Kalyan Capitals Limited

Financial Services — Capital Markets · BSE

₹6.22+₹0.10 (+1.63%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kalyan Capitals Limited, a non-banking financial company, engages in lending business in India.

IndustryCapital Markets

SectorFinancial Services

Annual revenue₹33 Cr

How does it make money?

Turns over ₹33 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹19 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +69% while net margin moved -25% 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+69%

Margin effect-25%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ ROE of 8.3% is weak

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

77/ 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

3.7x

3Y Median

8.0x

40 monthly readings · mean 9.2x · range 5.2x–16.5x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 53% below its 3y median of 8.0x. 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 94% below the peer median of 58.4x.

vs. its own history

Cheap

8.0x median over 40 months · -53%

vs. sector peers

Cheap

58.4x median of 3 peers · -94%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

43.1x

PEG

0.46

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.0 points, from 27.6% to 18.7%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 53% 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 94% 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 27.6% to 18.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 14% a year✓ 19.2% CAGR
Latest reported year was 39.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 18.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✓ 8.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 8.0x✓ 3.7x 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 · 4 neutral · 2 weak

Market Cap

₹33 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.7x

Cheap

Cheap against the generic band

P/B Ratio

0.49x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.67

Profitable

Profitable on a per-share basis

ROE

8.3%

Moderate

Moderate capital efficiency

ROCE

11.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

3.87x

High

High leverage

Revenue Growth (YoY)

39.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-56.5%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

92.4%

Good

Healthy core-business profitability

Net Margin

8.5%

Average

Average bottom-line conversion

Current Ratio

1.19

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.30

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

6.4 / 6.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹30 Cr	₹25 Cr	₹33 Cr	+19.2%
EBITDA	₹5 Cr	₹9 Cr	₹7 Cr	₹6 Cr	+4.6%
EBITDA Margin	27.6%	28.8%	26.4%	18.7%	—
PAT (Net Profit)	₹4 Cr	₹6 Cr	₹2 Cr	₹5 Cr	+8.1%
EPS	₹2.57	₹1.41	₹0.58	₹1.05	-25.8%
ROE	8.7%	12.8%	5.0%	8.3%	—
ROCE	10.7%	17.8%	9.2%	11.9%	—
Total Debt	₹96 Cr	₹125 Cr	₹187 Cr	₹238 Cr	+35.6%
Free Cash Flow	₹2 Cr	₹5 Cr	₹5 Cr	₹4 Cr	+29.9%

🟢 Revenue has grown at 19.2% a year over 3 years.

🟢 EBITDA has grown at 4.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 27.6% to 18.7% over 3 years (-9.0 pts).

🟢 PAT (Net Profit) has grown at 8.1% a year over 3 years.

🔴 EPS has shrunk at 25.8% a year over 3 years.

🟡 ROE has held roughly flat at 8.3% over 3 years.

🟢 ROCE has risen from 10.7% to 11.9% over 3 years (+1.2 pts).

🔴 Total Debt has grown at 35.6% a year over 3 years.

🟢 Free Cash Flow has grown at 29.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹303 Cr

Total Liabilities

₹242 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

66.6%

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 positive1 mixed1 negative3 general

Biogen Pharmachem Industries (BSE:531752) - Stock Analysis

Simply Wall Street, 15 Oct

Kalyan Capitals AGM passes all resolutions; SVP & Associates appointed auditors

scanx.trade, 28 Sept

Kalyan Capitals Q1 Results FY27: PAT Rs 1 Cr, Revenue Rs 12 crore

Univest, 14 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Kalyan Capitals promoter pledges 26% stake for loan

scanx.trade, 08 SeptOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Titan Intech - 12 penny stocks surge up to 125% in just 2 months; 2 turn multibaggers. Did you own any?

The Economic Times, 24 May

Hindcon Chemicals consolidated net profit rises 80.74% in the June 2026 quarter

Business Standard, 13 AugResults

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

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 · Valuation

MiddlingBusiness Quality · Growth

WeakProfitability · Risk

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. 1 high-severity red flag sits above this conclusion and should be read first.

All 4 tripwires holding · see Key things to watch ↑