Kreon Finnancial Services Limited

Financial Services — Credit Services · BSE

₹89.95+₹1.50 (+1.70%)

DalalBaazaar Score

75 / 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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kreon Finnancial Services Limited, a fintech company, engages in the retail loan lending business in India.

IndustryCredit Services

SectorFinancial Services

Employees142

Annual revenue₹39 Cr

How does it make money?

Turns over ₹39 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹48 left at the operating level before interest, tax and depreciation. Each of its 142 employees supports ₹27.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹27.2 lakh

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.

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 ROE16.5%

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 +310% while net margin moved -61% 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+310%

Margin effect-61%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.05 — 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
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

82/ 100

Excellent

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

Valuation

57/ 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

23.1x

3Y Median

70.1x

40 monthly readings · mean 68.5x · range 14.6x–258.8x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 67% below its 3y median of 70.1x. 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 36% above the peer median of 17.0x.

vs. its own history

Cheap

70.1x median over 40 months · -67%

vs. sector peers

Expensive

17.0x median of 4 peers · +36%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.7x

PEG

1.39

What's Good / What's Bad

🟢 What's Going Well1

Return on capital is rising
ROCE has improved from 18.4% to 26.7%.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 49.6% to 47.8% over 3 years.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 48% 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 67% 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.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 49.6% to 47.8%. 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 36% above the peer median. That premium needs a reason that persists, or it closes.
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 45% a year✓ 60.1% CAGR
Latest reported year was 37.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 46%✓ 47.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 18%✓ 20.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 70.1x✓ 23.1x 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

₹182 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.1x

Fair

Fairly valued against the generic band

P/B Ratio

5.02x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹3.9

Profitable

Profitable on a per-share basis

ROE

20.1%

Strong

Strong capital efficiency

ROCE

26.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.03x

Moderate

Moderate leverage

Revenue Growth (YoY)

37.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

16.6%

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

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

22.2%

Good

Healthy core-business profitability

Net Margin

20.2%

Good

Strong bottom-line conversion

Current Ratio

1.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.05

Defensive

Steadier than the market

52W Range Position

90%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

85.6 / 86.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9 Cr	₹16 Cr	₹23 Cr	₹39 Cr	+60.1%
EBITDA	₹5 Cr	₹15 Cr	₹8 Cr	₹18 Cr	+58.2%
EBITDA Margin	49.6%	94.1%	36.2%	47.8%	—
PAT (Net Profit)	₹5 Cr	₹1 Cr	-₹4 Cr	₹7 Cr	+16.6%
EPS	₹2.62	₹0.34	₹-2.05	₹3.59	+11.1%
ROE	22.0%	1.9%	-13.4%	20.1%	—
ROCE	18.4%	21.8%	-6.0%	26.7%	—
Total Debt	₹10 Cr	₹29 Cr	₹33 Cr	₹37 Cr	+57.3%
Free Cash Flow	-₹7 Cr	-₹2 Cr	-₹1 Cr	-₹9 Cr	—

🟢 Revenue has grown at 60.1% a year over 3 years.

🟢 EBITDA has grown at 58.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 49.6% to 47.8% over 3 years (-1.8 pts).

🟢 PAT (Net Profit) has grown at 16.6% a year over 3 years.

🟢 EPS has grown at 11.1% a year over 3 years.

🔴 ROE has fallen from 22.0% to 20.1% over 3 years (-1.9 pts).

🟢 ROCE has risen from 18.4% to 26.7% over 3 years (+8.3 pts).

🔴 Total Debt has grown at 57.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹77 Cr

Total Liabilities

₹41 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹7 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.9%

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

Kreon Finnancial Services Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Kreon Financial raises stake in Kairosoft AI to 19.79%

scanx.trade, 07 Oct

Compare KREON FINNANCIAL with

Equitymaster, 10 Oct

Kreon Financial Raises Kairosoft Stake; Shares Rise 4%

HDFC Sky, 15 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.

SAHLIBHFI Stock Price and Chart — NSE:SAHLIBHFI

TradingView, 10 Apr

Kreon Financial raises Gujarat Winding stake to 7.47% via open market buy

scanx.trade, 29 Aug

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
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

MiddlingGrowth · Valuation

WeakRisk

Points for each in the Score ↑

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.

All 4 tripwires holding · see Key things to watch ↑