Team India Guaranty Limited

Financial Services — Asset Management · NSE

₹240.00−₹0.34 (−0.14%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

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, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Team India Guaranty Limited, a non-deposit accepting non-banking financial company, provides investment services in India. The company focuses to invest own funds in safe debt instruments/eligible deposits; and undertaking lending activities.

IndustryAsset Management

SectorFinancial Services

Employees30

Annual revenue₹4 Cr

How does it make money?

Turns over ₹4 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 30 employees supports ₹14.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin31.8%

Net margin16.4%

Revenue / employee₹14.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

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.

ROCE2.8%

ROE1.5%

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 +348% while net margin moved -83% 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+348%

Margin effect-83%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 198.3x is demanding — it needs sustained high growth to justify
✗ P/E is 106% above its own historical median of 96.4x — expensive by its own standards

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

26/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

198.3x

3Y Median

96.4x

40 monthly readings · mean 113.1x · range 61.2x–303.7x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 106% above its 3y median of 96.4x. 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 1067% above the peer median of 17.0x.

vs. its own history

Expensive

96.4x median over 40 months · +106%

vs. sector peers

Expensive

17.0x median of 4 peers · +1067%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

198.3x

P/B

4.78x

EV/EBITDA

151.7x

PEG

—

Dividend Yield

None

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

Margins are compressing
EBITDA margin has slipped from 110.4% to 31.8% over 3 years.
Valuation above its historical average
At 198.3x the stock trades 106% above its own median of 96.4x.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 78.6 points, from 110.4% to 31.8%.
🟡Profit is decliningFinancial
Net profit is down 23% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 110.4% to 31.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 106% 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.

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

1Revenue growth stays above 49% a year✓ 64.8% CAGR
Latest reported year was 124.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 30%✓ 31.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 1.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 96.4x✗ 198.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ 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

3 good · 4 neutral · 4 weak

Market Cap

₹216 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

198.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

4.78x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.21

Profitable

Profitable on a per-share basis

ROE

1.5%

Weak

Weak capital efficiency

ROCE

2.8%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

124.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

67.7%

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

-₹37 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹240

Operating Margin

26.4%

Good

Healthy core-business profitability

Net Margin

15.5%

Good

Strong bottom-line conversion

Current Ratio

79.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

239.6 / 235.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹2 Cr	₹2 Cr	₹4 Cr	+64.8%
EBITDA	₹1 Cr	₹2 Cr	₹3 Cr	₹1 Cr	+8.9%
EBITDA Margin	110.4%	146.6%	172.1%	31.8%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹2 Cr	₹1 Cr	-8.5%
EPS	₹1.05	₹1.98	₹2.61	₹0.8	-8.8%
ROE	2.1%	3.9%	4.9%	1.5%	—
ROCE	2.5%	5.2%	5.9%	2.8%	—
Free Cash Flow	₹9 Cr	-₹1 Cr	-₹1 Cr	-₹37 Cr	—

🟢 Revenue has grown at 64.8% a year over 3 years.

🟢 EBITDA has grown at 8.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 110.4% to 31.8% over 3 years (-78.6 pts).

🔴 PAT (Net Profit) has shrunk at 8.5% a year over 3 years.

🔴 EPS has shrunk at 8.8% a year over 3 years.

🟡 ROE has held roughly flat at 1.5% over 3 years.

🟡 ROCE has held roughly flat at 2.8% over 3 years.

🔴 Free Cash Flow has turned negative, from ₹9 Cr to -₹37 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹50 Cr

Total Liabilities

₹1 Cr

Total Debt

—

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹37 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.7%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

3 mixed3 general

Team India Guaranty submits clarification on director resignation

scanx.trade, 13 Oct

Team India Guaranty Share: Bull Case vs Bear Case for 2026

Univest, 25 Sept

Team India Guaranty TEAMGTY Q2 FY27 Reg 74(5) Certificate

Kalkine India, 13 OctResults

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

Team India Guaranty Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Team India Guaranty closes trading window from October 1 for Q2FY27 results

scanx.trade, 24 SeptResults

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

Team India Guaranty TEAMGTY Trading Window Closure Q2 FY27

Kalkine India, 24 SeptResults

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

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟢Business QualityStrong15.9/20

🟢Financial HealthStrong17/20

🟡GrowthModest9.3/20

🟡ProfitabilityModerate7.9/15

🔴ValuationDemanding4.9/15

🔴RiskHigh4/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 49% a year64.8% CAGR
✓EBITDA margin holds above 30%31.8%
✗Return on equity stays above 8%1.5%
✗Valuation vs its own median of 96.4x198.3x today