Nalwa Sons Investments Limited

Financial Services — Asset Management · NSE

₹5,330.00+₹187.50 (+3.65%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

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, 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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Nalwa Sons Investments Limited, a non-banking financial company, engages in the investment and financing business in India. The company operates through the Investment & Finance; and Trading of Goods segments.

IndustryAsset Management

SectorFinancial Services

Employees4

Annual revenue₹96 Cr

How does it make money?

Turns over ₹96 Cr a year. Of every ₹100 of sales, about ₹57 reaches shareholders as profit, with ₹80 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹23.96 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹23.96 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. 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 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 -27% while net margin moved -17% 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-27%

Margin effect-17%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 10.1% a year
✗ Profit has declined at 15.7% a year

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

36/ 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

47.8x

3Y Median

55.3x

40 monthly readings · mean 48.3x · range 13.6x–84.9x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 14% below its 3y median of 55.3x. 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 181% above the peer median of 17.0x.

vs. its own history

Fair

55.3x median over 40 months · -14%

vs. sector peers

Expensive

17.0x median of 4 peers · +181%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

35.7x

PEG

13.67

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

Receivables growing faster than sales
Receivables are up 4280800% against revenue growth of -27% — customers are taking longer to pay.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 15.1 points, from 95.0% to 79.9%.
🟡Profit is decliningFinancial
Net profit is down 40% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 95.0% to 79.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 181% above the peer median. That premium needs a reason that persists, or it closes.
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 78%✓ 79.9%
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 55.3x✓ 47.8x 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

₹2,738 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

47.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.18x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹111.43

Profitable

Profitable on a per-share basis

ROE

0.4%

Weak

Weak capital efficiency

ROCE

0.4%

Weak

Low return on total capital employed

Debt/Equity

0.02x

Low

Conservative leverage

Revenue Growth (YoY)

-7.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

3.5%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹49 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

98.3%

Good

Healthy core-business profitability

Net Margin

56.3%

Good

Strong bottom-line conversion

Current Ratio

68.87

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.22

Defensive

Steadier than the market

52W Range Position

17%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

5304.1 / 5491.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹132 Cr	₹82 Cr	₹109 Cr	₹96 Cr	-10.1%
EBITDA	₹125 Cr	₹76 Cr	₹65 Cr	₹77 Cr	-15.1%
EBITDA Margin	95.0%	92.6%	59.8%	79.9%	—
PAT (Net Profit)	₹91 Cr	₹56 Cr	₹47 Cr	₹55 Cr	-15.7%
EPS	₹180.26	₹109.59	₹89.54	₹110.37	-15.1%
ROE	1.1%	0.4%	0.3%	0.4%	—
ROCE	1.3%	0.5%	0.3%	0.4%	—
Free Cash Flow	₹72 Cr	₹41 Cr	₹62 Cr	₹49 Cr	-12.1%

🔴 Revenue has shrunk at 10.1% a year over 3 years.

🔴 EBITDA has shrunk at 15.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 95.0% to 79.9% over 3 years (-15.1 pts).

🔴 PAT (Net Profit) has shrunk at 15.7% a year over 3 years.

🔴 EPS has shrunk at 15.1% a year over 3 years.

🟡 ROE has held roughly flat at 0.4% over 3 years.

🟡 ROCE has held roughly flat at 0.4% over 3 years.

🔴 Free Cash Flow has shrunk at 12.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17,184 Cr

Total Liabilities

₹1,965 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹49 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

4.5%

Insider Holding

70.4%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 positive5 general

Arihant Capital vs Nalwa Sons vs Mufin Green: Which Stock Should You Track

Univest, 13 Oct

Nalwa Sons Investments Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 03 Sept

Nalwa Sons Investments passes all AGM resolutions for FY26

scanx.trade, 01 Oct

Nalwa Sons Investments Ltd. Peer Comparison – Compare with Others

Value Research, 27 Aug

Nalwa Sons Investments Share: Bull Case vs Bear Case for 2026

Univest, 16 Sept

Nalwa Sons Investments posts 3.7% profit rise in Q1FY27

scanx.trade, 07 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Revenue growth is negative (-7.3%) 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

StrongBusiness Quality · Financial Health

MiddlingProfitability · Valuation · Risk

WeakGrowth

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.

1 of 3 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑