Visagar Financial Services Limited

Financial Services — Capital Markets · BSE

₹0.27−₹0.01 (−3.57%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by short-term liabilities exceed short-term assets, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Short-term liquidity 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 Visagar Financial Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Visagar Financial Services Limited operates as a non-banking financial company in India.

IndustryCapital Markets

SectorFinancial Services

Annual revenue₹10 Cr

How does it make money?

Turns over ₹10 Cr a year. Of every ₹100 of sales, about ₹-4 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation.

EBITDA margin27.6%

Net margin-3.6%

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.

ROCE1.7%

ROE-0.6%

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 -81% while net margin moved -247% 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-81%

Margin effect-247%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 42.3% a year
✗ Latest-year revenue growth of -56.0% is below the longer-term trend — momentum is fading
✗ Profit fell 123.6% in the latest year

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

52/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

0.22x

EV/EBITDA

16.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 3.5% to 27.6% over 3 years.

🔴 What Needs Attention2

Receivables growing faster than sales
Receivables are up 1456% against revenue growth of -81% — customers are taking longer to pay.
Short-term liquidity is tight
Current ratio of 0.22 — near-term obligations exceed near-term assets.

Red Flags

2 items require attention · 2 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.7x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.5% to 27.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 26%✓ 27.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ -0.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ 0.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 10 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 buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 3 neutral · 5 weak

Market Cap

₹16 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

0.22x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.6%

Weak

Weak capital efficiency

ROCE

1.7%

Weak

Low return on total capital employed

Debt/Equity

0.51x

Low

Conservative leverage

Revenue Growth (YoY)

-56.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-123.6%

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

₹13 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹0.27

Operating Margin

-5.2%

Weak

Thin margins leave little room for error

Net Margin

7.5%

Average

Average bottom-line conversion

Current Ratio

0.22

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.54

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.3 / 0.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹52 Cr	₹334 Cr	₹130 Cr	₹10 Cr	-42.3%
EBITDA	₹2 Cr	₹0 Cr	₹2 Cr	₹3 Cr	+14.8%
EBITDA Margin	3.5%	0.1%	1.8%	27.6%	—
PAT (Net Profit)	₹1 Cr	-₹1 Cr	-₹0 Cr	-₹0 Cr	—
EPS	₹0.02	₹-0.02	—	₹-0.01	—
ROE	2.1%	-1.9%	-0.3%	-0.6%	—
ROCE	2.9%	-1.9%	2.8%	1.7%	—
Total Debt	₹15 Cr	₹42 Cr	₹44 Cr	₹31 Cr	+27.2%
Free Cash Flow	-₹61 Cr	-₹26 Cr	₹0 Cr	₹13 Cr	—

🔴 Revenue has shrunk at 42.3% a year over 3 years.

🟢 EBITDA has grown at 14.8% a year over 3 years.

🟢 EBITDA Margin has risen from 3.5% to 27.6% over 3 years (+24.1 pts).

🔴 PAT (Net Profit) has turned negative, from ₹1 Cr to -₹0 Cr.

🔴 EPS has turned negative, from ₹0.02 to ₹-0.01.

🔴 ROE has fallen from 2.1% to -0.6% over 3 years (-2.7 pts).

🔴 ROCE has fallen from 2.9% to 1.7% over 3 years (-1.2 pts).

🔴 Total Debt has grown at 27.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹61 Cr to ₹13 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹91 Cr

Total Liabilities

₹31 Cr

Total Debt

₹31 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹13 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

6.0%

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

2 mixed4 general

Visagar Financial Services appoints CA Riddhi Trivedi as statutory auditor

scanx.trade, 16 Oct

Visagar Financial Services reports standalone net loss of Rs 0.06 crore in the June 2026 quarter

Business Standard, 14 AugResults

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

12 penny stocks surge up to 125% in just 2 months; 2 turn multibaggers. Did you own any?

The Economic Times, 24 May

Maharashtra Corporation Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Visagar Financial Services (BSE:531025) Stock Forecast & Analyst Predictions

Simply Wall Street, 15 NovAnalyst view

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

Visagar Financial Services Ltd

Equitypandit, 06 Nov

Watch Items

Revenue growth is negative (-56.0%) on the latest reported period — check if this is one-off or a trend.
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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟡Business QualityAdequate12.2/20

🟢Financial HealthStrong17/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak5/15

🟢ValuationAttractive12.8/15

🔴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. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 26%27.6%
✗Return on equity stays above 8%-0.6%
✗Interest cover stays above 3x0.7x