Shri Niwas Leasing & Finance Limited

Financial Services — Credit Services · BSE

₹18.16−₹0.95 (−4.97%)

DalalBaazaar Score

27 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, negative free cash flow, 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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shri Niwas Leasing & Finance Limited, a non-banking finance company, engages in financing and trading in shares business in India. It is also involved in the sale, purchase, and trade of equity shares, investments, and loans; and investment activities.

IndustryCredit Services

SectorFinancial Services

Employees5

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹101343 reaches shareholders as profit, with ₹101411 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹20.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹20.9 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.

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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +263% while net margin moved -2260291% 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+263%

Margin effect-2260291%

DalalBaazaar Score

27/ 100

Weak

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

29/ 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

6.4x

Sector Median

17.0x

median of 4 sector peers

🟢Against its sector it trades 62% 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 · -62%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

1.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 55.0% to 101410.9% over 3 years.

🔴 What Needs Attention1

Inventory building faster than sales
Inventory is up 81189% against revenue growth of 263% — stock may not be moving.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 566% 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 55.0% to 101410.9%. 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 62% 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.
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 40% a year✓ 53.7% CAGR
Latest reported year was -64.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 101409%✓ 101410.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.

Investment Checklist

6 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ 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

2 good · 4 neutral · 5 weak

Market Cap

₹80 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.4x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹2.83

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

89.2%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

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

Revenue Growth (YoY)

-64.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-99.9%

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

-₹130 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

64.1%

Good

Healthy core-business profitability

Net Margin

1009.7%

Good

Strong bottom-line conversion

Current Ratio

957.90

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.21

Defensive

Steadier than the market

52W Range Position

83%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

16.7 / 14.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

65.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹1 Cr	₹1 Cr	+53.7%
EBITDA	₹0 Cr	-₹0 Cr	-₹1,163 Cr	₹1,060 Cr	+1785.1%
EBITDA Margin	55.0%	-88.3%	-218394.5%	101410.9%	—
PAT (Net Profit)	-₹0 Cr	-₹1 Cr	-₹1,164 Cr	₹1,060 Cr	—
EPS	₹-0.02	₹-2.06	₹-1,763.26	₹241.01	—
ROE	-0.4%	-64.1%	—	—	—
ROCE	0.2%	-40.1%	-99.7%	89.2%	—
Total Debt	—	₹0 Cr	₹1,163 Cr	₹1,165 Cr	—
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹0 Cr	-₹130 Cr	—

🟢 Revenue has grown at 53.7% a year over 3 years.

🟢 EBITDA has grown at 1785.1% a year over 3 years.

🟢 EBITDA Margin has risen from 55.0% to 101410.9% over 3 years (+101355.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹1,060 Cr.

🟢 EPS has turned positive, from ₹-0.02 to ₹241.01.

🟢 ROCE has risen from 0.2% to 89.2% over 3 years (+88.9 pts).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹130 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,189 Cr

Total Liabilities

₹1,271 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹130 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.9%

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 positive5 general

Shri Niwas Leasing And Finance Ltd. Upper Circuit: Price and Key Data

Univest, 23 Sept

Shri Niwas Leasing appoints Gajra, accepts two independent director resignations

scanx.trade, 14 Oct

Shri Niwas Leasing & Finance Ltd Partly Paidup Share Price

Business Today, 05 Mar

Shri Niwas Leasing CS Ravi Kumar Dhaker resigns citing personal reasons

scanx.trade, 06 Oct

GIC Housing Finance consolidated net profit rises 35.85% in the June 2026 quarter

Business Standard, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

₹25 Crore Became ₹1,000 Crore? SEBI Unravels Alleged Round-tripping in Dhenu Buildcon

Moneylife, 20 Aug

Watch Items

Revenue growth is negative (-64.6%) on the latest reported period — check if this is one-off or a trend.
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.

DalalBaazaar Thesis

StrongGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Shri Niwas Leasing & 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. 1 high-severity red flag sits above this conclusion and should be read first.

All 2 tripwires holding · see Key things to watch ↑