Richfield Financial Services Limited

Financial Services — Credit Services · BSE

₹18.44₹0.00 (0.00%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 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 Richfield Financial Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Richfield Financial Services Limited, a non-banking finance company, engages in investment and financing activities in India. It offers gold and personal loans. The company was incorporated in 1992 and is based in Kochi, India.

IndustryCredit Services

SectorFinancial Services

Employees216

Annual revenue₹12 Cr

How does it make money?

Turns over ₹12 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 216 employees supports ₹5.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin12.0%

Net margin2.9%

Revenue / employee₹5.6 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.

ROCE0.5%

ROE2.5%

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 +65801% while net margin moved -94% 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+65801%

Margin effect-94%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.09 — 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

60/ 100

Average

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

Valuation

59/ 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

24.6x

3Y Median

164.6x

40 monthly readings · mean 563.8x · range 15.0x–3818.0x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 85% below its 3y median of 164.6x. 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 45% above the peer median of 17.0x.

vs. its own history

Cheap

164.6x median over 40 months · -85%

vs. sector peers

Expensive

17.0x median of 4 peers · +45%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

24.6x

P/B

1.26x

EV/EBITDA

56.1x

PEG

0.10

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 24.6x the stock trades 85% below its own median of 164.6x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 296.7% to 12.0% over 3 years.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 284.7 points, from 296.7% to 12.0%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 29% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 85% 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?

Margins are being competed away
EBITDA margin has fallen from 296.7% to 12.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 45% 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 578% a year✓ 770.2% CAGR
Latest reported year was 121.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 2.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 164.6x✓ 24.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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 · 3 neutral · 4 weak

Market Cap

₹18 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.6x

Fair

Fairly valued against the generic band

P/B Ratio

1.26x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.75

Profitable

Profitable on a per-share basis

ROE

2.5%

Weak

Weak capital efficiency

ROCE

0.5%

Weak

Low return on total capital employed

Debt/Equity

4.72x

High

High leverage

Revenue Growth (YoY)

121.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

169.2%

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

-₹48 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹18.44

Operating Margin

14.8%

Average

Average margins

Net Margin

6.0%

Average

Average bottom-line conversion

Current Ratio

46.82

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.09

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

17.9 / 19.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

57.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹2 Cr	₹4 Cr	₹12 Cr	+770.2%
EBITDA	₹0 Cr	₹1 Cr	-₹0 Cr	₹1 Cr	+198.6%
EBITDA Margin	296.7%	51.8%	-6.0%	12.0%	—
PAT (Net Profit)	₹0 Cr	₹1 Cr	₹0 Cr	₹0 Cr	+244.8%
EPS	₹0.01	₹1.73	₹0.17	₹0.37	+233.2%
ROE	0.1%	7.5%	1.5%	2.5%	—
ROCE	0.1%	8.9%	-1.3%	0.5%	—
Total Debt	—	₹1 Cr	₹26 Cr	₹67 Cr	—
Free Cash Flow	-₹2 Cr	-₹5 Cr	-₹21 Cr	-₹48 Cr	—

🟢 Revenue has grown at 770.2% a year over 3 years.

🟢 EBITDA has grown at 198.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 296.7% to 12.0% over 3 years (-284.7 pts).

🟢 PAT (Net Profit) has grown at 244.8% a year over 3 years.

🟢 EPS has grown at 233.2% a year over 3 years.

🟢 ROE has risen from 0.1% to 2.5% over 3 years (+2.4 pts).

🟡 ROCE has held roughly flat at 0.5% over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹85 Cr

Total Liabilities

₹70 Cr

Total Debt

₹67 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹47 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.5%

Corporate Actions

Ex-Dividend Date

07 Jun 2024

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

Richfield Financial Services Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Compare BOM.OXYGEN with

Equitymaster, 09 Oct

Richfield Financial Services approves NCD issuance at 34th AGM

scanx.trade, 24 Sept

Khoobsurat (BSE:535730) - Stock Analysis

Simply Wall Street, 11 Apr

Richfield Financial Services approves ₹10 crore unlisted NCD private placement

scanx.trade, 02 Sept

SOLLFEGE SMART ELECTRONICS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 09 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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 QualityWeak8.5/20

🟢Financial HealthStrong17/20

🟡GrowthModest12.9/20

🔴ProfitabilityWeak6.2/15

🟢ValuationAttractive12/15

🔴RiskHigh4/10

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 578% a year770.2% CAGR
✓EBITDA margin holds above 10%12.0%
✗Return on equity stays above 8%2.5%
✓Valuation vs its own median of 164.6x24.6x today