United Credit Limited

Financial Services — Credit Services · BSE

₹22.39+₹1.89 (+9.22%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

NEUTRAL

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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

United Credit Limited, a non-banking financial company, provides hire purchase, leasing, and other financial services in India. The company operates in two segments, Financing Activity and Renting Activity.

IndustryCredit Services

SectorFinancial Services

Employees7

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹27 reaches shareholders as profit, with ₹38 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹44.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹44.6 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +9% while net margin moved +8% 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+9%

Margin effect+8%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.0% — barely ahead of inflation
✗ Profit CAGR of only 5.8%
✗ Profit fell 23.4% in the latest year

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

60/ 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

14.9x

3Y Median

13.9x

40 monthly readings · mean 13.8x · range 8.9x–23.9x

Sector Median

17.0x

median of 4 sector peers

🟡Currently trading close to its 3y median of 13.9x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 17.0x.

vs. its own history

Fair

13.9x median over 40 months · +7%

vs. sector peers

Fair

17.0x median of 4 peers · -12%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.8x

PEG

2.59

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

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?

Growth barely outpaces inflation
Revenue compounding at 3.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 36%✓ 37.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 2.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 4% a year✗ 3.0% CAGR
Latest reported year was 4.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Valuation vs its own median of 13.9x✓ 14.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹12 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.9x

Cheap

Cheap against the generic band

P/B Ratio

0.38x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.5

Profitable

Profitable on a per-share basis

ROE

2.8%

Weak

Weak capital efficiency

ROCE

3.4%

Weak

Low return on total capital employed

Debt/Equity

0.91x

Moderate

Moderate leverage

Revenue Growth (YoY)

4.7%

Modest

Modest growth

Profit Growth (YoY)

-23.4%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

31.6%

Good

Healthy core-business profitability

Net Margin

25.7%

Good

Strong bottom-line conversion

Current Ratio

190.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.62

Defensive

Steadier than the market

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

22.2 / 23.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3 Cr	₹3 Cr	₹4 Cr	₹3 Cr	+3.0%
EBITDA	₹1 Cr	₹1 Cr	₹2 Cr	₹1 Cr	+3.6%
EBITDA Margin	37.3%	41.5%	49.5%	37.9%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹1 Cr	₹1 Cr	+5.8%
EPS	₹1.36	₹3.07	₹1.9	₹1.61	+5.8%
ROE	2.6%	5.6%	3.4%	2.8%	—
ROCE	3.3%	5.3%	4.9%	3.4%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+30.6%
Free Cash Flow	₹0 Cr	₹0 Cr	-₹1 Cr	-₹1 Cr	—

🟢 Revenue has grown at 3.0% a year over 3 years.

🟢 EBITDA has grown at 3.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 37.9% over 3 years.

🟢 PAT (Net Profit) has grown at 5.8% a year over 3 years.

🟢 EPS has grown at 5.8% a year over 3 years.

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

🟡 ROCE has held roughly flat at 3.4% over 3 years.

🔴 Total Debt has grown at 30.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹32 Cr

Total Liabilities

₹1 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.9%

Corporate Actions

Ex-Dividend Date

19 Sept 2019

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 negative5 general

United Overseas Bank Limited (U11.SI) stock price, news, quote and history

Yahoo Finance Singapore, 17 Oct

United Credit Limited Responds to BSE Surveillance on Share Price Movement

scanx.trade, 09 Apr

United Credit Ltd. Peer Comparison – Compare with Others

Value Research, 04 Sept

United Global Services: What to Know

NerdWallet, 13 Oct

United Credit FY26 Results: Net profit down 15% to ₹85.67 lakh

scanx.trade, 03 SeptResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

United flyers without a credit card earn fewer miles. Here's what's changed

CNBC, 02 Apr

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 · Valuation

MiddlingProfitability

WeakGrowth · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

2 of 4 tripwires tripped — Return on equity stays above 8%; Revenue growth stays above 4% a year · see Key things to watch ↑