Utique Enterprises Limited

Financial Services — Capital Markets · BSE

₹3.77+₹0.03 (+0.80%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again is 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 Utique Enterprises Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Utique Enterprises Limited engages in the commodity trading activities. It trades in precious metals, such as gold and silver; as well as deals in commodity markets.

IndustryCapital Markets

SectorFinancial Services

Employees5

Annual revenue₹53 Cr

How does it make money?

Turns over ₹53 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹-2 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹10.60 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin-2.0%

Net margin3.6%

Revenue / employee₹10.60 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.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

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.

ROCE3.9%

ROE2.6%

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 -12% while net margin moved +248% 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-12%

Margin effect+248%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.6% is weak

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

88/ 100

Cheap

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

7.0x

3Y Median

62.8x

40 monthly readings · mean 72.5x · range 11.1x–158.4x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 89% below its 3y median of 62.8x. 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 88% below the peer median of 58.4x.

vs. its own history

Cheap

62.8x median over 40 months · -89%

vs. sector peers

Cheap

58.4x median of 3 peers · -88%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.0x

P/B

0.29x

EV/EBITDA

—

PEG

0.16

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Return on capital is rising
ROCE has improved from 1.4% to 3.9%.
Valuation below its historical average
At 7.0x the stock trades 89% below its own median of 62.8x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 0.0% to -2.0% over 3 years.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 2.1 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 89% 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 88% 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 0.0% to -2.0%. 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

1EBITDA margin holds above -4%✓ -2.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 2.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 62.8x✓ 7.0x 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 · 3 neutral · 3 weak

Market Cap

₹20 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.0x

Cheap

Cheap against the generic band

P/B Ratio

0.29x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.54

Profitable

Profitable on a per-share basis

ROE

2.6%

Weak

Weak capital efficiency

ROCE

3.9%

Weak

Low return on total capital employed

Debt/Equity

1.41x

Moderate

Moderate leverage

Revenue Growth (YoY)

-72.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

90.9%

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

₹19 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹3.77

Operating Margin

-9.7%

Weak

Thin margins leave little room for error

Net Margin

6.7%

Average

Average bottom-line conversion

Current Ratio

69.47

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.60

Defensive

Steadier than the market

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3.8 / 3.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹61 Cr	₹68 Cr	₹102 Cr	₹53 Cr	-4.3%
EBITDA	₹0 Cr	₹1 Cr	₹2 Cr	-₹1 Cr	—
EBITDA Margin	0.0%	1.7%	2.4%	-2.0%	—
PAT (Net Profit)	₹1 Cr	₹0 Cr	₹0 Cr	₹2 Cr	+45.0%
EPS	₹0.11	₹0.05	₹0.09	₹0.34	+45.7%
ROE	0.9%	0.4%	0.7%	2.6%	—
ROCE	1.4%	1.7%	4.4%	3.9%	—
Total Debt	₹0 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+26.6%
Free Cash Flow	₹20 Cr	-₹2 Cr	-₹2 Cr	₹19 Cr	-2.0%

🔴 Revenue has shrunk at 4.3% a year over 3 years.

🔴 EBITDA has turned negative, from ₹0 Cr to -₹1 Cr.

🔴 EBITDA Margin has fallen from 0.0% to -2.0% over 3 years (-2.1 pts).

🟢 PAT (Net Profit) has grown at 45.0% a year over 3 years.

🟢 EPS has grown at 45.7% a year over 3 years.

🟢 ROE has risen from 0.9% to 2.6% over 3 years (+1.7 pts).

🟢 ROCE has risen from 1.4% to 3.9% over 3 years (+2.5 pts).

🔴 Total Debt has grown at 26.6% a year over 3 years.

🔴 Free Cash Flow has shrunk at 2.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹74 Cr

Total Liabilities

₹2 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹19 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

36.1%

Corporate Actions

Ex-Dividend Date

31 May 1999

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 negative5 general

Utique Enterprises Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

Utique Enterprises Ltd Downgraded to Strong Sell Amid Weak Financials and Bearish Technicals

MarketsMojo, 08 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Utique Enterprises Ltd

Equitypandit, 04 Apr

Utique Enterprises schedules 40th AGM for Sep 23; votes on director reappointment

scanx.trade, 24 Sept

Utique Enterprises re-appoints Sarma as Whole-Time Director for 5 years

scanx.trade, 23 Sept

Utique Enterprises Ltd Share Price

Business Today, 31 Jan

Watch Items

Revenue growth is negative (-72.3%) on the latest reported period — check if this is one-off or a trend.
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 QualityWeak8.5/20

🟢Financial HealthStrong17/20

🟡GrowthModest9.5/20

🔴ProfitabilityWeak6.2/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓EBITDA margin holds above -4%-2.0%
✗Return on equity stays above 8%2.6%
✓Valuation vs its own median of 62.8x7.0x today