MAS Financial Services Limited

Financial Services — Credit Services · NSE

₹264.00−₹1.90 (−0.71%)

DalalBaazaar Score

80 / 100

🟢 Strong

Verdict

REASONABLE

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, 6:50 pm

Understanding the Business

Company site ↗

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

What does this company do?

MAS Financial Services Limited, a non-banking finance company (NBFC), provides retail financing services for individuals and businesses in India. It operates through Financing Activities and Others segments.

IndustryCredit Services

SectorFinancial Services

Employees1,933

Annual revenue₹1,532 Cr

How does it make money?

Turns over ₹1,532 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 1,933 employees supports ₹79.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹79.2 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%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 20.7% and earnings to grow about 26.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+20.7%

Est. earnings growth+26.3%

Analysts4

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 +98% while net margin moved -8% 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+98%

Margin effect-8%

DalalBaazaar Score

80/ 100

Strong

Weighted across six categories. Every point is explained below.

✓ Beta of 0.28 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

83/ 100

Excellent

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

Valuation

75/ 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.

Historical Valuation

Current P/E

12.1x

3Y Median

18.6x

40 monthly readings · mean 19.4x · range 12.9x–27.2x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 3y median of 18.6x. 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 29% below the peer median of 17.0x.

vs. its own history

Cheap

18.6x median over 40 months · -35%

vs. sector peers

Cheap

17.0x median of 4 peers · -29%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

35.9x

PEG

0.55

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

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.2 points, from 34.3% to 27.0%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 35% 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.
Cheaper than its peers
It trades 29% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 34.3% to 27.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 19% a year✓ 25.5% CAGR
Latest reported year was 27.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 25%✓ 27.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 10%✓ 12.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 18.6x✓ 12.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹4,790 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.1x

Cheap

Cheap against the generic band

P/B Ratio

1.61x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹21.73

Profitable

Profitable on a per-share basis

ROE

12.5%

Moderate

Moderate capital efficiency

ROCE

6.2%

Weak

Low return on total capital employed

Debt/Equity

3.40x

High

High leverage

Revenue Growth (YoY)

27.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

24.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.76%

Modest

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

Free Cash Flow

-₹1,878 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

8.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

56.0%

Good

Healthy core-business profitability

Net Margin

40.5%

Good

Strong bottom-line conversion

Current Ratio

1.54

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

275.2 / 288.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹775 Cr	₹1,008 Cr	₹1,271 Cr	₹1,532 Cr	+25.5%
EBITDA	₹265 Cr	₹267 Cr	₹361 Cr	₹414 Cr	+16.0%
EBITDA Margin	34.3%	26.5%	28.4%	27.0%	—
PAT (Net Profit)	₹203 Cr	₹251 Cr	₹310 Cr	₹371 Cr	+22.2%
EPS	₹12.39	₹15.31	₹17.48	₹20.46	+18.2%
ROE	13.4%	14.1%	11.9%	12.5%	—
ROCE	7.0%	5.7%	5.4%	6.2%	—
Total Debt	₹5,875 Cr	₹7,124 Cr	₹9,181 Cr	₹10,317 Cr	+20.6%
Free Cash Flow	-₹1,437 Cr	-₹1,388 Cr	-₹1,153 Cr	-₹1,878 Cr	—

🟢 Revenue has grown at 25.5% a year over 3 years.

🟢 EBITDA has grown at 16.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 34.3% to 27.0% over 3 years (-7.2 pts).

🟢 PAT (Net Profit) has grown at 22.2% a year over 3 years.

🟢 EPS has grown at 18.2% a year over 3 years.

🟡 ROE has held roughly flat at 12.5% over 3 years.

🟡 ROCE has held roughly flat at 6.2% over 3 years.

🔴 Total Debt has grown at 20.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹13,747 Cr

Total Liabilities

₹10,710 Cr

Cash & Equivalents

₹224 Cr

Operating Cash Flow

-₹1,787 Cr

Capex

-₹92 Cr

Shareholding (proxy)

Institutional Holding

17.7%

Insider Holding

70.8%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

25 Aug 2026

Analyst Consensus

Recommendations

6 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹400

+51.5% vs CMP

Target Range

₹350 – ₹450

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

MAS Financial Services Stock Signals to Watch This Week

Univest, 24 Sept

Do MAS Financial Services' (NSE:MASFIN) Earnings Warrant Your Attention?

Simply Wall Street, 18 MayResults

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

Buy MAS Financial Services; target of Rs 385: Motilal Oswal

Moneycontrol.com, 13 Jul

MAS Financial Services Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

MAS Financial Services Secures ₹140 Crore Capital Via 14,000 NCDs At 8.70% Yield

Sahi, 24 Jun

Can MAS Financial sustain its outperformance on strong growth momentum?

The Economic Times, 20 Feb

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.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

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.

All 4 tripwires holding · see Key things to watch ↑