Jhaveri Credits and Capital Limited

Financial Services — Capital Markets · BSE

₹180.05+₹7.20 (+4.17%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, 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, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Jhaveri Credits and Capital Limited engages in the investment and trading of solar equipment and related products business in India. The company offers inverters, cables and other electronic accessories as well as trading, exports, and imports solar panels.

IndustryCapital Markets

SectorFinancial Services

Employees70

Annual revenue₹112 Cr

How does it make money?

Turns over ₹112 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 70 employees supports ₹1.60 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.60 Cr

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 +882% while net margin moved -75% 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+882%

Margin effect-75%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 1.6% is weak
✗ ROE has fallen by 7.9 points over the period

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

44/ 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

76.3x

3Y Median

132.0x

40 monthly readings · mean 151.2x · range 54.3x–415.6x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 42% below its 3y median of 132.0x. 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 31% above the peer median of 58.4x.

vs. its own history

Cheap

132.0x median over 40 months · -42%

vs. sector peers

Expensive

58.4x median of 3 peers · +31%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

51.2x

PEG

2.15

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 9.5% to 1.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 12.8% to 1.3% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.3 points, from 8.6% to 3.4%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 47% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 42% 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.
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 8.6% to 3.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 31% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 9.5% to 1.6%. 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

1Revenue growth stays above 86% a year✓ 114.2% CAGR
Latest reported year was 91.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 3.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 1.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 132.0x✓ 76.3x 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

2 good · 3 neutral · 6 weak

Market Cap

₹200 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

76.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.72x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.36

Profitable

Profitable on a per-share basis

ROE

1.6%

Weak

Weak capital efficiency

ROCE

1.3%

Weak

Low return on total capital employed

Debt/Equity

8.40x

High

High leverage

Revenue Growth (YoY)

91.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-41.1%

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

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-7.0%

Weak

Thin margins leave little room for error

Net Margin

-5.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

8.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-1.10

Defensive

Steadier than the market

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

193.0 / 184.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11 Cr	₹26 Cr	₹91 Cr	₹112 Cr	+114.2%
EBITDA	₹1 Cr	₹3 Cr	₹5 Cr	₹4 Cr	+56.4%
EBITDA Margin	8.6%	10.7%	5.4%	3.4%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹3 Cr	₹2 Cr	+35.5%
EPS	₹1.22	₹1.79	₹3.13	₹1.66	+10.8%
ROE	9.5%	1.9%	3.1%	1.6%	—
ROCE	12.8%	3.0%	3.7%	1.3%	—
Total Debt	—	₹1 Cr	₹1 Cr	₹10 Cr	—
Free Cash Flow	₹2 Cr	-₹9 Cr	-₹4 Cr	-₹5 Cr	—

🟢 Revenue has grown at 114.2% a year over 3 years.

🟢 EBITDA has grown at 56.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.6% to 3.4% over 3 years (-5.3 pts).

🟢 PAT (Net Profit) has grown at 35.5% a year over 3 years.

🟢 EPS has grown at 10.8% a year over 3 years.

🔴 ROE has fallen from 9.5% to 1.6% over 3 years (-7.9 pts).

🔴 ROCE has fallen from 12.8% to 1.3% over 3 years (-11.5 pts).

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹139 Cr

Total Liabilities

₹19 Cr

Cash & Equivalents

₹18 Cr

Operating Cash Flow

-₹5 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.7%

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

Jhaveri Credits & Capital Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Jhaveri Credits promoter stake rises to 63.24% via amalgamation

scanx.trade, 01 Jul

Jhaveri Credits receives LoA from New & Renewable Energy Development Corporation of Andhra Pradesh

Business Standard, 04 Sept

Jhaveri Credits & Capital Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Praveg approves ₹53.72 Cr preferential issue to promoters

scanx.trade, 13 Jul

Jhaveri Credits & Capital Ltd

Equitypandit, 18 Mar

Watch Items

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

MiddlingGrowth · Valuation

WeakBusiness Quality · 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.

1 of 4 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑