Regency Fincorp Limited

Financial Services — Credit Services · BSE

₹67.00−₹1.10 (−1.62%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:04 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 Regency Fincorp Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Regency Fincorp Limited operates as a non-banking financial company in India. It offers micro-business/personal loans, merchant financing, MSME loans, and women entrepreneurs' loans, as well as loans against property.

IndustryCredit Services

SectorFinancial Services

Employees159

Annual revenue₹36 Cr

How does it make money?

Turns over ₹36 Cr a year. Of every ₹100 of sales, about ₹37 reaches shareholders as profit, with ₹60 left at the operating level before interest, tax and depreciation. Each of its 159 employees supports ₹22.5 lakh of revenue a year, the signature of a people-led business.

EBITDA margin59.9%

Net margin37.5%

Revenue / employee₹22.5 lakh

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.

ROCE7.2%

ROE8.4%

Peer median ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +166% while net margin moved +446% 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+166%

Margin effect+446%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.61 — 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
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk

Quality vs. Valuation

Company Quality

83/ 100

Excellent

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

Valuation

56/ 100

Fair

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

33.0x

3Y Median

43.0x

40 monthly readings · mean 39.4x · range 11.5x–81.1x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 23% below its 3y median of 43.0x. 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 94% above the peer median of 17.0x.

vs. its own history

Cheap

43.0x median over 40 months · -23%

vs. sector peers

Expensive

17.0x median of 4 peers · +94%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

33.0x

P/B

3.35x

EV/EBITDA

31.7x

PEG

0.23

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 12.2% to 59.9% over 3 years.
Return on capital is rising
ROCE has improved from 2.6% to 7.2%.
Valuation below its historical average
At 33.0x the stock trades 23% below its own median of 43.0x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 468% against revenue growth of 166% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 650% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.2% to 59.9%. 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 23% 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.
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?

A premium to the sector to defend
It trades 94% above the peer median. That premium needs a reason that persists, or it closes.
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 29% a year✓ 38.5% CAGR
Latest reported year was 75.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 58%✓ 59.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✓ 8.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 43.0x✓ 33.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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

4 good · 6 neutral · 1 weak

Market Cap

₹537 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.0x

Fair

Fairly valued against the generic band

P/B Ratio

3.35x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.03

Profitable

Profitable on a per-share basis

ROE

8.4%

Moderate

Moderate capital efficiency

ROCE

7.2%

Weak

Low return on total capital employed

Debt/Equity

0.97x

Moderate

Moderate leverage

Revenue Growth (YoY)

75.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

75.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹23 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹67

Operating Margin

76.0%

Good

Healthy core-business profitability

Net Margin

49.3%

Good

Strong bottom-line conversion

Current Ratio

2.78

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.61

Defensive

Steadier than the market

52W Range Position

90%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

51.8 / 48.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

82.9

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹15 Cr	₹20 Cr	₹36 Cr	+38.5%
EBITDA	₹2 Cr	₹4 Cr	₹8 Cr	₹21 Cr	+135.2%
EBITDA Margin	12.2%	25.8%	40.3%	59.9%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹5 Cr	₹13 Cr	+143.9%
EPS	₹0.87	₹0.51	₹0.78	₹1.47	+19.1%
ROE	6.8%	3.9%	4.1%	8.4%	—
ROCE	2.6%	2.5%	3.9%	7.2%	—
Total Debt	₹90 Cr	₹95 Cr	₹105 Cr	₹156 Cr	+20.2%
Free Cash Flow	₹11 Cr	₹6 Cr	₹9 Cr	₹23 Cr	+29.8%

🟢 Revenue has grown at 38.5% a year over 3 years.

🟢 EBITDA has grown at 135.2% a year over 3 years.

🟢 EBITDA Margin has risen from 12.2% to 59.9% over 3 years (+47.7 pts).

🟢 PAT (Net Profit) has grown at 143.9% a year over 3 years.

🟢 EPS has grown at 19.1% a year over 3 years.

🟢 ROE has risen from 6.8% to 8.4% over 3 years (+1.6 pts).

🟢 ROCE has risen from 2.6% to 7.2% over 3 years (+4.6 pts).

🔴 Total Debt has grown at 20.2% a year over 3 years.

🟢 Free Cash Flow has grown at 29.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹330 Cr

Total Liabilities

₹170 Cr

Total Debt

₹156 Cr

Cash & Equivalents

₹11 Cr

Operating Cash Flow

₹27 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

2.0%

Insider Holding

60.4%

Corporate Actions

Ex-Dividend Date

12 Sept 2019

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

Regency Fincorp Ltd. Share Price Rise Streak and Valuation

Univest, 15 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.

Regency Fincorp board approves ₹312 crore preferential issue and ESOP 2026

scanx.trade, 16 Oct

Regency Fincorp ના રોકાણકારો માટે અપડેટ: કંપની લાવશે ₹45 કરોડના NCD, મળશે 13% વ્યાજ

Whalesbook, 13 Oct

Regency Fincorp Share Price Rises 10% After NCD Approval

Univest, 06 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.

Regency Fincorp Approves Rs 45 Crore NCD Issuance at 13% Coupon

Whalesbook, 13 Oct

Regency Fincorp secures BSE approval for NCD debt listing

scanx.trade, 07 Oct

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
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 overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🟢Business QualityStrong17.5/20

🟢Financial HealthStrong17/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate8.9/15

🟡ValuationFair9.5/15

🔴RiskHigh4.4/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Revenue growth stays above 29% a year38.5% CAGR
✓EBITDA margin holds above 58%59.9%
✓Return on equity stays above 8%8.4%
✓Valuation vs its own median of 43.0x33.0x today