PNB Gilts Ltd.

Financial Services — Capital Markets · NSE

₹73.80+₹1.03 (+1.42%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of PNB Gilts Ltd. — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

PNB Gilts Ltd. operates as a government securities dealer in India.

IndustryCapital Markets

SectorFinancial Services

Employees51

Annual revenue₹1,662 Cr

How does it make money?

Turns over ₹1,662 Cr a year. Each of its 51 employees supports ₹32.59 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹32.59 Cr

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.

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 ROE13.7%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.52 — 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

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

79/ 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

6.9x

4Y Median

7.1x

52 monthly readings · mean 12.3x · range 4.6x–33.5x

Sector Median

58.4x

median of 3 sector peers

🟡Currently trading close to its 4y median of 7.1x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 88% below the peer median of 58.4x.

vs. its own history

Fair

7.1x median over 52 months · -3%

vs. sector peers

Cheap

58.4x median of 3 peers · -88%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

-14.3x

PEG

—

What's Good / What's Bad

🟢 What's Going Well0

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

🔴 What Needs Attention1

Short-term liquidity is tight
Current ratio of 0.14 — near-term obligations exceed near-term assets.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 88% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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 15% a year✓ 20.5% CAGR
Latest reported year was -4.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 92%✓ 93.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 9%✓ 11.2%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 7.1x✓ 6.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 8 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue 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 · 5 neutral · 2 weak

Market Cap

₹1,328 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.9x

Cheap

Cheap against the generic band

P/B Ratio

0.74x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹10.69

Profitable

Profitable on a per-share basis

ROE

11.2%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

13.82x

High

High leverage

Revenue Growth (YoY)

-4.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

Not available

No data

Source didn't return this field

Dividend Yield

2.71%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

Not available

No data

Source didn't return this field

More Metrics

ROA

0.7%

Weak

Assets generate little profit

Operating Margin

82.4%

Good

Healthy core-business profitability

Net Margin

49.4%

Good

Strong bottom-line conversion

Current Ratio

0.14

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.52

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

73.4 / 77.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.0

Neutral momentum

Financial Trend (5-Year)

Metric	FY22	FY23	FY24	FY25	FY26	3Y CAGR	4Y CAGR
Revenue	—	₹950 Cr	₹1,383 Cr	₹1,556 Cr	₹1,662 Cr	+20.5%	+20.5%
EBITDA	₹722 Cr	₹881 Cr	₹1,522 Cr	₹1,625 Cr	₹1,555 Cr	+20.8%	+21.2%
EBITDA Margin	—	92.7%	110.0%	104.4%	93.6%	—	—
PAT (Net Profit)	₹166 Cr	-₹77 Cr	₹69 Cr	₹233 Cr	—	—	—
EPS	₹9.21	₹-4.29	₹3.86	₹12.95	—	—	—
ROE	—	-6.1%	5.2%	15.1%	—	—	—
ROCE	—	69.9%	112.9%	104.7%	—	—	—
Total Debt	₹14,533 Cr	₹19,243 Cr	₹22,403 Cr	₹22,384 Cr	—	—	—
Free Cash Flow	-₹4,564 Cr	-₹4,653 Cr	-₹2,876 Cr	-₹198 Cr	—	—	—

🟢 Revenue has grown at 20.5% a year over 3 years.

🟢 EBITDA has grown at 21.2% a year over 4 years.

🟡 EBITDA Margin has held roughly flat at 93.6% over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

—

Total Liabilities

₹25,351 Cr

Cash & Equivalents

₹23,539 Cr

Operating Cash Flow

—

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.9%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

21 Sept 2026

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

5 mixed1 general

PNB Gilts stock zooms 12%; pares gains post Q2 results

Business Standard, 13 OctResults

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

PNB Gilts Share Price Rises 8.86% to Rs 76.81

Univest, 13 OctPrice 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.

PNB Gilts Swings to Rs 44.84 Cr Profit in Q2

Equitypandit, 13 OctResults

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

PNB Gilts Q2 Results: Shares jump 12% as company swings to profit

CNBC TV18, 13 OctPrice 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.

PNB Gilts shares jump 12% as firm returns to black in Q2

Business Today, 13 OctPrice 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.

Why PNB Gilts Share Price is Rising

Equitymaster, 14 May

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

Points for each in the Score ↑

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.

All 4 tripwires holding · see Key things to watch ↑