Real Touch Finance Limited

Financial Services — Credit Services · BSE

₹34.00₹0.00 (0.00%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Real Touch Finance Limited operates as a non-banking financial company in India. It provides personal loans, personal loans for education expenses, loans for business purposes against property mortgages, lending to financial institutions, and structured finance products.

IndustryCredit Services

SectorFinancial Services

Employees28

Annual revenue₹39 Cr

How does it make money?

Turns over ₹39 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation. Each of its 28 employees supports ₹1.38 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.38 Cr

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.

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 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 +279% while net margin moved -48% 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+279%

Margin effect-48%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.48 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

80/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

8.7x

3Y Median

16.0x

40 monthly readings · mean 20.1x · range 8.3x–39.5x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 45% below its 3y median of 16.0x. 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 49% below the peer median of 17.0x.

vs. its own history

Cheap

16.0x median over 40 months · -45%

vs. sector peers

Cheap

17.0x median of 4 peers · -49%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

21.7x

PEG

0.34

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 6.7% to 9.9%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.6 points, from 41.3% to 35.8%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 45% 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.
Cheaper than its peers
It trades 49% 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 41.3% to 35.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 42% a year✓ 55.9% CAGR
Latest reported year was -33.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 34%✓ 35.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✓ 9.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 16.0x✓ 8.7x 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

₹43 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.7x

Cheap

Cheap against the generic band

P/B Ratio

0.83x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.9

Profitable

Profitable on a per-share basis

ROE

9.9%

Moderate

Moderate capital efficiency

ROCE

2.9%

Weak

Low return on total capital employed

Debt/Equity

4.91x

High

High leverage

Revenue Growth (YoY)

-33.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-12.5%

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

₹33 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

52.7%

Good

Healthy core-business profitability

Net Margin

35.4%

Good

Strong bottom-line conversion

Current Ratio

4.46

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.48

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

37.2 / 42.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹10 Cr	₹19 Cr	₹28 Cr	₹39 Cr	+55.9%
EBITDA	₹4 Cr	₹5 Cr	₹6 Cr	₹14 Cr	+48.5%
EBITDA Margin	41.3%	26.2%	21.8%	35.8%	—
PAT (Net Profit)	₹3 Cr	₹3 Cr	₹5 Cr	₹5 Cr	+25.6%
EPS	₹2.06	₹2.07	₹3.57	₹4.08	+25.6%
ROE	6.7%	6.3%	9.8%	9.9%	—
ROCE	2.9%	2.3%	4.7%	2.9%	—
Total Debt	₹87 Cr	₹139 Cr	₹165 Cr	₹256 Cr	+43.6%
Free Cash Flow	-₹88 Cr	-₹50 Cr	-₹26 Cr	₹33 Cr	—

🟢 Revenue has grown at 55.9% a year over 3 years.

🟢 EBITDA has grown at 48.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 41.3% to 35.8% over 3 years (-5.6 pts).

🟢 PAT (Net Profit) has grown at 25.6% a year over 3 years.

🟢 EPS has grown at 25.6% a year over 3 years.

🟢 ROE has risen from 6.7% to 9.9% over 3 years (+3.3 pts).

🟡 ROCE has held roughly flat at 2.9% over 3 years.

🔴 Total Debt has grown at 43.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹88 Cr to ₹33 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹322 Cr

Total Liabilities

₹269 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹33 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

83.4%

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

1 mixed5 general

Real Touch Finance names Mathangi G as CFO; proposes two directors

scanx.trade, 09 Oct

Real Touch Finance Limited Announces Appointment of Mrs. Mathangi G as Chief Financial Officer, Effective October 9, 2026

www.marketscreener.com, 09 Oct

Ramp’s CEO on building zero-touch finance

McKinsey & Company, 03 Mar

FX MULTITECH LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 07 Oct

Kesoram Industries reports consolidated net loss of Rs 20.19 crore in the June 2026 quarter

Business Standard, 01 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Real Touch Finance Ltd. Share Price

Business Today, 31 Jan

Watch Items

Revenue growth is negative (-33.9%) 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.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth · Risk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 4 tripwires holding · see Key things to watch ↑