K Z Leasing and Finance Limited

Financial Services — Credit Services · BSE

₹16.16₹0.00 (0.00%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

K Z Leasing and Finance Limited operates as a non-banking financial company in India.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹-50 reaches shareholders as profit, with ₹-305 left at the operating level before interest, tax and depreciation.

EBITDA margin-304.6%

Net margin-49.5%

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.

ROCE1.8%

ROE-1.4%

Peer median ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -37% while net margin moved -217% 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-37%

Margin effect-217%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 14.3% a year

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

68/ 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

14.6x

3Y Median

12.8x

40 monthly readings · mean 16.9x · range 6.5x–41.1x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 14% above its 3y median of 12.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

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

vs. its own history

Fair

12.8x median over 40 months · +14%

vs. sector peers

Fair

17.0x median of 4 peers · -14%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.6x

P/B

0.32x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Return on capital is rising
ROCE has improved from -4.4% to 1.8%.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from -208.7% to -304.6% over 3 years.
Return on equity is falling
ROE has dropped from 1.7% to -1.4% — each rupee of shareholder capital earns less than it did.
Receivables growing faster than sales
Receivables are up 16978% against revenue growth of -37% — customers are taking longer to pay.
Short-term liquidity is tight
Current ratio of 0.16 — near-term obligations exceed near-term assets.

Red Flags

3 items require attention · 3 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.7x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 95.9 points, from -208.7% to -304.6%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from -208.7% to -304.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 1.7% to -1.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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
3 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 -307%✓ -304.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ -1.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ 0.7x
How much operating profit can fall before interest stops being comfortably covered.
4Valuation vs its own median of 12.8x✓ 14.6x 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 · 3 neutral · 3 weak

Market Cap

₹5 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.6x

Cheap

Cheap against the generic band

P/B Ratio

0.32x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.11

Profitable

Profitable on a per-share basis

ROE

-1.4%

Weak

Weak capital efficiency

ROCE

1.8%

Weak

Low return on total capital employed

Debt/Equity

1.44x

Moderate

Moderate leverage

Revenue Growth (YoY)

26.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

82.5%

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

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹16.16

Operating Margin

80.2%

Good

Healthy core-business profitability

Net Margin

15.9%

Good

Strong bottom-line conversion

Current Ratio

0.16

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.93

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

16.0 / 17.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

63.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-14.3%
EBITDA	-₹1 Cr	-₹5 Cr	-₹1 Cr	-₹1 Cr	—
EBITDA Margin	-208.7%	-877.5%	-148.7%	-304.6%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	-₹0 Cr	-₹0 Cr	—
EPS	₹0.95	₹2.37	₹-0.62	₹-0.7	—
ROE	1.7%	3.5%	-1.0%	-1.4%	—
ROCE	-4.4%	-9.6%	-1.1%	1.8%	—
Total Debt	₹5 Cr	₹7 Cr	₹2 Cr	₹22 Cr	+65.6%
Free Cash Flow	₹0 Cr	-₹1 Cr	₹1 Cr	-₹5 Cr	—

🔴 Revenue has shrunk at 14.3% a year over 3 years.

🔴 EBITDA Margin has fallen from -208.7% to -304.6% over 3 years (-95.9 pts).

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

🔴 EPS has turned negative, from ₹0.95 to ₹-0.7.

🔴 ROE has fallen from 1.7% to -1.4% over 3 years (-3.1 pts).

🟢 ROCE has risen from -4.4% to 1.8% over 3 years (+6.3 pts).

🔴 Total Debt has grown at 65.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹40 Cr

Total Liabilities

₹24 Cr

Total Debt

₹22 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹5 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.3%

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 positive2 mixed3 general

KZ Leasing submits voting results and scrutinizer report for 40th AGM

scanx.trade, 30 SeptResults

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

KZ Leasing & Finance Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Nandan Denim standalone net profit rises 32.14% in the June 2026 quarter

Business Standard, 12 AugResults

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

Zenlabs Ethica reports standalone nil net profit/loss in the March 2026 quarter

Business Standard, 30 MayResults

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

K Z Leasing & Finance Ltd Share Price

Business Today, 31 Jan

Top Performing Penny Stocks of August 2023

Equitymaster, 28 Aug

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 QualityStrong13.8/20

🟢Financial HealthStrong17/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak6/15

🟢ValuationAttractive11.8/15

🔴RiskHigh4/10

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

This thesis breaks if

✓EBITDA margin holds above -307%-304.6%
✗Return on equity stays above 8%-1.4%
✗Interest cover stays above 3x0.7x
✓Valuation vs its own median of 12.8x14.6x today