NCL Research & Financial Services Limited

Financial Services — Credit Services · BSE

₹0.70+₹0.02 (+2.94%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 NCL Research & 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?

NCL Research & Financial Services Limited, a non-banking financial company, engages in finance and investment activities in India. The company invests and trades in shares and securities in equity and FNO segments. It also provides secured and unsecured loans.

IndustryCredit Services

SectorFinancial Services

Employees8

Annual revenue₹6 Cr

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹-45 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation. Each of its 8 employees supports ₹73.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin27.9%

Net margin-44.5%

Revenue / employee₹73.0 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.

ROCE-0.6%

ROE-2.4%

Peer median ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +49% while net margin moved -390% 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+49%

Margin effect-390%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

30/ 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

P/E (Trailing)

Not meaningful

P/B

0.71x

EV/EBITDA

67.2x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 21.8% to 27.9% over 3 years.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 1 high · 1 watch

🔴The company is lossmakingFinancial
Net profit of -₹3 Cr in the latest reported year.
🟡Low reported insider holdingOwnership
Reported insider holding is 2.4%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 21.8% to 27.9%. 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.

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

1Revenue growth stays above 11% a year✓ 14.3% CAGR
Latest reported year was -14.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 26%✓ 27.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ -2.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.

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

2 good · 3 neutral · 6 weak

Market Cap

₹110 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

0.71x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.03

Loss-making

Negative earnings per share — the business is losing money

ROE

-2.4%

Weak

Weak capital efficiency

ROCE

-0.6%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-14.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-50.0%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹0.7

Operating Margin

66.9%

Good

Healthy core-business profitability

Net Margin

-54.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

884.85

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

65%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

0.7 / 0.7

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹11 Cr	₹5 Cr	₹6 Cr	+14.3%
EBITDA	₹1 Cr	₹3 Cr	-₹1 Cr	₹2 Cr	+24.1%
EBITDA Margin	21.8%	28.5%	-15.3%	27.9%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	-₹1 Cr	-₹3 Cr	—
EPS	₹0.01	₹0.02	₹-0.01	₹-0.02	—
ROE	0.5%	1.5%	-1.2%	-2.4%	—
ROCE	0.6%	1.8%	-0.7%	-0.6%	—
Free Cash Flow	-₹24 Cr	-₹20 Cr	-₹17 Cr	₹1 Cr	—

🟢 Revenue has grown at 14.3% a year over 3 years.

🟢 EBITDA has grown at 24.1% a year over 3 years.

🟢 EBITDA Margin has risen from 21.8% to 27.9% over 3 years (+6.1 pts).

🔴 PAT (Net Profit) has turned negative, from ₹1 Cr to -₹3 Cr.

🔴 EPS has turned negative, from ₹0.01 to ₹-0.02.

🔴 ROE has fallen from 0.5% to -2.4% over 3 years (-2.9 pts).

🔴 ROCE has fallen from 0.6% to -0.6% over 3 years (-1.3 pts).

🟢 Free Cash Flow has turned positive, from -₹24 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹122 Cr

Total Liabilities

₹12 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

2.4%

Corporate Actions

Ex-Dividend Date

04 Sept 2014

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

1 mixed5 general

NCL Research & Financial Services Lower Circuit Streak: Day 2

Univest, 08 Oct

NCL Research fixes Aug 27 record date for ₹499.5 crore rights issue

scanx.trade, 17 Aug

NCL Research & Financial Services Rights Issue 2026 Date, Price, Allotment, Ratio

IPO Watch, 27 Aug

Penny Stock Under Re 1: THIS NBFC Stock Hits Upper Circuit On Q1 Update | Do You Own?

Goodreturns, 15 OctResults

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

NCL Research & Financial Services Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

NCL Research and Financial Services Ltd. - RE Share Price Live Today

CNBC TV18, 15 Sept

Watch Items

Revenue growth is negative (-14.4%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

🟡Business QualityAdequate10.5/20

🟢Financial HealthStrong17/20

🟡GrowthModest10.6/20

🔴ProfitabilityWeak1.3/15

🟡ValuationFair7.1/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓Revenue growth stays above 11% a year14.3% CAGR
✓EBITDA margin holds above 26%27.9%
✗Return on equity stays above 8%-2.4%