% over 3 years (+34.5 pts).

🟢 ROCE has risen from -14.2% to 28.9% over 3 years (+43.1 pts).

🔴 Total Debt has grown at 97.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹35 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹374 Cr

Total Liabilities

₹87 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹34 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

59.2%

Corporate Actions

Dividend Rate

₹0.2

Ex-Dividend Date

11 Sept 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

6 general

Indo Thai Securities reports ₹66.86 crore net profit for FY26 at AGM

scanx.trade, 18 Oct

Indo Thai Securities Upper Circuit Today: Price, Data and Peers

Univest, 17 Oct

Here's Why We Think Indo Thai Securities (NSE:INDOTHAI) Might Deserve Your Attention Today

Simply Wall Street, 28 Aug

Indo Thai Securities Ltd. Peer Comparison – Compare with Others

Value Research, 29 Aug

how InvestingPro’s fair value predicted 56% drop in Indo Thai Securities By Investing.com

Investing.com India, 15 Aug

Indo Thai Securities (INDOTHAI.NS) Climbs 4.35% to ₹36.72, Tests Upper End of Recent Range - Volatility Breakout Picks

https://www.siam.in/, 05 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

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.

All 4 tripwires holding · see Key things to watch ↑