Munoth Capital Market Limited

Financial Services — Capital Markets · BSE

₹104.00+₹4.50 (+4.52%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, 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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Munoth Capital Market Limited engages in the depository participation and share brokerage activities in India.

IndustryCapital Markets

SectorFinancial Services

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹-33 reaches shareholders as profit, with ₹-21 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 LIFE INS CO LTD, SBI LIFE INSURANCE CO 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 ROE13.7%

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 +380% while net margin moved -86% 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+380%

Margin effect-86%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

21/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from -197.0% to -21.3% over 3 years.
Return on capital is rising
ROCE has improved from -5.6% to -3.0%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -77.9x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 24.6x to -77.9x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -197.0% to -21.3%. 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?

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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 52% a year✓ 68.7% CAGR
Latest reported year was -13.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -23%✓ -21.3%
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✗ -77.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 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

0 good · 2 neutral · 9 weak

Market Cap

₹95 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

16.87x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-0.1

Loss-making

Negative earnings per share — the business is losing money

ROE

-3.1%

Weak

Weak capital efficiency

ROCE

-3.0%

Weak

Low return on total capital employed

Debt/Equity

1.54x

High

High leverage

Revenue Growth (YoY)

-13.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-196.0%

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

-82.1%

Weak

Thin margins leave little room for error

Net Margin

-12.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

8.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.93

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

95.9 / 97.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+68.7%
EBITDA	-₹0 Cr	-₹0 Cr	₹0 Cr	-₹0 Cr	—
EBITDA Margin	-197.0%	-23.9%	48.6%	-21.3%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹0 Cr	-₹0 Cr	—
EPS	₹-0.29	₹-0.24	₹0.2	₹-0.19	—
ROE	-5.6%	-3.8%	3.1%	-3.1%	—
ROCE	-5.6%	-3.7%	4.2%	-3.0%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-27.9%
Free Cash Flow	-₹0 Cr	-₹2 Cr	-₹0 Cr	-₹0 Cr	—

🟢 Revenue has grown at 68.7% a year over 3 years.

🟢 EBITDA Margin has risen from -197.0% to -21.3% over 3 years (+175.7 pts).

🟢 ROE has risen from -5.6% to -3.1% over 3 years (+2.5 pts).

🟢 ROCE has risen from -5.6% to -3.0% over 3 years (+2.6 pts).

🟢 Total Debt has shrunk at 27.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6 Cr

Total Liabilities

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.1%

Corporate Actions

Ex-Dividend Date

06 Sept 2012

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

3 mixed3 general

Munoth Capital Markets Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Munoth Capital Markets discloses AGM voting results, all resolutions pass

scanx.trade, 05 OctResults

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

IMEC Services reports standalone net loss of Rs 0.48 crore in the June 2026 quarter

Business Standard, 15 AugResults

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

Compare with MUNOTH INVESTMENTS

Equitymaster, 11 Oct

Munoth Capital Market Limited Schedules Board Meeting on May 29, 2026 to Review Audited Financial Results

scanx.trade, 29 MayResults

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

Compare MUNOTH INVESTMENTS with

Equitymaster, 10 Oct

Watch Items

Revenue growth is negative (-13.5%) 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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health · Growth

WeakBusiness Quality · 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.

2 of 4 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x · see Key things to watch ↑