Mega Corporation Limited

Financial Services — Credit Services · BSE

₹2.21−₹0.08 (−3.49%)

DalalBaazaar Score

69 / 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mega Corporation Limited operates as a non-banking financial company in India. The company offers loans and leasing, and financial services. It also invests in securities.

IndustryCredit Services

SectorFinancial Services

Employees9

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹83.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹83.3 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 +136% while net margin moved +70% 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+136%

Margin effect+70%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.30 — 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

72/ 100

Good

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

Valuation

59/ 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

31.6x

3Y Median

163.7x

40 monthly readings · mean 164.4x · range 48.2x–394.4x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 81% below its 3y median of 163.7x. 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 86% above the peer median of 17.0x.

vs. its own history

Cheap

163.7x median over 40 months · -81%

vs. sector peers

Expensive

17.0x median of 4 peers · +86%

vs. generic bands

Fair

15x–35x

EV/EBITDA

51.9x

PEG

0.53

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 1.1% to 3.4%.
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 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 21% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 81% 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.
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?

A premium to the sector to defend
It trades 86% 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

1Revenue growth stays above 25% a year✓ 33.2% CAGR
Latest reported year was 27.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 22.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 2.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 163.7x✓ 31.6x 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

4 good · 4 neutral · 3 weak

Market Cap

₹44 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.6x

Fair

Fairly valued against the generic band

P/B Ratio

1.20x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.07

Profitable

Profitable on a per-share basis

ROE

2.3%

Weak

Weak capital efficiency

ROCE

3.4%

Weak

Low return on total capital employed

Debt/Equity

1.37x

Moderate

Moderate leverage

Revenue Growth (YoY)

27.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

266.0%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

56.8%

Good

Healthy core-business profitability

Net Margin

10.0%

Good

Strong bottom-line conversion

Current Ratio

1.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2.4 / 2.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3 Cr	₹4 Cr	₹6 Cr	₹7 Cr	+33.2%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹2 Cr	+36.0%
EBITDA Margin	21.1%	25.2%	14.6%	22.5%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+59.1%
EPS	₹0.01	₹0.02	₹0.02	₹0.05	+49.4%
ROE	0.9%	1.1%	0.7%	2.6%	—
ROCE	1.1%	1.9%	1.0%	3.4%	—
Total Debt	₹13 Cr	₹29 Cr	₹41 Cr	₹44 Cr	+50.4%
Free Cash Flow	₹5 Cr	-₹14 Cr	-₹22 Cr	-₹1 Cr	—

🟢 Revenue has grown at 33.2% a year over 3 years.

🟢 EBITDA has grown at 36.0% a year over 3 years.

🟢 EBITDA Margin has risen from 21.1% to 22.5% over 3 years (+1.3 pts).

🟢 PAT (Net Profit) has grown at 59.1% a year over 3 years.

🟢 EPS has grown at 49.4% a year over 3 years.

🟢 ROE has risen from 0.9% to 2.6% over 3 years (+1.6 pts).

🟢 ROCE has risen from 1.1% to 3.4% over 3 years (+2.3 pts).

🔴 Total Debt has grown at 50.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹5 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹82 Cr

Total Liabilities

₹46 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.5%

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

2 mixed1 negative3 general

Mega Corporation Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 08 Oct

Mega Corporation Share Price Fall: Key Reasons & Share Price Target

Univest, 25 FebPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Mega Corporation - These 12 penny stocks rose up to 432% in FY26; 3 turned multibaggers. Did you own any?

The Economic Times, 26 Mar

Mega Corporation Q1 Results: Net profit falls 31% YoY to ₹19.31 lakh

scanx.trade, 12 AugResults

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

Mega Corporation Ltd enters into a strategic digital lending partnership with Rajasthan Financial Services Delivery Ltd (RFSDL)

Dalal Street Investment Journal, 21 JanPartnership

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

Mega Corporation Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Valuation

MiddlingProfitability

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 of 4 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑