Mangal Credit and Fincorp Limited

Financial Services — Credit Services · NSE

₹217.02−₹4.01 (−1.81%)

DalalBaazaar Score

70 / 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, 6:10 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 Mangal Credit and Fincorp Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mangal Credit and Fincorp Limited operates as a non-banking financial company in India. The company offers small and medium enterprises, gold, and personal loans, as well as loan against property.

IndustryCredit Services

SectorFinancial Services

Employees142

Annual revenue₹68 Cr

How does it make money?

Turns over ₹68 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹37 left at the operating level before interest, tax and depreciation. Each of its 142 employees supports ₹47.7 lakh of revenue a year, the signature of a people-led business.

EBITDA margin37.4%

Net margin22.6%

Revenue / employee₹47.7 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.

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.

ROCE6.4%

ROE8.9%

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 +225% while net margin moved -40% 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+225%

Margin effect-40%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 25.4x already prices in growth
• P/E is close to its own historical median of 29.4x

Quality vs. Valuation

Company Quality

75/ 100

Good

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

Valuation

46/ 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

25.4x

2Y Median

29.4x

28 monthly readings · mean 29.5x · range 25.3x–37.3x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 14% below its 2y median of 29.4x. 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 50% above the peer median of 17.0x.

vs. its own history

Fair

29.4x median over 28 months · -14%

vs. sector peers

Expensive

17.0x median of 4 peers · +50%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

25.4x

P/B

2.65x

EV/EBITDA

30.1x

PEG

1.03

Dividend Yield

0.35%

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 56.0% to 37.4% over 3 years.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 18.6 points, from 56.0% to 37.4%.

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?

Margins are being competed away
EBITDA margin has fallen from 56.0% to 37.4%. 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 50% above the peer median. That premium needs a reason that persists, or it closes.
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 36% a year✓ 48.1% CAGR
Latest reported year was 53.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 35%✓ 37.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✓ 8.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 29.4x✓ 25.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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

3 good · 5 neutral · 3 weak

Market Cap

₹458 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

25.4x

Fair

Fairly valued against the generic band

P/B Ratio

2.65x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.54

Profitable

Profitable on a per-share basis

ROE

8.9%

Moderate

Moderate capital efficiency

ROCE

6.4%

Weak

Low return on total capital employed

Debt/Equity

1.92x

High

High leverage

Revenue Growth (YoY)

53.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

80.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.35%

Modest

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

Free Cash Flow

-₹115 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹217.02

Operating Margin

79.8%

Good

Healthy core-business profitability

Net Margin

23.2%

Good

Strong bottom-line conversion

Current Ratio

1.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.01

Defensive

Steadier than the market

52W Range Position

48%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

223.5 / 227.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹21 Cr	₹33 Cr	₹49 Cr	₹68 Cr	+48.1%
EBITDA	₹12 Cr	₹16 Cr	₹20 Cr	₹25 Cr	+29.5%
EBITDA Margin	56.0%	49.0%	42.1%	37.4%	—
PAT (Net Profit)	₹8 Cr	₹11 Cr	₹13 Cr	₹15 Cr	+24.6%
EPS	₹4.1	₹5.45	₹6.58	₹7.25	+20.9%
ROE	7.1%	8.3%	9.3%	8.9%	—
ROCE	7.4%	8.2%	9.1%	6.4%	—
Total Debt	₹87 Cr	₹138 Cr	₹200 Cr	₹332 Cr	+56.0%
Free Cash Flow	-₹46 Cr	-₹54 Cr	-₹50 Cr	-₹115 Cr	—

🟢 Revenue has grown at 48.1% a year over 3 years.

🟢 EBITDA has grown at 29.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 56.0% to 37.4% over 3 years (-18.6 pts).

🟢 PAT (Net Profit) has grown at 24.6% a year over 3 years.

🟢 EPS has grown at 20.9% a year over 3 years.

🟢 ROE has risen from 7.1% to 8.9% over 3 years (+1.8 pts).

🔴 ROCE has fallen from 7.4% to 6.4% over 3 years (-1.0 pts).

🔴 Total Debt has grown at 56.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹517 Cr

Total Liabilities

₹344 Cr

Total Debt

₹332 Cr

Cash & Equivalents

₹27 Cr

Operating Cash Flow

-₹114 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.6%

Corporate Actions

Dividend Rate

₹0.75

Ex-Dividend Date

11 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 positive2 mixed3 general

Mangal Credit and Fincorp Share Price Target 2026: Rs 96 Analyst Forecast

Univest, 23 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

If EPS Growth Is Important To You, Mangal Credit and Fincorp (NSE:MANCREDIT) Presents An Opportunity

Simply Wall Street, 31 May

Mangal Credit and Fincorp Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Mangal Credit and Fincorp vs Nifty 50: Returns Compared

Univest, 06 Oct

Mangal Credit & Fincorp declares voting results of 64th AGM

scanx.trade, 22 SeptResults

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

Mangal Credit & Fincorp standalone net profit rises 89.67% in the June 2026 quarter

Business Standard, 07 AugResults

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

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 QualityStrong15.9/20

🟢Financial HealthStrong17/20

🟢GrowthStrong14.7/20

🟡ProfitabilityModerate8.9/15

🟡ValuationFair8.1/15

🟡RiskModerate5.4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 36% a year48.1% CAGR
✓EBITDA margin holds above 35%37.4%
✓Return on equity stays above 8%8.9%
✓Valuation vs its own median of 29.4x25.4x today