Khoobsurat Limited

Financial Services — Capital Markets · BSE

₹0.45−₹0.01 (−2.17%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

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 Khoobsurat Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Khoobsurat Limited engages in the investment and finance businesses in India. The company provides financial services for individuals and corporate entities. It also invests in shares and securities. The company was incorporated in 1982 and is based in Kolkata, India.

IndustryCapital Markets

SectorFinancial Services

Employees17

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹-32 reaches shareholders as profit, with ₹-31 left at the operating level before interest, tax and depreciation. Each of its 17 employees supports ₹8.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹8.6 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%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.26 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

82/ 100

Cheap

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

22.5x

3Y Median

62.0x

40 monthly readings · mean 66.2x · range 45.0x–108.7x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 64% below its 3y median of 62.0x. 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 61% below the peer median of 58.4x.

vs. its own history

Cheap

62.0x median over 40 months · -64%

vs. sector peers

Cheap

58.4x median of 3 peers · -61%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well0

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

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 1.4% to -1.6% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 2 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -12.0x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -12.5x to -12.0x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 177% over 3 years — each existing share owns a smaller slice of the company.
🟡Low reported insider holdingOwnership
Reported insider holding is 3.5%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 64% 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 61% 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -33%✓ -31.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ -0.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ -12.0x
How much operating profit can fall before interest stops being comfortably covered.
4Valuation vs its own median of 62.0x✓ 22.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ 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

₹21 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.5x

Fair

Fairly valued against the generic band

P/B Ratio

0.34x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.02

Profitable

Profitable on a per-share basis

ROE

-0.8%

Weak

Weak capital efficiency

ROCE

-1.6%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

195.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

100.0%

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

₹8 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

74.7%

Good

Healthy core-business profitability

Net Margin

23.0%

Good

Strong bottom-line conversion

Current Ratio

4.56

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.26

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

0.4 / 0.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

52.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹0 Cr	₹0 Cr	₹1 Cr	—
EBITDA	₹0 Cr	₹0 Cr	-₹2 Cr	-₹0 Cr	—
EBITDA Margin	—	82.7%	-5163.8%	-31.0%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	-₹2 Cr	-₹0 Cr	—
EPS	₹0.02	₹0.01	₹-0.05	₹-0.01	—
ROE	1.1%	0.4%	-3.7%	-0.8%	—
ROCE	1.4%	1.0%	-5.2%	-1.6%	—
Free Cash Flow	₹2 Cr	₹0 Cr	-₹16 Cr	₹8 Cr	+48.3%

🔴 EBITDA has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EBITDA Margin has fallen from 82.7% to -31.0% over 3 years (-113.6 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.02 to ₹-0.01.

🔴 ROE has fallen from 1.1% to -0.8% over 3 years (-1.8 pts).

🔴 ROCE has fallen from 1.4% to -1.6% over 3 years (-3.0 pts).

🟢 Free Cash Flow has grown at 48.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹70 Cr

Total Liabilities

₹8 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹8 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

3.5%

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

Khoobsurat (BSE:535730) - Stock Analysis

Simply Wall Street, 11 Apr

Khoobsurat Ltd Provides Brewery Project Installation and Commercial Production Timeline Updates

scanx.trade, 22 Feb

Khoobsurat Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 03 Sept

Compare with BETALA GLOBL

Equitymaster, 27 Sept

Khoobsurat Limited Shares Progress Update on Brewery Project

EquityBulls, 23 Sept

Khoobsurat Limited Confirms Non-Applicability of SEBI Certificate for Q1FY27

scanx.trade, 25 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability

WeakRisk

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. 2 high-severity red flags sit above this conclusion and should be read first.

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