NPR Finance Limited

Financial Services — Credit Services · BSE

₹23.29+₹0.54 (+2.37%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:06 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 NPR Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

NPR Finance Limited engages in non-banking financing activities in India. It operates through two segments: Financial and Real Estate segments.

IndustryCredit Services

SectorFinancial Services

Employees37

Annual revenue₹5 Cr

How does it make money?

Turns over ₹5 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹0 left at the operating level before interest, tax and depreciation. Each of its 37 employees supports ₹12.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin0.2%

Net margin4.4%

Revenue / employee₹12.8 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.

ROCE0.1%

ROE0.4%

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 -61% while net margin moved -122% 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-61%

Margin effect-122%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 27.2% a year

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

35/ 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.

Historical Valuation

Current P/E

51.8x

2Y Median

21.7x

28 monthly readings · mean 26.8x · range 11.8x–68.6x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 138% above its 2y median of 21.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 205% above the peer median of 17.0x.

vs. its own history

Expensive

21.7x median over 28 months · +138%

vs. sector peers

Expensive

17.0x median of 4 peers · +205%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

51.8x

P/B

0.28x

EV/EBITDA

1867.3x

PEG

1.24

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Return on equity is rising
ROE has improved from -4.9% to 0.4%.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 27.8% to 0.2% over 3 years.
Inventory building faster than sales
Inventory is up 21% against revenue growth of -61% — stock may not be moving.
Valuation above its historical average
At 51.8x the stock trades 138% above its own median of 21.7x.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 27.6 points, from 27.8% to 0.2%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 27.8% to 0.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 138% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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 -2%✓ 0.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 0.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 21.7x✗ 51.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹14 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

51.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.28x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.45

Profitable

Profitable on a per-share basis

ROE

0.4%

Weak

Weak capital efficiency

ROCE

0.1%

Weak

Low return on total capital employed

Debt/Equity

0.71x

Moderate

Moderate leverage

Revenue Growth (YoY)

-4.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

41.7%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹23.29

Operating Margin

18.7%

Good

Healthy core-business profitability

Net Margin

5.4%

Average

Average bottom-line conversion

Current Ratio

80.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.22

Defensive

Steadier than the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

23.8 / 22.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12 Cr	₹9 Cr	₹7 Cr	₹5 Cr	-27.2%
EBITDA	₹3 Cr	-₹1 Cr	₹0 Cr	₹0 Cr	-86.9%
EBITDA Margin	27.8%	-15.9%	3.4%	0.2%	—
PAT (Net Profit)	-₹2 Cr	₹1 Cr	₹1 Cr	₹0 Cr	—
EPS	₹-4.03	₹1.81	₹0.99	₹0.35	—
ROE	-4.9%	2.3%	1.2%	0.4%	—
ROCE	-0.4%	0.4%	0.3%	0.1%	—
Total Debt	₹3 Cr	₹4 Cr	₹0 Cr	₹0 Cr	-50.2%
Free Cash Flow	-₹4 Cr	-₹4 Cr	₹3 Cr	₹0 Cr	—

🔴 Revenue has shrunk at 27.2% a year over 3 years.

🔴 EBITDA has shrunk at 86.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 27.8% to 0.2% over 3 years (-27.6 pts).

🟢 PAT (Net Profit) has turned positive, from -₹2 Cr to ₹0 Cr.

🟢 EPS has turned positive, from ₹-4.03 to ₹0.35.

🟢 ROE has risen from -4.9% to 0.4% over 3 years (+5.3 pts).

🟡 ROCE has held roughly flat at 0.1% over 3 years.

🟢 Total Debt has shrunk at 50.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹4 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹51 Cr

Total Liabilities

₹1 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.1%

Corporate Actions

Ex-Dividend Date

10 Sept 2007

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

NPR Finance Ltd. Stock News

Value Research, 01 Sept

Compare NPR FINANCE with

Equitymaster, 11 Oct

NPR Finance passes all resolutions at 37th AGM with high majority

scanx.trade, 24 Sept

Worried about a shaky stock market? This is what financial advisers suggest you do

NPR, 23 Mar

Outcome of board meeting of Shalimar Paints

Business Standard, 13 Aug

रिलायन्स फाइनान्सको चौथो त्रैमासिक अपरिष्कृत वित्तीय विवरण

NEPSE Trading, 14 Aug

Watch Items

Revenue growth is negative (-4.0%) 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.

DalalBaazaar Thesis

🔴Business QualityWeak8.5/20

🟢Financial HealthStrong17/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate8.3/15

🔴ValuationDemanding6.2/15

🔴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

✓EBITDA margin holds above -2%0.2%
✗Return on equity stays above 8%0.4%
✗Valuation vs its own median of 21.7x51.8x today