Shalibhadra Finance Limited

Financial Services — Credit Services · NSE

₹77.00−₹1.00 (−1.28%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shalibhadra Finance Limited operates as an asset finance company in India. The company offers new and used two-wheeler, used three/four-wheeler, auto rickshaw, cars, property, and consumer durable loans. It sells its products through its branches.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹41 Cr

How does it make money?

Turns over ₹41 Cr a year. Of every ₹100 of sales, about ₹48 reaches shareholders as profit, with ₹73 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, 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +48% while net margin moved +57% 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+48%

Margin effect+57%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.00 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

82/ 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

12.0x

Sector Median

17.0x

median of 4 sector peers

🟢Against its sector it trades 29% below the peer median of 17.0x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

17.0x median of 4 peers · -29%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.9x

PEG

0.37

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 65.8% to 72.7% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 191% against revenue growth of 48% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 23% 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 65.8% to 72.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 29% 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?

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 10% a year✓ 14.0% CAGR
Latest reported year was 7.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 71%✓ 72.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 9%✓ 11.3%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 4x✓ 7.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 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

₹238 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.0x

Cheap

Cheap against the generic band

P/B Ratio

1.38x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.41

Profitable

Profitable on a per-share basis

ROE

11.3%

Moderate

Moderate capital efficiency

ROCE

14.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.33x

Low

Conservative leverage

Revenue Growth (YoY)

7.7%

Modest

Modest growth

Profit Growth (YoY)

7.4%

Modest

Slow profit growth

Dividend Yield

0.65%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

70.2%

Good

Healthy core-business profitability

Net Margin

54.2%

Good

Strong bottom-line conversion

Current Ratio

5.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.00

Defensive

Steadier than the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

77.3 / 77.7

Bearish alignment (short < long)

RSI (14)

48.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹27 Cr	₹32 Cr	₹35 Cr	₹41 Cr	+14.0%
EBITDA	₹18 Cr	₹22 Cr	₹24 Cr	₹30 Cr	+17.8%
EBITDA Margin	65.8%	66.8%	69.6%	72.7%	—
PAT (Net Profit)	₹8 Cr	₹12 Cr	₹16 Cr	₹19 Cr	+32.5%
EPS	₹3.83	₹4.47	₹4.32	₹6.31	+18.1%
ROE	10.7%	12.4%	10.4%	11.3%	—
ROCE	13.2%	14.8%	13.9%	14.4%	—
Total Debt	₹55 Cr	₹58 Cr	₹37 Cr	₹56 Cr	+0.6%
Free Cash Flow	-₹5 Cr	₹2 Cr	-₹28 Cr	-₹21 Cr	—

🟢 Revenue has grown at 14.0% a year over 3 years.

🟢 EBITDA has grown at 17.8% a year over 3 years.

🟢 EBITDA Margin has risen from 65.8% to 72.7% over 3 years (+6.9 pts).

🟢 PAT (Net Profit) has grown at 32.5% a year over 3 years.

🟢 EPS has grown at 18.1% a year over 3 years.

🟡 ROE has held roughly flat at 11.3% over 3 years.

🟢 ROCE has risen from 13.2% to 14.4% over 3 years (+1.3 pts).

🟡 Total Debt has been broadly flat over 3 years (0.6% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹232 Cr

Total Liabilities

₹60 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹20 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.5%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

23 Sept 2026

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

SAHLIBHFI Stock Price and Chart — NSE:SAHLIBHFI

TradingView, 10 Apr

Shalibhadra Finance approves ₹24 crore NCD issuance on private placement

scanx.trade, 13 Oct

Shalibhadra Finance Insiders Added ₹52.1m Of Stock To Their Holdings

Simply Wall Street, 30 May

Shalibhadra Finance Ltd. Share Price Update on Price Fall

Univest, 13 AugPrice 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.

Shalibhadra Finance eyes Rs 500 crore AUM as FY26 profit climbs 22%

The Economic Times, 30 May

Shalibhadra Finance Ltd

Equitypandit, 10 May

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

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

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.

All 4 tripwires holding · see Key things to watch ↑