Reliance Home Finance Limited

Financial Services — Mortgage Finance · BSE

₹1.51−₹0.03 (−1.95%)

DalalBaazaar Score

16 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, but sales are shrinking. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Reliance Home Finance Limited engages in the housing finance business in India. The company offers a range of loans, such as home and affordable housing loans, loans against properties, and construction finance loans. It also provides property services.

IndustryMortgage Finance

SectorFinancial Services

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹10860 reaches shareholders as profit, with ₹-1852 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -100% while net margin moved -493% 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-100%

Margin effect-493%

DalalBaazaar Score

16/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

15/ 100

Weak

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

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

3.1x

3Y Median

0.0x

40 monthly readings · mean 0.0x · range 0.0x–0.1x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 10780% above its 3y median of 0.0x. 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 81% below the peer median of 17.0x.

vs. its own history

Expensive

0.0x median over 40 months · +10780%

vs. sector peers

Cheap

17.0x median of 4 peers · -81%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

—

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 0.02 — near-term obligations exceed near-term assets.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 1348.1 points, from -504.1% to -1852.2%.
🟡Low reported insider holdingOwnership
Reported insider holding is 3.2%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 81% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from -504.1% to -1852.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 10780% 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

1EBITDA margin holds above -1854%✓ -1852.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Valuation vs its own median of 0.0x✗ 3.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

4 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ 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

4 good · 4 neutral · 3 weak

Market Cap

₹73 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.1x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹0.48

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not meaningful

N/A for lenders

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

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

-64.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

781.2%

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

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

153.9%

Good

Assets are working hard

Operating Margin

432.0%

Good

Healthy core-business profitability

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.02

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1.6 / 1.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

26.7

Oversold zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹197 Cr	₹382 Cr	₹1 Cr	₹0 Cr	-89.6%
EBITDA	-₹992 Cr	-₹8,819 Cr	-₹4 Cr	-₹4 Cr	—
EBITDA Margin	-504.1%	-2308.9%	-616.2%	-1852.2%	—
PAT (Net Profit)	-₹5,440 Cr	₹5,419 Cr	-₹4 Cr	₹24 Cr	—
EPS	₹-112.15	₹111.71	₹-0.07	—	—
Total Debt	₹11,917 Cr	₹1 Cr	₹91 Cr	₹40 Cr	-85.0%
Free Cash Flow	-₹598 Cr	₹4,103 Cr	-₹22 Cr	₹9 Cr	—

🔴 Revenue has shrunk at 89.6% a year over 3 years.

🔴 EBITDA Margin has fallen from -504.1% to -1852.2% over 3 years (-1348.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹5,440 Cr to ₹24 Cr.

🟢 Total Debt has shrunk at 85.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹598 Cr to ₹9 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹2 Cr

Total Liabilities

₹55 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹9 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

1.5%

Insider Holding

3.2%

Corporate Actions

Ex-Dividend Date

12 Sept 2018

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 mixed1 negative4 general

Reliance Home Finance Ltd (RHFL) Share Price

Business Today, 16 Oct

Reliance Home Finance Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Reliance Home Finance Limited Intimates 8th Committee of Creditors Meeting Under CIRP

scanx.trade, 06 Apr

Why Is Reliance Home Finance Share Price Falling Key Reasons 2026

Univest, 24 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

ED Attaches 31 Properties Worth ₹581.65 Crore in Reliance Home Finance Bank Fraud Case

Moneylife, 13 MarRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

Reliance Power and Arm Get CBI Pre-Cognizance Notice Over Alleged PMLA Violations

Sahi, 18 Aug

Watch Items

Revenue growth is negative (-64.0%) on the latest reported period — check if this is one-off or a trend.
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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Reliance Home Finance Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 2 tripwires tripped — Valuation vs its own median of 0.0x · see Key things to watch ↑