1. At a Glance – Blink and You’ll Miss the Profits
Nexome Capital Markets Ltd (formerly known in filings as SMIFS Capital Markets) is that classic Dalal Street character who owns a mansion (₹265 book value), rents out one dusty room (₹1.12 Cr quarterly revenue), and then complains about cash flow. With a market cap of ₹48.5 Cr, CMP ₹82.6, and a price-to-book of just 0.31, the stock looks like a deep-value buffet… until you taste the food.
Latest quarter Q3 FY26 (Dec 2025) delivered revenue of ₹1.12 Cr, down a brutal 84.8% YoY, and PAT of –₹1.00 Cr (yes, negative, with confidence). ROE is chilling at 0.69%, ROCE at 1.24%, and the stock still trades at a P/E of ~30x because earnings are basically playing hide-and-seek.
Returns? –33% in 3 months, –23% in 6 months, –15% in 1 year. Promoters? Holding 45.62%, but reduced stake by –6.53% recently. Debt is low (₹6.82 Cr, D/E 0.04), current ratio comfy (2.74).
So what do we have here? A merchant banker with a banker’s balance sheet and a meme-stock P&L. Curious? You should be.
2. Introduction – Merchant Banking, Minus the Merchanting
Incorporated in 2000, Nexome Capital Markets is a SEBI-registered Category I Merchant Banker. On paper, this is the Ivy League of Indian capital markets licenses. In reality, the company’s revenue engine runs more like a second-hand scooter with a Ferrari RC book.
The firm dabbles in merchant banking, underwriting, advisory, G-Sec trading, IPO marketing, M&A advisory, loan syndication, and project finance. Basically, if a finance buzzword exists, Nexome has probably put it in a PowerPoint at some point.
But here’s the plot twist: despite two decades in capital markets, FY25 sales were just ₹43.46 Cr, and
TTM sales have fallen to ₹36.0 Cr. Profits exist, but only when other income decides to show mercy. Core operating margins hover around 2%, which is… not exactly merchant-banking royalty.
And Q3 FY26? A clean loss. So the question every investor must ask:
Is this a temporarily sick merchant banker, or a structurally sleepy one?
3. Business Model – WTF Do They Even Do?
Let’s explain Nexome’s business like you’re smart, busy, and allergic to jargon.
Nexome primarily earns money from:
- Trading in shares, securities, and government bonds
- Merchant banking assignments (IPOs, rights issues, preferential allotments)
- Advisory fees (M&A, takeovers, open offers, buybacks)
- Underwriting and placement commissions
Historically, ~92% of FY22 revenue came from sale of shares & securities, while investment banking contributed just ~1%. Translation: this is less “Goldman Sachs” and more “market-linked treasury desk with visiting MBA interns.”
Clients include known names like Mukta Arts, India Cements, Hindustan Sanitaryware, MTR Foods—which sounds impressive until you ask how frequently these mandates convert into fat fees.
The business is:
- Low asset intensity
- High reputation dependence
- Extremely cyclical
- Brutally competitive
So when markets slow down or deals dry up, Nexome’s revenues don’t dip — they vanish.
4. Financials Overview –
