Inventure Growth & Securities Limited

Financial Services — Capital Markets · NSE

₹0.81+₹0.01 (+1.25%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Inventure Growth & Securities Limited, together with its subsidiaries, provides stock broking services in India.

IndustryCapital Markets

SectorFinancial Services

Employees105

Annual revenue₹33 Cr

How does it make money?

Turns over ₹33 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 105 employees supports ₹31.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹31.2 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +12% while net margin moved -63% 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+12%

Margin effect-63%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.8% — barely ahead of inflation
✗ Profit has declined at 25.4% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows
✗ Latest-year revenue growth of -9.8% is below the longer-term trend — momentum is fading
✗ Profit fell 13.7% in the latest year

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

62/ 100

Fair

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

27.0x

3Y Median

22.7x

40 monthly readings · mean 30.4x · range 9.9x–75.0x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 19% above its 3y median of 22.7x. 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 54% below the peer median of 58.4x.

vs. its own history

Fair

22.7x median over 40 months · +19%

vs. sector peers

Cheap

58.4x median of 3 peers · -54%

vs. generic bands

Fair

15x–35x

EV/EBITDA

25.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Return on equity is falling
ROE has dropped from 4.4% to 1.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 6.9% to 2.7% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 189% against revenue growth of 12% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 1278% against revenue growth of 12% — stock may not be moving.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 38.0 points, from 52.0% to 13.9%.
🟡Profit is decliningFinancial
Net profit is down 58% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 20% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 54% 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?

Margins are being competed away
EBITDA margin has fallen from 52.0% to 13.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 3.8% 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.
Returns on shareholder capital are falling
ROE has dropped from 4.4% to 1.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 12%✓ 13.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 1.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ 2.7x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 3.8% CAGR
Latest reported year was -9.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Valuation vs its own median of 22.7x✓ 27.0x 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

4 good · 3 neutral · 4 weak

Market Cap

₹85 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.0x

Fair

Fairly valued against the generic band

P/B Ratio

0.31x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.03

Profitable

Profitable on a per-share basis

ROE

1.4%

Weak

Weak capital efficiency

ROCE

2.7%

Weak

Low return on total capital employed

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

-9.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-13.7%

Falling

Profits are shrinking

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

Operating Margin

46.6%

Good

Healthy core-business profitability

Net Margin

7.8%

Average

Average bottom-line conversion

Current Ratio

2.46

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.50

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.8 / 0.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

11.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹29 Cr	₹51 Cr	₹44 Cr	₹33 Cr	+3.8%
EBITDA	₹15 Cr	₹25 Cr	₹11 Cr	₹5 Cr	-33.1%
EBITDA Margin	52.0%	48.5%	24.7%	13.9%	—
PAT (Net Profit)	₹9 Cr	₹12 Cr	₹2 Cr	₹4 Cr	-25.4%
EPS	₹0.11	₹0.13	₹0.02	₹0.04	-27.7%
ROE	4.4%	5.4%	0.8%	1.4%	—
ROCE	6.9%	9.1%	3.4%	2.7%	—
Total Debt	₹28 Cr	₹24 Cr	₹33 Cr	₹37 Cr	+9.2%
Free Cash Flow	-₹6 Cr	-₹0 Cr	-₹54 Cr	₹0 Cr	—

🟢 Revenue has grown at 3.8% a year over 3 years.

🔴 EBITDA has shrunk at 33.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 52.0% to 13.9% over 3 years (-38.0 pts).

🔴 PAT (Net Profit) has shrunk at 25.4% a year over 3 years.

🔴 EPS has shrunk at 27.7% a year over 3 years.

🔴 ROE has fallen from 4.4% to 1.4% over 3 years (-3.0 pts).

🔴 ROCE has fallen from 6.9% to 2.7% over 3 years (-4.2 pts).

🔴 Total Debt has grown at 9.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹6 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹376 Cr

Total Liabilities

₹100 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

26.4%

Corporate Actions

Ex-Dividend Date

19 Sept 2019

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

1 mixed5 general

Inventure Growth & Securities (NSEI:INVENTURE) - Stock Analysis

Simply Wall Street, 15 Oct

Inventure Growth & Securities Bull Case vs Bear Case for 2026

Univest, 11 Sept

Inventure Growth & Securities posts ₹4.61 crore profit in Q1FY26

scanx.trade, 03 Aug

Why Is Inventure Growth and Securities Share Price Falling Key Reasons 2026

Univest, 18 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Momentum Stocks: Gujarat State Petronet, Ecoline Exim, Inventure Grow rally up to 10% on sheer momentum

Moneycontrol.com, 17 Apr

LKPSEC Stock Price and Chart — NSE:LKPSEC

TradingView, 17 Aug

Watch Items

Revenue growth is negative (-9.8%) 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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · 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.

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