OnEMI Technology Solutions Limited

Financial Services — Credit Services · NSE

₹345.25−₹10.15 (−2.86%)

DalalBaazaar Score

77 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

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, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

OnEMI Technology Solutions Limited operates as a digital lending platform in India and internationally. It offers financial technology solutions.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹1,337 Cr

How does it make money?

Turns over ₹1,337 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹55 left at the operating level before interest, tax and depreciation.

EBITDA margin55.0%

Net margin12.0%

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

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.

ROCE21.1%

ROE16.0%

Peer median ROE16.5%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 33.4% and earnings to grow about 45.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+33.4%

Est. earnings growth+45.4%

Analysts2

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 2 years revenue moved +36% while net margin moved +327% 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+36%

Margin effect+327%

DalalBaazaar Score

77/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

87/ 100

Excellent

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

Valuation

65/ 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

18.1x

Sector Median

17.0x

median of 4 sector peers

🟡Against its sector it is priced broadly in line with the peer median of 17.0x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Fair

17.0x median of 4 peers · +7%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

18.1x

P/B

3.05x

EV/EBITDA

10.3x

PEG

0.13

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 32.7% to 55.0% over 2 years.
Return on equity is rising
ROE has improved from 4.9% to 16.0%.
Return on capital is rising
ROCE has improved from 7.2% to 21.1%.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Interest coverage is deterioratingFinancial
Cover has fallen from 11.2x to 4.5x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 32.7% to 55.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 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
Small 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 12% a year✓ 16.6% CAGR
Latest reported year was 46.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 53%✓ 55.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 14%✓ 16.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 4x✓ 4.5x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

10 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹6,149 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.1x

Fair

Fairly valued against the generic band

P/B Ratio

3.05x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹19.04

Profitable

Profitable on a per-share basis

ROE

16.0%

Strong

Strong capital efficiency

ROCE

21.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.81x

High

High leverage

Revenue Growth (YoY)

46.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

29.5%

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

-₹669 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹345.25

P/E (Forward)

9.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

21.5%

Good

Healthy core-business profitability

Net Margin

15.1%

Good

Strong bottom-line conversion

Current Ratio

1.56

Comfortable

Healthy short-term liquidity

52W Range Position

78%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

362.9 / 332.1

Bullish alignment (short > long)

RSI (14)

49.1

Neutral momentum

Financial Trend (3-Year)

Metric	FY23	FY24	FY25	2Y CAGR
Revenue	₹984 Cr	₹1,674 Cr	₹1,337 Cr	+16.6%
EBITDA	₹322 Cr	₹666 Cr	₹736 Cr	+51.1%
EBITDA Margin	32.7%	39.8%	55.0%	—
PAT (Net Profit)	₹28 Cr	₹197 Cr	₹161 Cr	+140.9%
EPS	₹1.64	₹11.71	₹9.53	+140.9%
ROE	4.9%	24.5%	16.0%	—
ROCE	7.2%	28.9%	21.1%	—
Total Debt	₹444 Cr	₹836 Cr	₹1,556 Cr	+87.3%
Free Cash Flow	₹102 Cr	-₹640 Cr	-₹669 Cr	—

🟢 Revenue has grown at 16.6% a year over 2 years.

🟢 EBITDA has grown at 51.1% a year over 2 years.

🟢 EBITDA Margin has risen from 32.7% to 55.0% over 2 years (+22.3 pts).

🟢 PAT (Net Profit) has grown at 140.9% a year over 2 years.

🟢 EPS has grown at 140.9% a year over 2 years.

🟢 ROE has risen from 4.9% to 16.0% over 2 years (+11.1 pts).

🟢 ROCE has risen from 7.2% to 21.1% over 2 years (+13.9 pts).

🔴 Total Debt has grown at 87.3% a year over 2 years.

🔴 Free Cash Flow has turned negative, from ₹102 Cr to -₹669 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹2,701 Cr

Total Liabilities

₹1,695 Cr

Total Debt

₹1,556 Cr

Cash & Equivalents

₹133 Cr

Operating Cash Flow

-₹661 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

35.4%

Insider Holding

43.6%

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹417.5

+20.9% vs CMP

Target Range

₹385 – ₹450

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

1 mixed5 general

Onemi Technology shareholders approve preferential equity issue at ₹314.11 per share

scanx.trade, 18 Oct

Compare ARMAN LEASIN with

Equitymaster, 18 Oct

KISSHT Stock Price and Chart — NSE:KISSHT

TradingView, 20 Sept

Onemi Technology Solutions Approves 8.32 Billion Rupees Fundraising via Preferential Issue

Sahi, 18 Sept

Kissht parent OnEMI Tech shares soar 11% after strong D-Street debut. Should you buy, sell, or hold?

The Economic Times, 08 MayPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Onemi Technology Solutions Ltd | Stock Share Price Live

MarketSmith India, 22 Jun

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

🟢Business QualityStrong17.5/20

🟢Financial HealthStrong17/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong12/15

🟡ValuationFair9.3/15

🔴RiskHigh3.1/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 12% a year16.6% CAGR
✓EBITDA margin holds above 53%55.0%
✓Return on equity stays above 14%16.0%
✓Interest cover stays above 4x4.5x