Margo Finance Limited

Financial Services — Credit Services · BSE

₹60.74−₹3.25 (−5.08%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by 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. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

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 Margo Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Margo Finance Limited, a non-deposit accepting non-banking financial company, engages in investment activities in India. The company was formerly known as Indocount Finance Limited and changed its name to Margo Finance Limited in March 2010.

IndustryCredit Services

SectorFinancial Services

Employees2

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹55 reaches shareholders as profit, with ₹81 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹97.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹97.2 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%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.40 — 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

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

56/ 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

22.7x

2Y Median

101.8x

28 monthly readings · mean 108.3x · range 26.0x–257.0x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 78% below its 2y median of 101.8x. 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 34% above the peer median of 17.0x.

vs. its own history

Cheap

101.8x median over 28 months · -78%

vs. sector peers

Expensive

17.0x median of 4 peers · +34%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.2x

PEG

—

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 1148.4 points, from 1229.7% to 81.3%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 78% 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 1229.7% to 81.3%. 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 34% 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

1EBITDA margin holds above 79%✓ 81.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 0.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 101.8x✓ 22.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 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 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

₹28 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.7x

Fair

Fairly valued against the generic band

P/B Ratio

0.22x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.67

Profitable

Profitable on a per-share basis

ROE

0.9%

Weak

Weak capital efficiency

ROCE

1.0%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

176.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

640.0%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

63.1%

Good

Healthy core-business profitability

Net Margin

55.6%

Good

Strong bottom-line conversion

Current Ratio

3652.88

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.40

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

63.8 / 65.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	-₹0 Cr	₹1 Cr	₹1 Cr	₹2 Cr	—
EBITDA	-₹0 Cr	₹0 Cr	₹1 Cr	₹2 Cr	—
EBITDA Margin	1229.7%	54.8%	73.2%	81.3%	—
PAT (Net Profit)	-₹1 Cr	₹0 Cr	₹0 Cr	₹1 Cr	—
EPS	₹-1.25	₹0.53	₹0.76	₹2.34	—
ROE	-1.0%	0.1%	0.3%	0.9%	—
ROCE	-0.5%	0.2%	0.6%	1.0%	—
Free Cash Flow	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+296.2%

🟢 Revenue has turned positive, from -₹0 Cr to ₹2 Cr.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹2 Cr.

🔴 EBITDA Margin has fallen from 1229.7% to 81.3% over 3 years (-1148.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹1 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-1.25 to ₹2.34.

🟢 ROE has risen from -1.0% to 0.9% over 3 years (+1.8 pts).

🟢 ROCE has risen from -0.5% to 1.0% over 3 years (+1.5 pts).

🟢 Free Cash Flow has grown at 296.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹162 Cr

Total Liabilities

₹37 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

56.0%

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 mixed1 negative2 general

Swati Projects Ltd. (SWATIPRO) Share Price Surges 8.2% Today

Univest, 28 JulPrice 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.

Grauer & Weil (India) consolidated net profit declines 8.71% in the June 2026 quarter

Business Standard, 04 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Indo Count promoters declare no encumbrance on shares in FY26

scanx.trade, 19 Jun

Q1 Results Today: Bharti Airtel, ONGC, Nykaa, Pidilite Industries, Marico, Shriram Finance Among 100+ Companies Reporting Earnings

NDTV Profit, 04 AugResults

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

Margo Finance Ltd Share Price

Business Today, 31 Jan

Styrenix Performance Materials consolidated net profit rises 166.37% in the June 2026 quarter

Business Standard, 04 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth · Profitability

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

1 of 3 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑