Ranjit Finance Limited

Financial Services — Credit Services · BSE

₹67.45−₹0.03 (−0.04%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, 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. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Ranjit Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ranjit Finance Limited operates as a non-deposit taking non-banking financial company in India. It offers financial services, including hire purchase, micro financing, personal loans, business loans, and mortgage loans.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation.

EBITDA margin28.6%

Net margin5.1%

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.

ROCE1.9%

ROE1.1%

Peer median ROE16.5%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +71% while net margin moved -80% 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+71%

Margin effect-80%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 749.4x is demanding — it needs sustained high growth to justify
✗ P/E is 1525% above its own historical median of 46.1x — expensive by its own standards

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

23/ 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

749.4x

1.0Y Median

46.1x

12 monthly readings · mean 108.6x · range 7.9x–269.8x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 1525% above its 1.0y median of 46.1x. 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 4310% above the peer median of 17.0x.

vs. its own history

Expensive

46.1x median over 12 months · +1525%

vs. sector peers

Expensive

17.0x median of 4 peers · +4310%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

749.4x

P/B

—

EV/EBITDA

47.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 36.5% to 28.6% over 3 years.
Return on capital is falling
ROCE has declined from 4.0% to 1.9% — often a sign of competition or overexpansion.
Valuation above its historical average
At 749.4x the stock trades 1525% above its own median of 46.1x.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.9 points, from 36.5% to 28.6%.
🟡Profit is decliningFinancial
Net profit is down 65% 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 36.5% to 28.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 1525% 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

1Revenue growth stays above 15% a year✓ 19.7% CAGR
Latest reported year was 58.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 27%✓ 28.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 1.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 46.1x✗ 749.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹18 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

749.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹0.09

Profitable

Profitable on a per-share basis

ROE

1.1%

Weak

Weak capital efficiency

ROCE

1.9%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

58.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-87.1%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹67.45

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

49.46

Comfortable

Healthy short-term liquidity

52W Range Position

53%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

61.9 / 61.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

74.4

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+19.7%
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+10.4%
EBITDA Margin	36.5%	12.5%	58.6%	28.6%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹1 Cr	₹0 Cr	-29.5%
EPS	₹0.71	₹0.25	₹1.93	₹0.25	-29.4%
ROE	3.5%	1.2%	8.7%	1.1%	—
ROCE	4.0%	3.6%	10.8%	1.9%	—
Total Debt	₹0 Cr	₹0 Cr	₹1 Cr	—	—
Free Cash Flow	₹0 Cr	₹1 Cr	-₹1 Cr	₹0 Cr	-56.9%

🟢 Revenue has grown at 19.7% a year over 3 years.

🟢 EBITDA has grown at 10.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 36.5% to 28.6% over 3 years (-7.9 pts).

🔴 PAT (Net Profit) has shrunk at 29.5% a year over 3 years.

🔴 EPS has shrunk at 29.4% a year over 3 years.

🔴 ROE has fallen from 3.5% to 1.1% over 3 years (-2.4 pts).

🔴 ROCE has fallen from 4.0% to 1.9% over 3 years (-2.1 pts).

🔴 Free Cash Flow has shrunk at 56.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

61.0%

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

6 general

Compare with GOLD.LEG.LEA

Equitymaster, 17 Oct

Ranjit Securities avails SEBI exemption from RPT disclosures for H1FY27

scanx.trade, 06 Oct

Compare TCFC FINANCE with

Equitymaster, 07 Oct

Ranjit Securities AGM on Sep 30; name change to Ranjit Finance proposed

scanx.trade, 30 Sept

US Rare Earth Pure Play: Fireside with Tactical Resources CEO Ranjeet Sundher

Yahoo Finance, 20 Aug

Oil India chairman Ranjit Rath among applicants for top job at ONGC

Business Standard, 09 Aug

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.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟡Business QualityAdequate10.5/20

🟢Financial HealthStrong17/20

🟡GrowthModest9.3/20

🔴ProfitabilityWeak4.5/15

🔴ValuationDemanding3/15

🔴RiskHigh2.3/10

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.

This thesis breaks if

✓Revenue growth stays above 15% a year19.7% CAGR
✓EBITDA margin holds above 27%28.6%
✗Return on equity stays above 8%1.1%
✗Valuation vs its own median of 46.1x749.4x today