Mangalam Industrial Finance Limited

Financial Services — Credit Services · BSE

₹0.51₹0.00 (0.00%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, 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, 6:09 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 Mangalam Industrial Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Mangalam Industrial Finance Limited, a non-banking financial company, engages in investing and financing business in India. The company offers financial solutions for the purchase of electric two-wheelers. It also provides personal, business, and professional loans.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹27 Cr

How does it make money?

Turns over ₹27 Cr a year. Of every ₹100 of sales, about ₹-4 reaches shareholders as profit, with ₹-4 left at the operating level before interest, tax and depreciation.

EBITDA margin-3.6%

Net margin-3.7%

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.

ROCE-1.3%

ROE-1.4%

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 +1918% while net margin moved -99% 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+1918%

Margin effect-99%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✓ ROE has improved by 16.3 points over the period

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

85/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

1.21x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -358.9% to -3.6% over 3 years.
Return on equity is rising
ROE has improved from -17.7% to -1.4%.
Return on capital is rising
ROCE has improved from -16.8% to -1.3%.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 watch

🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 27% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -358.9% to -3.6%. 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
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 129% a year✓ 172.3% CAGR
Latest reported year was 397.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -6%✓ -3.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ -1.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.

Investment Checklist

4 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹73 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

1.21x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0

Loss-making

Negative earnings per share — the business is losing money

ROE

-1.4%

Weak

Weak capital efficiency

ROCE

-1.3%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

397.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

125.0%

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

-₹46 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹0.51

Operating Margin

49.2%

Good

Healthy core-business profitability

Net Margin

-0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

75.72

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.14

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.5 / 0.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹3 Cr	₹4 Cr	₹27 Cr	+172.3%
EBITDA	-₹5 Cr	₹0 Cr	₹2 Cr	-₹1 Cr	—
EBITDA Margin	-358.9%	15.1%	57.9%	-3.6%	—
PAT (Net Profit)	-₹5 Cr	₹0 Cr	₹1 Cr	-₹1 Cr	—
EPS	₹-0.04	₹0	₹0.01	₹-0.01	—
ROE	-17.7%	0.7%	4.2%	-1.4%	—
ROCE	-16.8%	0.9%	6.7%	-1.3%	—
Free Cash Flow	₹4 Cr	-₹11 Cr	-₹0 Cr	-₹46 Cr	—

🟢 Revenue has grown at 172.3% a year over 3 years.

🟢 EBITDA Margin has risen from -358.9% to -3.6% over 3 years (+355.4 pts).

🟢 ROE has risen from -17.7% to -1.4% over 3 years (+16.3 pts).

🟢 ROCE has risen from -16.8% to -1.3% over 3 years (+15.4 pts).

🔴 Free Cash Flow has turned negative, from ₹4 Cr to -₹46 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹76 Cr

Total Liabilities

₹2 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹46 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

42.4%

Corporate Actions

Ex-Dividend Date

28 Jan 2025

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 positive1 mixed4 general

Mangalam Industrial Finance Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Mangalam Industrial Finance standalone net profit rises 276.47% in the June 2026 quarter

Business Standard, 14 AugResults

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

Mangalam Industrial Finance - 13 penny stocks plunge up to 65% in 3 months. Are you affected?

The Economic Times, 17 May

Mangalam Industrial Finance closes trading window ahead of Q1FY27 results

scanx.trade, 23 JunResults

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

Mangalam Industrial Finance (BSE:MANGIND): Financial Performance and Key Triggers

Kalkine India, 08 Sept

Mangalam Industrial Finance Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🔴Business QualityWeak8.5/20

🟢Financial HealthStrong17/20

🟢GrowthStrong18.4/20

🔴ProfitabilityWeak5/15

🟢ValuationAttractive12.8/15

🔴RiskHigh4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 129% a year172.3% CAGR
✓EBITDA margin holds above -6%-3.6%
✗Return on equity stays above 8%-1.4%