Rikhav Securities Limited

Financial Services — Capital Markets · BSE

₹53.50+₹1.40 (+2.69%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Rikhav Securities Limited operates as a managed shares and stocks broking company in India.

IndustryCapital Markets

SectorFinancial Services

Employees208

Annual revenue₹1,992 Cr

How does it make money?

Turns over ₹1,992 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 208 employees supports ₹9.57 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹9.57 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

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.

Peer median ROE13.7%

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 +3556% while net margin moved -97% 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+3556%

Margin effect-97%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

64/ 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

10.8x

2Y Median

6.5x

23 monthly readings · mean 7.0x · range 5.3x–10.9x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 66% above its 2y median of 6.5x. 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 58.4x.

vs. its own history

Expensive

6.5x median over 23 months · +66%

vs. sector peers

Cheap

58.4x median of 3 peers · -81%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 20.1% to 7.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.0% to 11.2% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 48.5 points, from 50.0% to 1.5%.

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.
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 50.0% to 1.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 66% 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.
Returns on shareholder capital are falling
ROE has dropped from 20.1% to 7.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 174% a year✓ 231.9% CAGR
Latest reported year was 593.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 1.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✓ 8.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 6.5x✗ 10.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹205 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.8x

Cheap

Cheap against the generic band

P/B Ratio

0.83x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.95

Profitable

Profitable on a per-share basis

ROE

8.0%

Moderate

Moderate capital efficiency

ROCE

11.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

3.54x

High

High leverage

Revenue Growth (YoY)

593.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-19.9%

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

₹60 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

5.5%

Average

Average asset productivity

Operating Margin

0.1%

Weak

Thin margins leave little room for error

Net Margin

1.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.58

Comfortable

Healthy short-term liquidity

52W Range Position

51%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

52.5 / 48.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

41.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹54 Cr	₹111 Cr	₹328 Cr	₹1,992 Cr	+231.9%
EBITDA	₹27 Cr	₹52 Cr	₹32 Cr	₹29 Cr	+2.1%
EBITDA Margin	50.0%	47.5%	9.9%	1.5%	—
PAT (Net Profit)	₹19 Cr	₹42 Cr	₹24 Cr	₹19 Cr	-0.2%
EPS	₹4.99	₹11.02	₹7.51	—	—
ROE	20.1%	30.5%	10.4%	7.7%	—
ROCE	28.0%	37.3%	13.9%	11.2%	—
Total Debt	₹10 Cr	₹40 Cr	₹0 Cr	₹56 Cr	+78.0%
Free Cash Flow	-₹10 Cr	₹108 Cr	-₹186 Cr	₹60 Cr	—

🟢 Revenue has grown at 231.9% a year over 3 years.

🟢 EBITDA has grown at 2.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 50.0% to 1.5% over 3 years (-48.5 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-0.2% a year).

🔴 ROE has fallen from 20.1% to 7.7% over 3 years (-12.4 pts).

🔴 ROCE has fallen from 28.0% to 11.2% over 3 years (-16.8 pts).

🔴 Total Debt has grown at 78.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹10 Cr to ₹60 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹398 Cr

Total Liabilities

₹153 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹65 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

70.0%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

2 mixed4 general

Rikhav Securities Share Price Fall: Finance Sector Context

Univest, 01 OctPrice 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.

Rikhav Securities open offer at ₹47.75 per share

scanx.trade, 24 Jul

Rikhav Securities Announces Promoter Group Open Offer for Up to 26% Stake

ANI News, 24 Apr

Rikhav Securities Limited Share Price

Upstox, 05 May

Rikhav Securities Share Price update with valuation view

Univest, 22 Sept

Rikhav Securities hosts virtual analyst meeting on Sep 24

scanx.trade, 24 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

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

StrongFinancial Health · Valuation

MiddlingGrowth

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

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.

1 of 4 tripwires tripped — Valuation vs its own median of 6.5x · see Key things to watch ↑