Tilak Ventures Limited

Financial Services — Asset Management · BSE

₹1.30+₹0.01 (+0.78%)

DalalBaazaar Score

78 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, 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, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 Tilak Ventures Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tilak Ventures Limited operates in the commodity trading and financing businesses in India. It operates through two segments: Finance Business and Commodities Trading Business.

IndustryAsset Management

SectorFinancial Services

Employees5

Annual revenue₹34 Cr

How does it make money?

Turns over ₹34 Cr a year. Of every ₹100 of sales, about ₹28 reaches shareholders as profit, with ₹41 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹6.76 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin41.2%

Net margin28.5%

Revenue / employee₹6.76 Cr

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.

ROCE6.0%

ROE5.2%

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 +284% while net margin moved +7% 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+284%

Margin effect+7%

DalalBaazaar Score

78/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.32 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

80/ 100

Excellent

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

Valuation

84/ 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

11.8x

3Y Median

45.3x

40 monthly readings · mean 59.6x · range 10.4x–152.8x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 74% below its 3y median of 45.3x. 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 30% below the peer median of 17.0x.

vs. its own history

Cheap

45.3x median over 40 months · -74%

vs. sector peers

Cheap

17.0x median of 4 peers · -30%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

11.8x

P/B

0.75x

EV/EBITDA

10.4x

PEG

0.20

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Return on capital is rising
ROCE has improved from 3.9% to 6.0%.
Valuation below its historical average
At 11.8x the stock trades 74% below its own median of 45.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 49.5% to 41.2% over 3 years.
Inventory building faster than sales
Inventory is up 30640% against revenue growth of 284% — stock may not be moving.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.3 points, from 49.5% to 41.2%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 135% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 74% 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 30% 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 49.5% to 41.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 42% a year✓ 56.6% CAGR
Latest reported year was 97.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 39%✓ 41.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 5.2%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 45.3x✓ 11.8x 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 · 2 neutral · 5 weak

Market Cap

₹174 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.8x

Cheap

Cheap against the generic band

P/B Ratio

0.75x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.11

Profitable

Profitable on a per-share basis

ROE

5.2%

Weak

Weak capital efficiency

ROCE

6.0%

Weak

Low return on total capital employed

Debt/Equity

5.80x

High

High leverage

Revenue Growth (YoY)

97.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-67.3%

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

-₹23 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1.3

ROA

4.6%

Average

Average asset productivity

Operating Margin

29.8%

Good

Healthy core-business profitability

Net Margin

27.3%

Good

Strong bottom-line conversion

Current Ratio

501.94

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1.3 / 1.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

60.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9 Cr	₹16 Cr	₹25 Cr	₹34 Cr	+56.6%
EBITDA	₹4 Cr	₹8 Cr	₹9 Cr	₹14 Cr	+47.3%
EBITDA Margin	49.5%	48.4%	34.1%	41.2%	—
PAT (Net Profit)	₹2 Cr	₹5 Cr	₹6 Cr	₹10 Cr	+59.9%
EPS	₹0.04	₹0.07	₹0.08	₹0.07	+17.5%
ROE	3.2%	6.8%	4.5%	4.2%	—
ROCE	3.9%	9.1%	6.2%	6.0%	—
Total Debt	₹2 Cr	₹2 Cr	₹8 Cr	—	—
Free Cash Flow	₹6 Cr	₹1 Cr	₹2 Cr	-₹34 Cr	—

🟢 Revenue has grown at 56.6% a year over 3 years.

🟢 EBITDA has grown at 47.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 49.5% to 41.2% over 3 years (-8.3 pts).

🟢 PAT (Net Profit) has grown at 59.9% a year over 3 years.

🟢 EPS has grown at 17.5% a year over 3 years.

🟡 ROE has held roughly flat at 4.2% over 3 years.

🟢 ROCE has risen from 3.9% to 6.0% over 3 years (+2.1 pts).

🔴 Free Cash Flow has turned negative, from ₹6 Cr to -₹34 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹232 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹28 Cr

Operating Cash Flow

-₹34 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.8%

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

1 mixed5 general

Tilak Ventures (TILAK) Share Price rises 9.09% to Rs 1.32 as market cap stands at Rs 165.8 crore

Univest, 08 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Tilak Ventures board to meet Oct 27 to approve scheme of arrangement

scanx.trade, 16 Oct

Tilak Ventures Ltd Valuation Shifts to Very Attractive Amidst Challenging Market Returns

MarketsMojo, 16 Oct

Tilak Ventures - 9 penny stocks crash up to 65% in 3 months. Are you affected?

The Economic Times, 01 Mar

Tilak Ventures Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Tilak Ventures acquires 100% stake in Tilak Jewels for ₹1 per share

scanx.trade, 24 Sept

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

🟢Business QualityStrong15.9/20

🟢Financial HealthStrong17/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate8.9/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4/10

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.

This thesis breaks if

✓Revenue growth stays above 42% a year56.6% CAGR
✓EBITDA margin holds above 39%41.2%
✗Return on equity stays above 8%5.2%
✓Valuation vs its own median of 45.3x11.8x today