Marg Techno-Projects Limited

Financial Services — Credit Services · BSE

₹7.13+₹0.04 (+0.56%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by 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, 6:05 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Marg Techno-Projects Limited, a non-banking financial company, provides financial services in India. It offers unsecured personal loans, unsecured business loans, and secured loans against gold jewellery.

IndustryCredit Services

SectorFinancial Services

Employees12

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹30 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹56.9 lakh of revenue a year, the signature of a people-led business.

EBITDA margin30.4%

Net margin14.5%

Revenue / employee₹56.9 lakh

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.

ROCE2.6%

ROE2.9%

Peer median ROE16.5%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +34% while net margin moved +50% 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+34%

Margin effect+50%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.58 — 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

75/ 100

Good

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

Valuation

77/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

6.2x

3Y Median

116.9x

40 monthly readings · mean 170.3x · range 18.6x–373.2x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 95% below its 3y median of 116.9x. 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 64% below the peer median of 17.0x.

vs. its own history

Cheap

116.9x median over 40 months · -95%

vs. sector peers

Cheap

17.0x median of 4 peers · -64%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

6.2x

P/B

0.23x

EV/EBITDA

39.2x

PEG

0.24

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 16.3% to 30.4% over 3 years.
Valuation below its historical average
At 6.2x the stock trades 95% below its own median of 116.9x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 7.5% to 2.9% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 137% 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 16.3% to 30.4%. 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 95% 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 64% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Returns on shareholder capital are falling
ROE has dropped from 7.5% to 2.9%. 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 8% a year✓ 10.4% CAGR
Latest reported year was 190.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 28%✓ 30.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 2.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 116.9x✓ 6.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹56 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.2x

Cheap

Cheap against the generic band

P/B Ratio

0.23x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.15

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

2.6%

Weak

Low return on total capital employed

Debt/Equity

0.78x

Moderate

Moderate leverage

Revenue Growth (YoY)

190.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

800.0%

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

-₹23 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹7.13

Operating Margin

74.5%

Good

Healthy core-business profitability

Net Margin

35.5%

Good

Strong bottom-line conversion

Current Ratio

99.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.58

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

7.9 / 10.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

38.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5 Cr	₹5 Cr	₹5 Cr	₹7 Cr	+10.4%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹2 Cr	+35.8%
EBITDA Margin	16.3%	14.2%	15.0%	30.4%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+26.3%
EPS	₹0.35	₹0.1	₹0.25	₹0.37	+2.4%
ROE	7.5%	1.1%	3.3%	2.9%	—
ROCE	3.0%	1.4%	1.4%	2.6%	—
Total Debt	₹18 Cr	₹17 Cr	₹22 Cr	₹27 Cr	+15.1%
Free Cash Flow	₹6 Cr	-₹1 Cr	-₹4 Cr	-₹23 Cr	—

🟢 Revenue has grown at 10.4% a year over 3 years.

🟢 EBITDA has grown at 35.8% a year over 3 years.

🟢 EBITDA Margin has risen from 16.3% to 30.4% over 3 years (+14.0 pts).

🟢 PAT (Net Profit) has grown at 26.3% a year over 3 years.

🟢 EPS has grown at 2.4% a year over 3 years.

🔴 ROE has fallen from 7.5% to 2.9% over 3 years (-4.6 pts).

🟡 ROCE has held roughly flat at 2.6% over 3 years.

🔴 Total Debt has grown at 15.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹6 Cr to -₹23 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹62 Cr

Total Liabilities

₹28 Cr

Total Debt

₹27 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹23 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.6%

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

6 general

Compare BOM.OXYGEN with

Equitymaster, 13 Oct

Marg Techno Projects Share Price in Focus as Rights Issue Closing Date Extended to July 28

Univest, 01 Jul

Marg Techno-Projects extends rights issue closing date to July 28, 2026

scanx.trade, 25 Jun

Marg Techno Projects Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 02 Sept

Marg Techno Projects Rights Issue 2026 Date, Price, Allotment, Ratio

IPO Watch, 02 Jul

Marg Techno-Projects promoters diluted to 29.28% post rights issue

scanx.trade, 05 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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

🟢Business QualityStrong15.9/20

🟢Financial HealthStrong17/20

🟢GrowthStrong16.1/20

🟡ProfitabilityModerate7.5/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

This thesis breaks if

✓Revenue growth stays above 8% a year10.4% CAGR
✓EBITDA margin holds above 28%30.4%
✗Return on equity stays above 8%2.9%
✓Valuation vs its own median of 116.9x6.2x today