Upsurge Investment & Finance Limited

Financial Services — Capital Markets · BSE

₹55.57−₹1.29 (−2.27%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

NEUTRAL

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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Upsurge Investment & Finance Limited operates as a non-banking finance company that provides financial services in India.

IndustryCapital Markets

SectorFinancial Services

Employees5

Annual revenue₹60 Cr

How does it make money?

Turns over ₹60 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹11.94 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹11.94 Cr

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 +89% while net margin moved +240% 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+89%

Margin effect+240%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.33 — 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

74/ 100

Good

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

Valuation

77/ 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

10.6x

3Y Median

19.9x

40 monthly readings · mean 56.7x · range 7.7x–288.9x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 47% below its 3y median of 19.9x. 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 82% below the peer median of 58.4x.

vs. its own history

Cheap

19.9x median over 40 months · -47%

vs. sector peers

Cheap

58.4x median of 3 peers · -82%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

28.0x

PEG

0.12

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 3.4% to 7.2% over 3 years.
Return on capital is rising
ROCE has improved from 2.6% to 5.1%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Inventory building faster than sales
Inventory is up 165% against revenue growth of 89% — stock may not be moving.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 45% 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 3.4% to 7.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 47% 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 82% 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?

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 18% a year✓ 23.6% CAGR
Latest reported year was 42.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 2.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 4x✓ 6.2x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 19.9x✓ 10.6x 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

5 good · 2 neutral · 4 weak

Market Cap

₹122 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.6x

Cheap

Cheap against the generic band

P/B Ratio

1.04x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.25

Profitable

Profitable on a per-share basis

ROE

2.8%

Weak

Weak capital efficiency

ROCE

5.1%

Weak

Low return on total capital employed

Debt/Equity

3.93x

High

High leverage

Revenue Growth (YoY)

42.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

122.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.90%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹28 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

59.8%

Good

Healthy core-business profitability

Net Margin

17.7%

Good

Strong bottom-line conversion

Current Ratio

14.68

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

59.7 / 65.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹32 Cr	₹54 Cr	₹105 Cr	₹60 Cr	+23.6%
EBITDA	₹1 Cr	₹13 Cr	₹20 Cr	₹4 Cr	+59.1%
EBITDA Margin	3.4%	24.8%	19.0%	7.2%	—
PAT (Net Profit)	₹1 Cr	₹11 Cr	₹16 Cr	₹3 Cr	+85.8%
EPS	₹0.33	₹7.43	₹7.45	₹1.47	+64.5%
ROE	1.4%	23.6%	15.2%	2.8%	—
ROCE	2.6%	26.2%	19.2%	5.1%	—
Total Debt	₹2 Cr	₹3 Cr	₹0 Cr	₹5 Cr	+26.4%
Free Cash Flow	₹10 Cr	-₹9 Cr	-₹27 Cr	-₹28 Cr	—

🟢 Revenue has grown at 23.6% a year over 3 years.

🟢 EBITDA has grown at 59.1% a year over 3 years.

🟢 EBITDA Margin has risen from 3.4% to 7.2% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 85.8% a year over 3 years.

🟢 EPS has grown at 64.5% a year over 3 years.

🟢 ROE has risen from 1.4% to 2.8% over 3 years (+1.4 pts).

🟢 ROCE has risen from 2.6% to 5.1% over 3 years (+2.5 pts).

🔴 Total Debt has grown at 26.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹10 Cr to -₹28 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹123 Cr

Total Liabilities

₹6 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

-₹15 Cr

Capex

-₹13 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.7%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

21 Aug 2026

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 positive2 mixed3 general

Upsurge Investment & Finance Ltd Forms Death Cross, Signalling Bearish Trend

MarketsMojo, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Upsurge Investment & Finance Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 03 Sept

Upsurge Investment declares ₹0.50 interim dividend for FY26

scanx.trade, 30 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Mysore Petro Chemicals reports consolidated net profit of Rs 9.56 crore in the June 2026 quarter

Business Standard, 10 AugResults

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

These Could Be The Next Big Opportunities In The Stock Market | Ft. Rajat Chandak Hampshire County Council (MAQIecro8M)

Unisba Media, 14 Oct

Stocks to Watch Today: Amagi Media Labs, Manipal Health, Saatvik Green Energy, RailTel Corp, Kfin...

Moneycontrol.com, 21 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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 · Growth · Valuation

MiddlingBusiness Quality · Profitability

WeakRisk

Points for each in the Score ↑

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 of 5 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑