Manba Finance Limited

Financial Services — Credit Services · NSE

₹145.50+₹4.86 (+3.46%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by 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, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Manba Finance Limited, a non-banking finance company, provides financial solutions in India. The company offers new two and three-wheeler, electric two and three-wheeler, and pre-owned two-wheeler, used car, and car loans. It also provides personal and small business loans.

IndustryCredit Services

SectorFinancial Services

Employees1,802

Annual revenue₹313 Cr

How does it make money?

Turns over ₹313 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 1,802 employees supports ₹17.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹17.4 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 +151% while net margin moved +9% 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+151%

Margin effect+9%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.35 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

78/ 100

Good

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

Valuation

64/ 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

15.0x

2Y Median

18.3x

27 monthly readings · mean 19.2x · range 13.4x–26.2x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 18% below its 2y median of 18.3x. 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 is priced broadly in line with the peer median of 17.0x.

vs. its own history

Fair

18.3x median over 27 months · -18%

vs. sector peers

Fair

17.0x median of 4 peers · -12%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

22.9x

PEG

0.38

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention0

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

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

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 27% a year✓ 35.9% CAGR
Latest reported year was 19.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 27%✓ 29.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 9%✓ 11.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 18.3x✓ 15.0x 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

4 good · 4 neutral · 3 weak

Market Cap

₹731 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.0x

Cheap

Cheap against the generic band

P/B Ratio

1.79x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.72

Profitable

Profitable on a per-share basis

ROE

11.1%

Moderate

Moderate capital efficiency

ROCE

5.7%

Weak

Low return on total capital employed

Debt/Equity

3.80x

High

High leverage

Revenue Growth (YoY)

19.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

36.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.86%

Modest

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

Free Cash Flow

-₹379 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

47.8%

Good

Healthy core-business profitability

Net Margin

33.8%

Good

Strong bottom-line conversion

Current Ratio

2.10

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.35

Defensive

Steadier than the market

52W Range Position

85%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

139.8 / 134.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

61.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹125 Cr	₹168 Cr	₹238 Cr	₹313 Cr	+35.9%
EBITDA	₹37 Cr	₹44 Cr	₹74 Cr	₹92 Cr	+35.3%
EBITDA Margin	29.8%	26.3%	31.0%	29.4%	—
PAT (Net Profit)	₹17 Cr	₹31 Cr	₹38 Cr	₹45 Cr	+39.9%
EPS	₹3.3	₹6.21	₹7.52	₹9.03	+39.9%
ROE	9.8%	15.5%	10.2%	11.1%	—
ROCE	6.0%	4.1%	6.2%	5.7%	—
Total Debt	₹608 Cr	₹763 Cr	₹1,084 Cr	₹1,556 Cr	+36.8%
Free Cash Flow	-₹125 Cr	-₹143 Cr	-₹323 Cr	-₹379 Cr	—

🟢 Revenue has grown at 35.9% a year over 3 years.

🟢 EBITDA has grown at 35.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 29.4% over 3 years.

🟢 PAT (Net Profit) has grown at 39.9% a year over 3 years.

🟢 EPS has grown at 39.9% a year over 3 years.

🟢 ROE has risen from 9.8% to 11.1% over 3 years (+1.2 pts).

🟡 ROCE has held roughly flat at 5.7% over 3 years.

🔴 Total Debt has grown at 36.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,979 Cr

Total Liabilities

₹1,569 Cr

Cash & Equivalents

₹178 Cr

Operating Cash Flow

-₹378 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.7%

Corporate Actions

Dividend Rate

₹1.25

Ex-Dividend Date

18 Sept 2026

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

Manba Finance Limited: Rs 100 Crore SBI Loan and Q4FY26 SEBI Compliance Update

scanx.trade, 18 Oct

Manba Finance Limited's Board Approves Fundraise of ₹99.99 Crore through a Preferential Issue; Marquee Family Offices and Investors Come on Board

Business Standard, 24 Sept

Manba Finance vs Nifty 50: Share Price Performance Compared

Univest, 06 Oct

Manba Finance Approves ₹99.99 Crore Fundraising Through Special Share Issue

Sahi, 23 Sept

Manba Finance Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Manba Finance Expands EV, Rural Financing Partnerships

HDFC Sky, 08 JunPartnership

🟡Mixed / dependsA partnership, whose value depends entirely on terms that a headline will not carry. Worth reading the filing before assuming either way.

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

StrongBusiness Quality · Financial Health · Growth · Profitability · 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 ↑