KIFS Financial Services Limited

Financial Services — Capital Markets · BSE

₹105.40−₹0.25 (−0.24%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

KIFS Financial Services Limited operates as a non-banking financial and investment and credit company.

IndustryCapital Markets

SectorFinancial Services

Employees6

Annual revenue₹36 Cr

How does it make money?

Turns over ₹36 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit, with ₹96 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹6.00 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.00 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 +17% while net margin moved +7% 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+17%

Margin effect+7%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.4% — barely ahead of inflation
✗ Profit CAGR of only 7.7%

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

74/ 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

13.7x

3Y Median

21.7x

40 monthly readings · mean 20.8x · range 14.3x–28.4x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 37% below its 3y median of 21.7x. 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 77% below the peer median of 58.4x.

vs. its own history

Cheap

21.7x median over 40 months · -37%

vs. sector peers

Cheap

58.4x median of 3 peers · -77%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

13.7x

PEG

1.78

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 97.7% to 96.0% over 3 years.
Return on capital is falling
ROCE has declined from 63.6% to 53.9% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 40% against revenue growth of 17% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 37% 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 77% 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 97.7% to 96.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 5.4% 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.
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 94%✓ 96.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 11%✓ 12.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 5.4% CAGR
Latest reported year was 20.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Valuation vs its own median of 21.7x✓ 13.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

₹114 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.7x

Cheap

Cheap against the generic band

P/B Ratio

1.79x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.71

Profitable

Profitable on a per-share basis

ROE

12.6%

Moderate

Moderate capital efficiency

ROCE

53.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

6.02x

High

High leverage

Revenue Growth (YoY)

20.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

20.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.47%

Modest

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

Free Cash Flow

-₹156 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

88.7%

Good

Healthy core-business profitability

Net Margin

66.2%

Good

Strong bottom-line conversion

Current Ratio

1.13

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

109.7 / 110.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹31 Cr	₹47 Cr	₹29 Cr	₹36 Cr	+5.4%
EBITDA	₹30 Cr	₹46 Cr	₹33 Cr	₹35 Cr	+4.8%
EBITDA Margin	97.7%	98.6%	111.7%	96.0%	—
PAT (Net Profit)	₹6 Cr	₹7 Cr	₹8 Cr	₹8 Cr	+7.7%
EPS	₹5.91	₹6.58	₹7.46	₹7.38	+7.7%
ROE	14.3%	14.1%	14.1%	12.6%	—
ROCE	63.6%	89.0%	56.2%	53.9%	—
Total Debt	₹264 Cr	₹245 Cr	₹332 Cr	₹382 Cr	+13.0%
Free Cash Flow	-₹8 Cr	₹48 Cr	₹148 Cr	-₹156 Cr	—

🟢 Revenue has grown at 5.4% a year over 3 years.

🟢 EBITDA has grown at 4.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 97.7% to 96.0% over 3 years (-1.7 pts).

🟢 PAT (Net Profit) has grown at 7.7% a year over 3 years.

🟢 EPS has grown at 7.7% a year over 3 years.

🔴 ROE has fallen from 14.3% to 12.6% over 3 years (-1.7 pts).

🔴 ROCE has fallen from 63.6% to 53.9% over 3 years (-9.7 pts).

🔴 Total Debt has grown at 13.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹451 Cr

Total Liabilities

₹388 Cr

Cash & Equivalents

₹23 Cr

Operating Cash Flow

-₹155 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.4%

Corporate Actions

Dividend Rate

₹1.55

Ex-Dividend Date

22 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

1 positive2 mixed3 general

KIFS Financial Services Q1 FY27 Results: Revenue Rs 12 Cr, PAT Rs 2 Cr

Univest, 17 AugResults

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

KIFS Financial Services Submits Quarterly Compliance Certificate for Q4 FY26

scanx.trade, 12 AprResults

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

Elgi Equipments consolidated net profit rises 20.68% in the June 2026 quarter

Business Standard, 14 AugResults

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

KIFS Housing Finance appoints Selvin Uthaman as CEO

The Economic Times, 05 May

KIFS Stock Price and Chart — BSE:KIFS

TradingView, 25 Jul

KIFS Financial Services Ltd Share Price

Business Today, 31 Jan

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 · Profitability · Valuation

MiddlingRisk

WeakGrowth

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.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑