MKVentures Capital Limited

Financial Services — Credit Services · BSE

₹1,019.90+₹63.40 (+6.63%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

MKVentures Capital Limited, a non-banking financial company, engages in the financing and investment business in India. The company operates through Loan and Investment, Consultancy, and Others segment.

IndustryCredit Services

SectorFinancial Services

Employees3

Annual revenue₹5 Cr

How does it make money?

Turns over ₹5 Cr a year. Of every ₹100 of sales, about ₹203 reaches shareholders as profit, with ₹278 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹1.74 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin278.5%

Net margin202.9%

Revenue / employee₹1.74 Cr

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.

ROCE12.6%

ROE9.4%

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 -51% while net margin moved +33% 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-51%

Margin effect+33%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 21.2% a year
✗ Profit has declined at 13.5% a year
✗ Profit fell 79.2% in the latest year

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

26/ 100

Expensive

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

55.6x

3Y Median

35.5x

40 monthly readings · mean 36.9x · range 22.6x–60.6x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 57% above its 3y median of 35.5x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 227% above the peer median of 17.0x.

vs. its own history

Expensive

35.5x median over 40 months · +57%

vs. sector peers

Expensive

17.0x median of 4 peers · +227%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

55.6x

P/B

3.46x

EV/EBITDA

26.9x

PEG

—

Dividend Yield

0.02%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 204.3% to 278.5% over 3 years.
Return on capital is rising
ROCE has improved from 6.7% to 12.6%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 51.4% to 9.4% — each rupee of shareholder capital earns less than it did.
Valuation above its historical average
At 55.6x the stock trades 57% above its own median of 35.5x.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 35% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 204.3% to 278.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

The price already assumes success
The stock trades 57% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 51.4% to 9.4%. 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.
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 276%✓ 278.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✓ 9.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 35.5x✗ 55.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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

2 good · 7 neutral · 2 weak

Market Cap

₹392 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

55.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.46x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹18.34

Profitable

Profitable on a per-share basis

ROE

9.4%

Moderate

Moderate capital efficiency

ROCE

12.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

1.0%

Modest

Modest growth

Profit Growth (YoY)

-79.2%

Falling

Profits are shrinking

Dividend Yield

0.02%

Modest

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

Free Cash Flow

₹10 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,019.9

Operating Margin

33.8%

Good

Healthy core-business profitability

Net Margin

40.2%

Good

Strong bottom-line conversion

Current Ratio

57.66

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.07

Defensive

Steadier than the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1015.4 / 1032.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11 Cr	₹28 Cr	₹18 Cr	₹5 Cr	-21.2%
EBITDA	₹22 Cr	₹35 Cr	₹16 Cr	₹15 Cr	-12.7%
EBITDA Margin	204.3%	122.9%	87.0%	278.5%	—
PAT (Net Profit)	₹16 Cr	₹21 Cr	₹9 Cr	₹11 Cr	-13.5%
EPS	₹45.89	₹55.46	₹24.69	₹27.59	-15.6%
ROE	51.4%	22.6%	9.2%	9.4%	—
ROCE	6.7%	30.5%	12.8%	12.6%	—
Free Cash Flow	-₹259 Cr	₹257 Cr	₹33 Cr	₹10 Cr	—

🔴 Revenue has shrunk at 21.2% a year over 3 years.

🔴 EBITDA has shrunk at 12.7% a year over 3 years.

🟢 EBITDA Margin has risen from 204.3% to 278.5% over 3 years (+74.2 pts).

🔴 PAT (Net Profit) has shrunk at 13.5% a year over 3 years.

🔴 EPS has shrunk at 15.6% a year over 3 years.

🔴 ROE has fallen from 51.4% to 9.4% over 3 years (-42.0 pts).

🟢 ROCE has risen from 6.7% to 12.6% over 3 years (+5.9 pts).

🟢 Free Cash Flow has turned positive, from -₹259 Cr to ₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹115 Cr

Total Liabilities

₹2 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

4.3%

Insider Holding

84.4%

Corporate Actions

Dividend Rate

₹0.25

Ex-Dividend Date

05 Jun 2026

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 negative5 general

MKVentures Capital Share Price news: fundamentals and peers

Univest, 17 Sept

MKVentures Capital Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

MKVentures Capital Q1 Results: Net profit falls 73% YoY to ₹115.78 lakh

scanx.trade, 07 AugResults

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

Mkventures Capital - Madhusudan Kela’s portfolio: Top 5 holdings and how they performed in August

The Economic Times, 03 Sept

Compare IKAB SEC. with

Equitymaster, 25 Sept

MK Ventures Capital approves Ajay Shah as MD & CEO for five years

scanx.trade, 06 Jul

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

🟢Business QualityStrong17.5/20

🟢Financial HealthStrong17/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate7.5/15

🔴ValuationDemanding4.9/15

🟡RiskModerate5.2/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓EBITDA margin holds above 276%278.5%
✓Return on equity stays above 8%9.4%
✗Valuation vs its own median of 35.5x55.6x today