Morarka Finance Limited

Financial Services — Asset Management · BSE

₹58.00−₹0.60 (−1.02%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Morarka Finance Limited operates as a non-banking finance company in India. It provides services related to portfolio management, such as investment in securities, corporate advisory services, and advancing of loans.

IndustryAsset Management

SectorFinancial Services

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹75 reaches shareholders as profit, with ₹87 left at the operating level before interest, tax and depreciation.

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 -63% while net margin moved -17% 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-63%

Margin effect-17%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 28.4% a year
✗ Profit has declined at 32.6% a year

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

50/ 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

15.8x

3Y Median

12.7x

40 monthly readings · mean 12.5x · range 7.2x–20.4x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 24% above its 3y median of 12.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 17.0x.

vs. its own history

Expensive

12.7x median over 40 months · +24%

vs. sector peers

Fair

17.0x median of 4 peers · -7%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Short-term liquidity is tight
Current ratio of 0.35 — near-term obligations exceed near-term assets.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 18.1 points, from 105.5% to 87.4%.
🟡Profit is decliningFinancial
Net profit is down 69% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 105.5% to 87.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 24% 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.
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 85%✓ 87.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 1.2%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 12.7x✗ 15.8x 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

5 good · 3 neutral · 3 weak

Market Cap

₹26 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

15.8x

Fair

Fairly valued against the generic band

P/B Ratio

0.23x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.68

Profitable

Profitable on a per-share basis

ROE

1.2%

Weak

Weak capital efficiency

ROCE

1.4%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

97.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

171.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.59%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

78.5%

Good

Healthy core-business profitability

Net Margin

66.6%

Good

Strong bottom-line conversion

Current Ratio

0.35

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.25

Defensive

Steadier than the market

52W Range Position

26%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

61.4 / 62.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5 Cr	₹5 Cr	₹1 Cr	₹2 Cr	-28.4%
EBITDA	₹5 Cr	₹7 Cr	₹3 Cr	₹2 Cr	-32.7%
EBITDA Margin	105.5%	137.4%	315.4%	87.4%	—
PAT (Net Profit)	₹5 Cr	₹6 Cr	₹3 Cr	₹1 Cr	-32.6%
EPS	₹10.4	₹14.03	₹6.22	₹3.18	-32.6%
ROE	2.5%	3.9%	2.9%	1.2%	—
ROCE	2.9%	4.4%	3.3%	1.4%	—
Free Cash Flow	-₹1 Cr	-₹0 Cr	₹3 Cr	-₹0 Cr	—

🔴 Revenue has shrunk at 28.4% a year over 3 years.

🔴 EBITDA has shrunk at 32.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 105.5% to 87.4% over 3 years (-18.1 pts).

🔴 PAT (Net Profit) has shrunk at 32.6% a year over 3 years.

🔴 EPS has shrunk at 32.6% a year over 3 years.

🔴 ROE has fallen from 2.5% to 1.2% over 3 years (-1.2 pts).

🔴 ROCE has fallen from 2.9% to 1.4% over 3 years (-1.4 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹117 Cr

Total Liabilities

₹1 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.8%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

08 Jul 2026

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 positive1 mixed4 general

Morarka Finance Ltd Valuation Shifts Signal Renewed Price Attractiveness Amid Sector Challenges

MarketsMojo, 15 Oct

Morarka Finance Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Morarka Finance (BSE: MORARKFI): September Stock Signals

Kalkine India, 10 Sept

Bharat Electronics shares rise as firm bags order worth ₹533 crore; check details

Upstox, 13 OctOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Compare with MORARKA FI(D

Equitymaster, 26 Sept

Libord Finance Ltd. (LIBORDFIN) Share Price Surges 10% Today

Univest, 28 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

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

StrongBusiness Quality · Financial Health

MiddlingProfitability · Valuation

WeakGrowth · Risk

Points for each in the Score ↑

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 3 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 12.7x · see Key things to watch ↑