Moongipa Capital Finance Limited

Financial Services — Credit Services · BSE

₹20.02−₹0.88 (−4.21%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently 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 Moongipa Capital Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Moongipa Capital Finance Limited, a non-banking finance company, provides a suite of financing products in India.

IndustryCredit Services

SectorFinancial Services

Employees8

Annual revenue₹10 Cr

How does it make money?

Turns over ₹10 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 8 employees supports ₹1.31 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.31 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.

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 +528% while net margin moved -108% 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+528%

Margin effect-108%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.24 — 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

65/ 100

Good

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

Valuation

37/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

29.9x

2Y Median

6.0x

28 monthly readings · mean 9.7x · range 4.3x–26.5x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 398% above its 2y median of 6.0x. 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 76% above the peer median of 17.0x.

vs. its own history

Expensive

6.0x median over 28 months · +398%

vs. sector peers

Expensive

17.0x median of 4 peers · +76%

vs. generic bands

Fair

15x–35x

EV/EBITDA

20.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -138.7% to 11.1% over 3 years.
Return on equity is rising
ROE has improved from -32.6% to 3.1%.
Return on capital is rising
ROCE has improved from -48.2% to 6.1%.

🔴 What Needs Attention2

Receivables growing faster than sales
Receivables are up 819% against revenue growth of 528% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 748% against revenue growth of 528% — stock may not be moving.

Red Flags

2 items require attention · 2 watch

🟡Interest coverage is deterioratingFinancial
Cover has fallen from 27.3x to 2.1x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 91% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -138.7% to 11.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 398% 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.
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 63% a year✓ 84.5% CAGR
Latest reported year was 44.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 3.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 2.1x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 6.0x✗ 29.9x 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 · 3 neutral · 4 weak

Market Cap

₹18 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.9x

Fair

Fairly valued against the generic band

P/B Ratio

0.78x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.67

Profitable

Profitable on a per-share basis

ROE

3.1%

Weak

Weak capital efficiency

ROCE

6.1%

Weak

Low return on total capital employed

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

44.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-11.7%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

27.5%

Good

Healthy core-business profitability

Net Margin

5.1%

Average

Average bottom-line conversion

Current Ratio

4.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.24

Defensive

Steadier than the market

52W Range Position

73%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

20.2 / 19.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹9 Cr	₹7 Cr	₹10 Cr	+84.5%
EBITDA	-₹2 Cr	₹2 Cr	₹2 Cr	₹1 Cr	—
EBITDA Margin	-138.7%	21.9%	25.8%	11.1%	—
PAT (Net Profit)	-₹2 Cr	₹2 Cr	₹1 Cr	₹1 Cr	—
EPS	₹-3.17	₹3.63	₹3.01	₹0.79	—
ROE	-32.6%	27.2%	6.0%	3.1%	—
ROCE	-48.2%	29.9%	9.4%	6.1%	—
Total Debt	₹0 Cr	—	₹7 Cr	₹5 Cr	+253.8%
Free Cash Flow	-₹1 Cr	-₹2 Cr	-₹18 Cr	-₹0 Cr	—

🟢 Revenue has grown at 84.5% a year over 3 years.

🟢 EBITDA has turned positive, from -₹2 Cr to ₹1 Cr.

🟢 EBITDA Margin has risen from -138.7% to 11.1% over 3 years (+149.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹2 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-3.17 to ₹0.79.

🟢 ROE has risen from -32.6% to 3.1% over 3 years (+35.7 pts).

🟢 ROCE has risen from -48.2% to 6.1% over 3 years (+54.3 pts).

🔴 Total Debt has grown at 253.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹29 Cr

Total Liabilities

₹6 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.8%

Corporate Actions

Ex-Dividend Date

13 Aug 1996

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

Moongipa Capital Finance Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Moongipa Capital Finance adopts FY26 financials at 39th AGM

scanx.trade, 24 Sept

Moongipa Capita Standalone June 2026 Net Sales at Rs 4.31 crore, up 39.29% Y-o-Y

Moneycontrol.com, 10 Aug

Moongipa Capital promoter acquires 40,000 shares in open market

scanx.trade, 25 Aug

GTL Infrastructure reports standalone net profit of Rs 69.39 crore in the June 2026 quarter

Business Standard, 06 AugResults

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

Moongipa Capital Finance enters digital lending pact with Billion Careers

scanx.trade, 25 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

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

3 of 5 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x; Valuation vs its own median of 6.0x · see Key things to watch ↑