Nahar Capital and Financial Services Limited

Financial Services — Capital Markets · NSE

₹238.95+₹1.42 (+0.60%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by 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. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

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 Nahar Capital and Financial Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Nahar Capital and Financial Services Limited operates as a non-deposit-taking, non-banking financial company in India. It operates through two segments: Investment/Financial activities and Real Estate segment.

IndustryCapital Markets

SectorFinancial Services

Employees18

Annual revenue₹27 Cr

How does it make money?

Turns over ₹27 Cr a year. Of every ₹100 of sales, about ₹238 reaches shareholders as profit, with ₹306 left at the operating level before interest, tax and depreciation. Each of its 18 employees supports ₹1.47 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.47 Cr

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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +11% while net margin moved -47% 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+11%

Margin effect-47%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.4% — barely ahead of inflation
✗ Profit has declined at 16.0% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

88/ 100

Cheap

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

3.4x

3Y Median

8.4x

40 monthly readings · mean 17.3x · range 4.3x–50.9x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 60% below its 3y median of 8.4x. 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 94% below the peer median of 58.4x.

vs. its own history

Cheap

8.4x median over 40 months · -60%

vs. sector peers

Cheap

58.4x median of 3 peers · -94%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.0x

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

Return on equity is falling
ROE has dropped from 7.0% to 3.9% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 87.4 points, from 393.5% to 306.1%.
🟡Profit is decliningFinancial
Net profit is down 41% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 60% 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 94% 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?

Margins are being competed away
EBITDA margin has fallen from 393.5% to 306.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 3.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 7.0% to 3.9%. 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

1EBITDA margin holds above 304%✓ 306.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 3.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 4% a year✗ 3.4% CAGR
Latest reported year was 24.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Valuation vs its own median of 8.4x✓ 3.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹400 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.4x

Cheap

Cheap against the generic band

P/B Ratio

0.25x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹71.11

Profitable

Profitable on a per-share basis

ROE

3.9%

Weak

Weak capital efficiency

ROCE

4.5%

Weak

Low return on total capital employed

Debt/Equity

0.60x

Moderate

Moderate leverage

Revenue Growth (YoY)

24.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

487.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.63%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

80.1%

Good

Healthy core-business profitability

Net Margin

226.5%

Good

Strong bottom-line conversion

Current Ratio

21.07

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

240.7 / 251.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹24 Cr	₹22 Cr	₹25 Cr	₹27 Cr	+3.4%
EBITDA	₹94 Cr	₹16 Cr	₹60 Cr	₹81 Cr	-4.9%
EBITDA Margin	393.5%	72.2%	242.2%	306.1%	—
PAT (Net Profit)	₹107 Cr	₹12 Cr	₹50 Cr	₹63 Cr	-16.0%
EPS	₹63.73	₹7.03	₹29.75	₹37.71	-16.0%
ROE	7.0%	0.8%	3.2%	3.9%	—
ROCE	6.1%	1.0%	3.4%	4.5%	—
Total Debt	—	₹4 Cr	₹5 Cr	₹10 Cr	—
Free Cash Flow	-₹23 Cr	-₹20 Cr	-₹10 Cr	₹2 Cr	—

🟢 Revenue has grown at 3.4% a year over 3 years.

🔴 EBITDA has shrunk at 4.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 393.5% to 306.1% over 3 years (-87.4 pts).

🔴 PAT (Net Profit) has shrunk at 16.0% a year over 3 years.

🔴 EPS has shrunk at 16.0% a year over 3 years.

🔴 ROE has fallen from 7.0% to 3.9% over 3 years (-3.1 pts).

🔴 ROCE has fallen from 6.1% to 4.5% over 3 years (-1.6 pts).

🟢 Free Cash Flow has turned positive, from -₹23 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,782 Cr

Total Liabilities

₹174 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹11 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.4%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

04 Sept 2026

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

1 positive1 mixed4 general

Is Nahar Capital and Financial Services the Best Stock in Its Sector? A Look at the Numbers

Univest, 01 Oct

Nahar Spinning Mills Limited (NAHARSPING.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 09 Oct

Nahar Capital NSE:NAHARCAP Trading Window Closure Q2 FY27

Kalkine India, 28 SeptResults

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

Nahar Capital And Financial Services Ltd. Upper Circuit: Price and Key Data

Univest, 23 Sept

Nahar Capital shareholders approve ₹1.50 dividend, re-appoint Dinesh Oswal as MD

scanx.trade, 25 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Stocks to Watch Today: Gland Pharma, Rail Vikas Nigam, Cipla, Avalon Tech, Ramco Systems, ESDS Software,...

Moneycontrol.com, 04 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

StrongBusiness Quality · Financial Health · Valuation

MiddlingProfitability

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 4 tripwires tripped — Return on equity stays above 8%; Revenue growth stays above 4% a year · see Key things to watch ↑