PMC Fincorp Limited

Financial Services — Credit Services · BSE

₹1.75−₹0.01 (−0.57%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:26 pm

Understanding the Business

Company site ↗

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

What does this company do?

PMC Fincorp Limited operates as a non-banking financial company in India. The company offers working capital solutions; and business loans and loans against securities. It engages in financing and investment related activities.

IndustryCredit Services

SectorFinancial Services

Employees9

Annual revenue₹14 Cr

How does it make money?

Turns over ₹14 Cr a year. Of every ₹100 of sales, about ₹44 reaches shareholders as profit, with ₹66 left at the operating level before interest, tax and depreciation. Each of its 9 employees supports ₹1.57 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.57 Cr

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.

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%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.60 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

73/ 100

Good

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

Valuation

42/ 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.

Historical Valuation

Current P/E

21.9x

2Y Median

12.3x

28 monthly readings · mean 14.4x · range 8.4x–26.1x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 78% above its 2y median of 12.3x. 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 29% above the peer median of 17.0x.

vs. its own history

Expensive

12.3x median over 28 months · +78%

vs. sector peers

Expensive

17.0x median of 4 peers · +29%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from -6.2% to 3.3%.
Return on capital is rising
ROCE has improved from -4.8% to 4.9%.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 311.1 points, from 377.2% to 66.1%.

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 377.2% to 66.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 78% 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 64%✓ 66.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 3.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 12.3x✗ 21.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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 · 5 neutral · 4 weak

Market Cap

₹125 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.9x

Fair

Fairly valued against the generic band

P/B Ratio

0.38x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.08

Profitable

Profitable on a per-share basis

ROE

3.3%

Weak

Weak capital efficiency

ROCE

4.9%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

8.2%

Modest

Modest growth

Profit Growth (YoY)

-16.7%

Falling

Profits are shrinking

Dividend Yield

0.57%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

91.4%

Good

Healthy core-business profitability

Net Margin

40.9%

Good

Strong bottom-line conversion

Current Ratio

31.36

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.60

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1.8 / 1.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	-₹1 Cr	₹16 Cr	₹21 Cr	₹14 Cr	—
EBITDA	-₹4 Cr	₹13 Cr	₹19 Cr	₹9 Cr	—
EBITDA Margin	377.2%	81.5%	87.3%	66.1%	—
PAT (Net Profit)	-₹6 Cr	₹11 Cr	₹14 Cr	₹6 Cr	—
EPS	₹-0.11	₹0.19	₹0.2	₹0.08	—
ROE	-6.2%	9.9%	8.5%	3.3%	—
ROCE	-4.8%	9.6%	10.9%	4.9%	—
Total Debt	₹15 Cr	₹19 Cr	₹46 Cr	—	—
Free Cash Flow	-₹4 Cr	₹10 Cr	-₹28 Cr	-₹7 Cr	—

🟢 Revenue has turned positive, from -₹1 Cr to ₹14 Cr.

🟢 EBITDA has turned positive, from -₹4 Cr to ₹9 Cr.

🔴 EBITDA Margin has fallen from 377.2% to 66.1% over 3 years (-311.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹6 Cr to ₹6 Cr.

🟢 EPS has turned positive, from ₹-0.11 to ₹0.08.

🟢 ROE has risen from -6.2% to 3.3% over 3 years (+9.5 pts).

🟢 ROCE has risen from -4.8% to 4.9% over 3 years (+9.8 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹190 Cr

Total Liabilities

₹4 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹7 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

30.8%

Corporate Actions

Dividend Rate

₹0.01

Ex-Dividend Date

29 Aug 2025

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

2 mixed4 general

PMC Fincorp Q1 FY27 Results: Revenue Rs 6 Cr, PAT Rs 4 Cr Exceptional Margins

Univest, 17 AugResults

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

PMC Fincorp AGM: Modi reappointment, new auditor on agenda

scanx.trade, 24 Sept

Compare with Priti Mercantile

Equitymaster, 08 Oct

PMC Fincorp - 12 penny stocks surge up to 110% in a month, 2 turn multibaggers

The Economic Times, 04 Jan

PMC Fincorp Ltd

Equitypandit, 31 Aug

PMC Fincorp closes trading window from July 01 for Q1FY27 results

scanx.trade, 19 JunResults

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

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Valuation

WeakRisk

Points for each in the Score ↑

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.

2 of 3 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 12.3x · see Key things to watch ↑