Vani Commercials Limited

Financial Services — Credit Services · BSE

₹7.48−₹1.51 (−16.80%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

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, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Vani Commercials Limited, a non-banking finance company, provides financial services in India.

IndustryCredit Services

SectorFinancial Services

Employees14

Annual revenue₹6 Cr

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 14 employees supports ₹40.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹40.7 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%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Profit fell 47.1% in the latest year
• Not enough data to assess growth.

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

47/ 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

187.0x

2Y Median

545.5x

28 monthly readings · mean 472.1x · range 62.3x–716.5x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 66% below its 2y median of 545.5x. 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 1000% above the peer median of 17.0x.

vs. its own history

Cheap

545.5x median over 28 months · -66%

vs. sector peers

Expensive

17.0x median of 4 peers · +1000%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

48.9x

PEG

—

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 150% 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 66% 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.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 1000% above the peer median. That premium needs a reason that persists, or it closes.
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 13%✓ 15.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 1.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 545.5x✓ 187.0x 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

3 good · 2 neutral · 6 weak

Market Cap

₹22 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

187.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.63x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.04

Profitable

Profitable on a per-share basis

ROE

1.0%

Weak

Weak capital efficiency

ROCE

1.2%

Weak

Low return on total capital employed

Debt/Equity

0.58x

Low

Conservative leverage

Revenue Growth (YoY)

-25.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-47.1%

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

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

19.2%

Good

Healthy core-business profitability

Net Margin

10.5%

Good

Strong bottom-line conversion

Current Ratio

157.46

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.19

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

8.3 / 8.2

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	—	₹3 Cr	₹3 Cr	₹6 Cr	—
EBITDA	—	₹1 Cr	₹1 Cr	₹1 Cr	—
EBITDA Margin	—	19.1%	18.3%	15.1%	—
PAT (Net Profit)	—	₹0 Cr	₹0 Cr	₹0 Cr	—
EPS	—	₹0.02	₹0.02	₹0.12	—
ROE	—	1.8%	1.9%	1.0%	—
ROCE	—	1.1%	1.1%	1.2%	—
Total Debt	₹9 Cr	₹40 Cr	₹31 Cr	₹21 Cr	+30.2%
Free Cash Flow	-₹2 Cr	-₹32 Cr	₹11 Cr	-₹12 Cr	—

🔴 EBITDA Margin has fallen from 19.1% to 15.1% over 3 years (-4.0 pts).

🟡 ROE has held roughly flat at 1.0% over 3 years.

🟡 ROCE has held roughly flat at 1.2% over 3 years.

🔴 Total Debt has grown at 30.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹59 Cr

Total Liabilities

₹23 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹12 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.3%

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

2 positive4 general

Vani Commercials FY26 Net Profit Rises 38% to ₹36 Lakh

scanx.trade, 22 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Compare with

Equitymaster, 26 Sept

Financial Services Stocks Today: Live Prices

Alice Blue, 16 Oct

Standard Capital Markets Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Anmol India standalone net profit rises 4.90% in the June 2026 quarter

Business Standard, 10 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Vani Commercials publishes 39th AGM notice in newspapers

scanx.trade, 27 Aug

Watch Items

Revenue growth is negative (-25.7%) 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

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

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.

1 of 3 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑