Minolta Finance Limited

Financial Services — Asset Management · BSE

₹1.24+₹0.05 (+4.20%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

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. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Minolta Finance Limited, a non-banking financial company, engages in lending and investment activities in India.

IndustryAsset Management

SectorFinancial Services

Employees4

Annual revenue₹12 Cr

How does it make money?

Turns over ₹12 Cr a year. Of every ₹100 of sales, about ₹-12 reaches shareholders as profit, with ₹94 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹2.99 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.99 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. 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 +1897% while net margin moved -239% 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+1897%

Margin effect-239%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 15.8 points over the period

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

78/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

0.8x

3Y Median

242.3x

40 monthly readings · mean 232.2x · range 137.4x–366.3x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 100% below its 3y median of 242.3x. 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 95% below the peer median of 17.0x.

vs. its own history

Cheap

242.3x median over 40 months · -100%

vs. sector peers

Cheap

17.0x median of 4 peers · -95%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

21.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 11.6% to 93.6% over 3 years.
Return on capital is rising
ROCE has improved from 0.6% to 4.1%.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 0.5% to -15.3% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 2 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.8x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 11.6% to 93.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 100% 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 95% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 0.5% to -15.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 128% a year✓ 171.3% CAGR
Latest reported year was 139.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 92%✓ 93.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ -15.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 0.8x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 242.3x✓ 0.8x 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

6 good · 2 neutral · 3 weak

Market Cap

₹62 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

0.8x

Cheap

Cheap against the generic band

P/B Ratio

0.87x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.58

Profitable

Profitable on a per-share basis

ROE

-15.3%

Weak

Weak capital efficiency

ROCE

4.1%

Weak

Low return on total capital employed

Debt/Equity

19.11x

High

High leverage

Revenue Growth (YoY)

139.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

242.5%

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

₹10 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

89.1%

Good

Healthy core-business profitability

Net Margin

-2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1.3 / 1.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹1 Cr	₹12 Cr	+171.3%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹11 Cr	+444.2%
EBITDA Margin	11.6%	9.2%	26.6%	93.6%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	-₹1 Cr	—
EPS	₹0.01	₹0.01	—	₹-0.12	—
ROE	0.5%	0.5%	0.1%	-15.3%	—
ROCE	0.6%	0.6%	0.2%	4.1%	—
Total Debt	₹1 Cr	₹1 Cr	₹48 Cr	₹178 Cr	+478.1%
Free Cash Flow	-₹4 Cr	-₹0 Cr	₹0 Cr	₹10 Cr	—

🟢 Revenue has grown at 171.3% a year over 3 years.

🟢 EBITDA has grown at 444.2% a year over 3 years.

🟢 EBITDA Margin has risen from 11.6% to 93.6% over 3 years (+82.0 pts).

🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹1 Cr.

🔴 EPS has turned negative, from ₹0.01 to ₹-0.12.

🔴 ROE has fallen from 0.5% to -15.3% over 3 years (-15.8 pts).

🟢 ROCE has risen from 0.6% to 4.1% over 3 years (+3.6 pts).

🔴 Total Debt has grown at 478.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹190 Cr

Total Liabilities

₹181 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

8.2%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 mixed5 general

Top 65 Stocks Under 10 Rupees To Buy In October 2026 | High Potential Picks

Samco, 17 Oct

Minolta Finance approves housing subsidiary, reclassifies promoters

scanx.trade, 13 Oct

Minolta Finance Ltd is Rated Sell

MarketsMojo, 06 Oct

Minolta Finance Q1 FY27 Results: Revenue Rs 4 Cr, PAT Rs 0.47 Cr and Key Highlights

Univest, 12 AugResults

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

Minolta Finance rights issue fully subscribed, trading starts Sept 1

scanx.trade, 01 Sept

Minolta Finance Limited Approves Appointment of Forum Gada as Managing Director

marketscreener.com, 30 Sept

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

StrongGrowth · Valuation

MiddlingBusiness Quality

WeakFinancial Health · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x · see Key things to watch ↑