Ontic Finserve Limited

Financial Services — Capital Markets · BSE

₹1.13−₹0.05 (−4.24%)

DalalBaazaar Score

61 / 100

🟢 Good

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 Ontic Finserve Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ontic Finserve Limited offers financial advisory services in India. It focuses on financial planning through mutual funds. The company was formerly known as Maral Finance Limited. Ontic Finserve Limited was incorporated in 1995 and is based in Ahmedabad, India.

IndustryCapital Markets

SectorFinancial Services

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹50 reaches shareholders as profit, with ₹86 left at the operating level before interest, tax and depreciation.

EBITDA margin86.2%

Net margin49.5%

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.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

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.

ROCE22.2%

ROE14.4%

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 +116% while net margin moved +458% 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+116%

Margin effect+458%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

39/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

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

2.70x

EV/EBITDA

10.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 1.0% to 14.4%.
Return on capital is rising
ROCE has improved from 7.6% to 22.2%.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 124.5% to 86.2% over 3 years.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 38.2 points, from 124.5% to 86.2%.

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 124.5% to 86.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 22% a year✓ 29.3% CAGR
Latest reported year was -96.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 84%✓ 86.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 12%✓ 14.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.

Investment Checklist

5 / 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

2 good · 4 neutral · 5 weak

Market Cap

₹10 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

2.70x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-0.29

Loss-making

Negative earnings per share — the business is losing money

ROE

14.4%

Moderate

Moderate capital efficiency

ROCE

22.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

9.28x

High

High leverage

Revenue Growth (YoY)

-96.1%

Shrinking

Sales are contracting

Profit Growth (YoY)

-58.8%

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

₹1.13

Operating Margin

-13243.8%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.15

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

1.17

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1.3 / 1.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

12.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	—	₹2 Cr	₹1 Cr	+29.3%
EBITDA	₹1 Cr	-₹3 Cr	₹2 Cr	₹1 Cr	+14.4%
EBITDA Margin	124.5%	—	90.0%	86.2%	—
PAT (Net Profit)	₹0 Cr	-₹3 Cr	₹1 Cr	₹1 Cr	+129.4%
EPS	₹0.05	₹-0.31	₹0.15	₹0.06	+6.3%
ROE	1.0%	-152.6%	42.2%	14.4%	—
ROCE	7.6%	-152.5%	58.1%	22.2%	—
Total Debt	—	—	₹0 Cr	₹0 Cr	—
Free Cash Flow	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+181.3%

🟢 Revenue has grown at 29.3% a year over 3 years.

🟢 EBITDA has grown at 14.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 124.5% to 86.2% over 3 years (-38.2 pts).

🟢 PAT (Net Profit) has grown at 129.4% a year over 3 years.

🟢 EPS has grown at 6.3% a year over 3 years.

🟢 ROE has risen from 1.0% to 14.4% over 3 years (+13.4 pts).

🟢 ROCE has risen from 7.6% to 22.2% over 3 years (+14.6 pts).

🟢 Free Cash Flow has grown at 181.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4 Cr

Total Liabilities

₹1 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

20.9%

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

2 negative4 general

Ontic Finserve - These 9 penny stocks rallied up to 360% in 6 months; 4 turned multibaggers

The Economic Times, 19 Jul

Ontic Finserve AGM approves FY26 accounts and share consolidation

scanx.trade, 30 Sept

Ontic Finserve profit falls 59% in FY26; board approves capital reduction

scanx.trade, 01 SeptResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Ontic Finserve Ltd

Equitypandit, 10 Mar

Bharat Coking Coal standalone net profit declines 58.98% in the March 2026 quarter

Business Standard, 23 AprResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Ontic Finserve appoints PCS Jitendra Parmar as secretarial auditor for FY26

scanx.trade, 31 Aug

Watch Items

Revenue growth is negative (-96.1%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate12.2/20

🟢Financial HealthStrong17/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate8.5/15

🔴ValuationDemanding5.1/15

🔴RiskHigh3.6/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 22% a year29.3% CAGR
✓EBITDA margin holds above 84%86.2%
✓Return on equity stays above 12%14.4%