Morgan Ventures Limited

Financial Services — Asset Management · BSE

₹41.50−₹0.71 (−1.68%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very 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, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:26 pm

Understanding the Business

Company site ↗

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

What does this company do?

Morgan Ventures Limited operates as a non-banking finance company in India.

IndustryAsset Management

SectorFinancial Services

Employees2

Annual revenue₹24 Cr

How does it make money?

Turns over ₹24 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹102 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹12.03 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹12.03 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 +196% while net margin moved -79% 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+196%

Margin effect-79%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 4.4% is weak
✗ ROE has fallen by 7.8 points over the period

Quality vs. Valuation

Company Quality

59/ 100

Average

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 reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

55.3x

3Y Median

6.4x

40 monthly readings · mean 6.4x · range 1.4x–12.0x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 764% above its 3y median of 6.4x. 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 226% above the peer median of 17.0x.

vs. its own history

Expensive

6.4x median over 40 months · +764%

vs. sector peers

Expensive

17.0x median of 4 peers · +226%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

9.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 17.9% to 22.6%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 12.2% to 4.4% — each rupee of shareholder capital earns less than it did.
Short-term liquidity is tight
Current ratio of 0.06 — near-term obligations exceed near-term assets.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 22.7 points, from 125.1% to 102.4%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 3.7x to 1.5x.
🟡Profit is decliningFinancial
Net profit is down 37% 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 125.1% to 102.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 764% 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 12.2% to 4.4%. 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.
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 33% a year✓ 43.6% CAGR
Latest reported year was -48.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 100%✓ 102.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 4.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 6.4x✗ 55.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

2 / 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

3 good · 2 neutral · 6 weak

Market Cap

₹41 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

55.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.75

Profitable

Profitable on a per-share basis

ROE

4.4%

Weak

Weak capital efficiency

ROCE

22.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.10x

High

High leverage

Revenue Growth (YoY)

-48.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-83.8%

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

-₹22 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

43.1%

Good

Healthy core-business profitability

Net Margin

2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.06

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

43.0 / 44.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8 Cr	₹5 Cr	₹20 Cr	₹24 Cr	+43.6%
EBITDA	₹10 Cr	₹23 Cr	₹44 Cr	₹25 Cr	+34.4%
EBITDA Margin	125.1%	437.4%	219.5%	102.4%	—
PAT (Net Profit)	₹7 Cr	₹10 Cr	₹26 Cr	₹4 Cr	-14.3%
EPS	₹6.64	₹10.05	₹25.88	₹4.19	-14.2%
ROE	12.2%	15.6%	28.7%	4.4%	—
ROCE	17.9%	31.5%	43.9%	22.6%	—
Total Debt	₹156 Cr	₹156 Cr	₹171 Cr	₹197 Cr	+7.9%
Free Cash Flow	-₹2 Cr	₹1 Cr	-₹4 Cr	-₹22 Cr	—

🟢 Revenue has grown at 43.6% a year over 3 years.

🟢 EBITDA has grown at 34.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 125.1% to 102.4% over 3 years (-22.7 pts).

🔴 PAT (Net Profit) has shrunk at 14.3% a year over 3 years.

🔴 EPS has shrunk at 14.2% a year over 3 years.

🔴 ROE has fallen from 12.2% to 4.4% over 3 years (-7.8 pts).

🟢 ROCE has risen from 17.9% to 22.6% over 3 years (+4.6 pts).

🔴 Total Debt has grown at 7.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹312 Cr

Total Liabilities

₹218 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹22 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

83.5%

Corporate Actions

Ex-Dividend Date

22 Dec 2005

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

Nykaa stock gains 6% post Q2 update; Morgan Stanley shares target price

Business Today, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Alpha Wave Ventures offloads Rs 550-crore worth Pine Labs shares; ICICI Pru Life, Morgan Stanley among...

Moneycontrol.com, 02 Sept

Narayan Murthy's family, Morgan Stanley, LIC buys stake in this chemical stock | Do you own?

Livemint, 30 Aug

Morgan Stanley selects 24 startups for 2026 sustainable ventures cohort

scanx.trade, 14 Sept

Delhivery block deals worth Rs 186 crore see Goldman Sachs, Morgan Stanley, MFs step in; Nexus sells stake

The Economic Times, 15 Apr

RACL Geartech consolidated net profit rises 7.75% in the June 2026 quarter

Business Standard, 08 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Revenue growth is negative (-48.3%) on the latest reported period — check if this is one-off or a trend.
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

StrongBusiness Quality · Financial Health

WeakGrowth · Profitability · Valuation · 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. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x; Valuation vs its own median of 6.4x · see Key things to watch ↑