Nalin Lease Finance Limited

Financial Services — Credit Services · BSE

₹39.94+₹0.59 (+1.50%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, 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, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Nalin Lease Finance Limited, a non-banking financing company, provides fund based services in India. It offers financial services, which include gold loans, vehicle loans, business loans, lease financing, and hire purchase.

IndustryCredit Services

SectorFinancial Services

Employees16

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹46 reaches shareholders as profit, with ₹71 left at the operating level before interest, tax and depreciation. Each of its 16 employees supports ₹43.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin70.5%

Net margin46.1%

Revenue / employee₹43.1 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.

ROCE12.0%

ROE8.3%

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 +23% while net margin moved -14% 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+23%

Margin effect-14%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 7.2% — barely ahead of inflation
✗ Profit CAGR of only 2.0%
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

70/ 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

7.8x

3Y Median

9.1x

40 monthly readings · mean 9.3x · range 6.8x–15.2x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 14% below its 3y median of 9.1x. 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 54% below the peer median of 17.0x.

vs. its own history

Fair

9.1x median over 40 months · -14%

vs. sector peers

Cheap

17.0x median of 4 peers · -54%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.8x

P/B

0.69x

EV/EBITDA

7.5x

PEG

3.82

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 72.9% to 70.5% over 3 years.
Return on capital is falling
ROCE has declined from 14.4% to 12.0% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 2.3 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 54% 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 72.9% to 70.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 7.2% 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.
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 69%✓ 70.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✓ 8.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 5% a year✓ 7.2% CAGR
Latest reported year was 17.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Valuation vs its own median of 9.1x✓ 7.8x 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

6 good · 4 neutral · 1 weak

Market Cap

₹26 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.8x

Cheap

Cheap against the generic band

P/B Ratio

0.69x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.13

Profitable

Profitable on a per-share basis

ROE

8.3%

Moderate

Moderate capital efficiency

ROCE

12.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

17.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

20.6%

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

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹39.94

Operating Margin

75.4%

Good

Healthy core-business profitability

Net Margin

44.5%

Good

Strong bottom-line conversion

Current Ratio

3.62

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

26%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

38.5 / 38.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

55.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6 Cr	₹6 Cr	₹6 Cr	₹7 Cr	+7.2%
EBITDA	₹4 Cr	₹3 Cr	₹5 Cr	₹5 Cr	+6.1%
EBITDA Margin	72.9%	53.8%	74.5%	70.5%	—
PAT (Net Profit)	₹3 Cr	₹4 Cr	₹4 Cr	₹3 Cr	+2.0%
EPS	₹4.56	₹5.87	₹5.37	₹4.85	+2.1%
ROE	10.8%	12.2%	10.1%	8.3%	—
ROCE	14.4%	11.2%	13.1%	12.0%	—
Total Debt	₹2 Cr	₹4 Cr	₹2 Cr	₹10 Cr	+88.9%
Free Cash Flow	₹3 Cr	₹1 Cr	-₹3 Cr	-₹12 Cr	—

🟢 Revenue has grown at 7.2% a year over 3 years.

🟢 EBITDA has grown at 6.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 72.9% to 70.5% over 3 years (-2.3 pts).

🟢 PAT (Net Profit) has grown at 2.0% a year over 3 years.

🟢 EPS has grown at 2.1% a year over 3 years.

🔴 ROE has fallen from 10.8% to 8.3% over 3 years (-2.5 pts).

🔴 ROCE has fallen from 14.4% to 12.0% over 3 years (-2.4 pts).

🔴 Total Debt has grown at 88.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹3 Cr to -₹12 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹50 Cr

Total Liabilities

₹11 Cr

Total Debt

₹10 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹11 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.8%

Corporate Actions

Ex-Dividend Date

30 Aug 2021

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 positive3 mixed2 general

Nalin Lease Finance Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Compare NALIN LEASE with

Equitymaster, 24 Sept

Invigorated Business Consulting Ltd. (INVIGO) Share Price Surges 8.33% Today

Univest, 28 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

HAL board approves final dividend of ₹10 per share for FY26; check record date, share price details

Upstox, 29 JunCapital return

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

Q4 results 2026: BHEL to Paytm among companies to declare Q4 earnings next week; check full list here

Livemint, 03 MayResults

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

Tata Power shares drop 4% after Singapore court dismisses $490 million arbitration challenge against Kleros Capital

Upstox, 27 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

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

🟢Business QualityStrong15.9/20

🟢Financial HealthStrong17/20

🔴GrowthWeak7.3/20

🟡ProfitabilityModerate8.9/15

🟢ValuationAttractive11.8/15

🟡RiskModerate5.4/10

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

✓EBITDA margin holds above 69%70.5%
✓Return on equity stays above 8%8.3%
✓Revenue growth stays above 5% a year7.2% CAGR
✓Valuation vs its own median of 9.1x7.8x today