Wallfort Financial Services Ltd.

Financial Services — Capital Markets · BSE

₹75.50−₹1.33 (−1.73%)

DalalBaazaar Score

53 / 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, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 Wallfort Financial Services Ltd. — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Wallfort Financial Services Ltd. acts as a stockbroker to execute proprietary trades and trades on behalf of its clients, including retail customers, mutual funds, and corporate clients in India.

IndustryCapital Markets

SectorFinancial Services

Employees65

Annual revenue₹12 Cr

How does it make money?

Turns over ₹12 Cr a year. Of every ₹100 of sales, about ₹-25 reaches shareholders as profit, with ₹-37 left at the operating level before interest, tax and depreciation. Each of its 65 employees supports ₹18.4 lakh of revenue a year, the signature of a people-led business.

EBITDA margin-36.8%

Net margin-25.1%

Revenue / employee₹18.4 lakh

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.

ROCE-2.3%

ROE-1.9%

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 +5% while net margin moved -157% 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+5%

Margin effect-157%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.5% — barely ahead of inflation

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

55/ 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

36.8x

3Y Median

6.7x

40 monthly readings · mean 10.1x · range 3.2x–25.6x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 452% above its 3y median of 6.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 37% below the peer median of 58.4x.

vs. its own history

Expensive

6.7x median over 40 months · +452%

vs. sector peers

Cheap

58.4x median of 3 peers · -37%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

36.8x

P/B

0.46x

EV/EBITDA

—

PEG

1.13

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well0

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

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 0.3% to -36.8% over 3 years.
Return on equity is falling
ROE has dropped from 4.2% to -1.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 5.0% to -2.3% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 29% against revenue growth of 5% — customers are taking longer to pay.
Valuation above its historical average
At 36.8x the stock trades 452% above its own median of 6.7x.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -15.3x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹3 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 37.1 points, from 0.3% to -36.8%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 482.2x to -15.3x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 37% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 0.3% to -36.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 452% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 1.5% 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.
Returns on shareholder capital are falling
ROE has dropped from 4.2% to -1.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.

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

1EBITDA margin holds above -39%✓ -36.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ -1.9%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ -15.3x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 1.5% CAGR
Latest reported year was 29.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Valuation vs its own median of 6.7x✗ 36.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

₹73 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

36.8x

Fair

Fairly valued against the generic band

P/B Ratio

0.46x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.05

Profitable

Profitable on a per-share basis

ROE

-1.9%

Weak

Weak capital efficiency

ROCE

-2.3%

Weak

Low return on total capital employed

Debt/Equity

3.37x

High

High leverage

Revenue Growth (YoY)

29.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

32.7%

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

₹5 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹75.5

Operating Margin

76.1%

Good

Healthy core-business profitability

Net Margin

19.1%

Good

Strong bottom-line conversion

Current Ratio

3.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

31%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

79.8 / 81.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11 Cr	₹16 Cr	₹10 Cr	₹12 Cr	+1.5%
EBITDA	₹0 Cr	₹3 Cr	-₹5 Cr	-₹4 Cr	—
EBITDA Margin	0.3%	17.9%	-49.1%	-36.8%	—
PAT (Net Profit)	₹5 Cr	₹30 Cr	₹12 Cr	-₹3 Cr	—
EPS	₹5.21	₹30.57	₹12.39	₹-3.1	—
ROE	4.2%	19.9%	7.4%	-1.9%	—
ROCE	5.0%	24.0%	9.1%	-2.3%	—
Total Debt	₹2 Cr	—	—	₹5 Cr	+37.4%
Free Cash Flow	-₹2 Cr	-₹21 Cr	-₹11 Cr	₹5 Cr	—

🟡 Revenue has been broadly flat over 3 years (1.5% a year).

🔴 EBITDA has turned negative, from ₹0 Cr to -₹4 Cr.

🔴 EBITDA Margin has fallen from 0.3% to -36.8% over 3 years (-37.1 pts).

🔴 PAT (Net Profit) has turned negative, from ₹5 Cr to -₹3 Cr.

🔴 EPS has turned negative, from ₹5.21 to ₹-3.1.

🔴 ROE has fallen from 4.2% to -1.9% over 3 years (-6.1 pts).

🔴 ROCE has fallen from 5.0% to -2.3% over 3 years (-7.2 pts).

🔴 Total Debt has grown at 37.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹181 Cr

Total Liabilities

₹22 Cr

Total Debt

₹5 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.0%

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

1 mixed5 general

SEBI keeps ₹6 lakh NSE penalty on Wallfort Financial Services in abeyance

scanx.trade, 14 Oct

Sugal Earthen Spaces Ventures (BSE:511654) - Stock Analysis

Simply Wall Street, 25 Jun

NSE withdraws Rs 1.5 lakh penalty levied on Wallfort Financial Services

scanx.trade, 22 Jul

Wallfort Financial Services receives ₹2,25,700 NSE penalty for compliance breach

scanx.trade, 23 Sept

JBM Auto jumps 6% on heavy volume amid Fortum EV deal buzz

Business Standard, 30 Dec

Stock To buy: Top Brokerage Bullish On This Midcap Battery Stock, Sees Robust 44% Upside

Goodreturns, 17 DecAnalyst view

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

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

🟡Business QualityAdequate10.1/20

🟢Financial HealthStrong17/20

🔴GrowthWeak7.6/20

🔴ProfitabilityWeak6.7/15

🟡ValuationFair7.5/15

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

This thesis breaks if

✓EBITDA margin holds above -39%-36.8%
✗Return on equity stays above 8%-1.9%
✗Interest cover stays above 3x-15.3x
✗Revenue growth stays above 4% a year1.5% CAGR
✗Valuation vs its own median of 6.7x36.8x today