TCFC Finance Limited

Financial Services — Capital Markets · BSE

₹25.00−₹0.50 (−1.96%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

TCFC Finance Limited operates as a non-banking finance company primarily in India. It engages in the finance and investment businesses, as well as the trading of equity shares, mutual funds, debt instruments, listed and unlisted, securities, etc.

IndustryCapital Markets

SectorFinancial Services

Employees8

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹-55 reaches shareholders as profit, with ₹-94 left at the operating level before interest, tax and depreciation. Each of its 8 employees supports ₹41.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹41.2 lakh

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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -36% while net margin moved -574% 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-36%

Margin effect-574%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 13.9% a year

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

52/ 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

41.7x

3Y Median

24.8x

40 monthly readings · mean 40.8x · range 3.9x–147.6x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 68% above its 3y median of 24.8x. 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 29% below the peer median of 58.4x.

vs. its own history

Expensive

24.8x median over 40 months · +68%

vs. sector peers

Cheap

58.4x median of 3 peers · -29%

vs. generic bands

Expensive

Above 35x

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 Attention2

Return on capital is falling
ROCE has declined from 0.9% to -3.1% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 31% against revenue growth of -36% — stock may not be moving.

Red Flags

2 items require attention · 2 high

🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 111.5 points, from 17.4% to -94.2%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 17.4% to -94.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 68% 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above -96%✓ -94.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 0.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 24.8x✗ 41.7x 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

₹24 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

41.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.23x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.6

Profitable

Profitable on a per-share basis

ROE

0.5%

Weak

Weak capital efficiency

ROCE

-3.1%

Weak

Low return on total capital employed

Debt/Equity

1.06x

Moderate

Moderate leverage

Revenue Growth (YoY)

42.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

138.6%

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

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

-1.5%

Weak

Assets generate little profit

Operating Margin

74.5%

Good

Healthy core-business profitability

Net Margin

48.7%

Good

Strong bottom-line conversion

Current Ratio

31.39

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

24.6 / 25.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5 Cr	₹6 Cr	₹3 Cr	₹3 Cr	-13.9%
EBITDA	₹1 Cr	₹16 Cr	₹1 Cr	-₹3 Cr	—
EBITDA Margin	17.4%	286.4%	44.3%	-94.2%	—
PAT (Net Profit)	₹1 Cr	₹12 Cr	₹1 Cr	-₹2 Cr	—
EPS	₹0.6	₹12.35	₹1.22	₹-1.82	—
ROE	0.6%	11.2%	1.1%	-1.7%	—
ROCE	0.9%	14.0%	1.2%	-3.1%	—
Total Debt	₹0 Cr	—	₹0 Cr	₹1 Cr	+213.1%
Free Cash Flow	-₹0 Cr	-₹2 Cr	-₹1 Cr	-₹2 Cr	—

🔴 Revenue has shrunk at 13.9% a year over 3 years.

🔴 EBITDA has turned negative, from ₹1 Cr to -₹3 Cr.

🔴 EBITDA Margin has fallen from 17.4% to -94.2% over 3 years (-111.5 pts).

🔴 PAT (Net Profit) has turned negative, from ₹1 Cr to -₹2 Cr.

🔴 EPS has turned negative, from ₹0.6 to ₹-1.82.

🔴 ROE has fallen from 0.6% to -1.7% over 3 years (-2.3 pts).

🔴 ROCE has fallen from 0.9% to -3.1% over 3 years (-4.0 pts).

🔴 Total Debt has grown at 213.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹110 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.8%

Corporate Actions

Ex-Dividend Date

23 Jul 2024

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

1 positive5 general

TCFC Finance Ltd. Peer Comparison – Compare with Others

Value Research, 03 Sept

Compare TCFC FINANCE with

Equitymaster, 07 Oct

TCFC Finance revises record date for share capital reduction to June 8

scanx.trade, 25 May

TCFC Finance Q1 Results: Net profit up 138% YoY to ₹414 lakh

scanx.trade, 13 AugResults

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

TCFCFINQ Stock Price and Chart — BSE:TCFCFINQ

TradingView, 13 Aug

TCFC Finance to transfer unclaimed shares to IEPF

scanx.trade, 07 Jun

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

MiddlingBusiness Quality · Profitability

WeakGrowth · Valuation · 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. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 3 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 24.8x · see Key things to watch ↑