QGO Finance Limited

Financial Services — Credit Services · BSE

₹41.90+₹2.85 (+7.30%)

DalalBaazaar Score

83 / 100

🟢 Strong

Verdict

ATTRACTIVE

Risk

Moderate

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

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

QGO Finance Limited, a non-banking financial company, provides financial services in India. The company offers project loans, loans against property, business loans, and co-operative housing society loans.

IndustryCredit Services

SectorFinancial Services

Employees13

Annual revenue₹18 Cr

How does it make money?

Turns over ₹18 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹86 left at the operating level before interest, tax and depreciation. Each of its 13 employees supports ₹1.40 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin85.6%

Net margin18.5%

Revenue / employee₹1.40 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.

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.

ROCE12.5%

ROE16.0%

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 +58% while net margin moved +22% 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+58%

Margin effect+22%

DalalBaazaar Score

83/ 100

Strong

Weighted across six categories. Every point is explained below.

✓ Beta of -0.40 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

88/ 100

Excellent

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

Valuation

84/ 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

8.1x

3Y Median

14.3x

40 monthly readings · mean 15.0x · range 8.1x–29.2x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 43% below its 3y median of 14.3x. 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 52% below the peer median of 17.0x.

vs. its own history

Cheap

14.3x median over 40 months · -43%

vs. sector peers

Cheap

17.0x median of 4 peers · -52%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

8.1x

P/B

1.37x

EV/EBITDA

8.2x

PEG

0.34

Dividend Yield

1.43%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 22.2% to 85.6% over 3 years.
Return on capital is rising
ROCE has improved from 2.9% to 12.5%.
Valuation below its historical average
At 8.1x the stock trades 43% below its own median of 14.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.4x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 22.2% to 85.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 43% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 52% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

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 12% a year✓ 16.3% CAGR
Latest reported year was 49.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 84%✓ 85.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 14%✓ 16.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.4x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 14.3x✓ 8.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹29 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.1x

Cheap

Cheap against the generic band

P/B Ratio

1.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.16

Profitable

Profitable on a per-share basis

ROE

16.0%

Strong

Strong capital efficiency

ROCE

12.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.90x

High

High leverage

Revenue Growth (YoY)

49.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

26.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.43%

Modest

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

Free Cash Flow

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹41.9

Operating Margin

58.0%

Good

Healthy core-business profitability

Net Margin

44.8%

Good

Strong bottom-line conversion

Current Ratio

31.48

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.40

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

39.7 / 40.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

61.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12 Cr	₹14 Cr	₹16 Cr	₹18 Cr	+16.3%
EBITDA	₹3 Cr	₹12 Cr	₹14 Cr	₹16 Cr	+82.4%
EBITDA Margin	22.2%	88.7%	87.3%	85.6%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹3 Cr	₹3 Cr	+24.2%
EPS	₹2.53	₹3.82	₹4.41	₹4.85	+24.2%
ROE	13.4%	17.2%	16.9%	16.0%	—
ROCE	2.9%	12.8%	13.4%	12.5%	—
Total Debt	₹69 Cr	₹80 Cr	₹88 Cr	₹103 Cr	+14.4%
Free Cash Flow	₹1 Cr	-₹2 Cr	₹5 Cr	-₹2 Cr	—

🟢 Revenue has grown at 16.3% a year over 3 years.

🟢 EBITDA has grown at 82.4% a year over 3 years.

🟢 EBITDA Margin has risen from 22.2% to 85.6% over 3 years (+63.4 pts).

🟢 PAT (Net Profit) has grown at 24.2% a year over 3 years.

🟢 EPS has grown at 24.2% a year over 3 years.

🟢 ROE has risen from 13.4% to 16.0% over 3 years (+2.5 pts).

🟢 ROCE has risen from 2.9% to 12.5% over 3 years (+9.6 pts).

🔴 Total Debt has grown at 14.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹126 Cr

Total Liabilities

₹105 Cr

Total Debt

₹103 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.9%

Corporate Actions

Dividend Rate

₹0.6

Ex-Dividend Date

21 Aug 2026

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

1 positive5 general

Qgo Finance Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 16 Oct

Qgo Finance allots ₹1 crore unsecured NCDs at 12% coupon

scanx.trade, 06 Jul

Qgo Finance Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

QGO Finance Limited Opens Special Window for Transfer and Dematerialisation of Physical Securities

scanx.trade, 24 Apr

QGO Finance FY26 net profit rises 10% to ₹337.28 lakh

scanx.trade, 28 MayResults

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

QGO FINANCE LIMITED Share Price

Upstox, 28 Mar

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.

DalalBaazaar Thesis

🟢Business QualityStrong17.5/20

🟢Financial HealthStrong17/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong12.8/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4.4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 12% a year16.3% CAGR
✓EBITDA margin holds above 84%85.6%
✓Return on equity stays above 14%16.0%
✗Interest cover stays above 3x1.4x
✓Valuation vs its own median of 14.3x8.1x today