1. At a Glance – This Is Not Your Regular NBFC Story
Market Cap: ₹132 Cr
Current Price: ₹93
P/E: 11.4
Price to Book: 0.29x
ROE: 71.2%
ROCE: 72%
3-Month Return: 1.52%
Let me say this clearly: this is a finance company that is not doing finance anymore.
Yes, you read that right.
Maha Rashtra Apex Corporation Ltd (MRACL), incorporated in 1943, was once a Non-Systematically Important Non-Deposit NBFC. Today? It is engaged primarily in recovering old assets and repaying liabilities under a court-approved Scheme of Arrangement.
And yet… it posted Q3 FY26 numbers of:
- Sales: ₹1.97 Cr
- PAT: ₹4.91 Cr
- OPM: 71.57%
- EPS: ₹3.47
A recovery company making more profit than revenue.
Welcome to Indian capital markets.
Add to that:
- Debt: ₹0
- Borrowings: Nil
- Trading at just 0.29x book value
- Earnings yield: 11.1%
Is this a liquidation play? A rights issue drama? A value trap wearing ROE makeup?
Let’s open the forensic file.
2. Introduction – The NBFC That Retired But Still Shows Up For Earnings
MRACL is like that retired uncle who stopped working in 2010 but still files income tax returns with impressive “other income”.
The company clearly states:
- It is no longer carrying NBFC activities.
- It is under a Scheme of Arrangement approved by the High Court of Karnataka.
- It is engaged in recovery of assets and repayment of liabilities.
So what is the real business?
Recovery. Settlement. Interest remission. Dividend income. House property income.
In FY23 revenue mix:
- Interest remission from bonds/deposits: 59%
- Supervision charges: 22%
- Dividend income: 7%
- Bank interest: 6%
- House property: 3%
This is not lending.
This is accounting alchemy.
And yet, it trades at ₹132 Cr market cap with 71% ROE.
Question for you:
Are we looking at a turnaround story… or a balance sheet time capsule?
3. Business Model – WTF Do They Even Do?
Let’s simplify this for lazy but intelligent investors.
Earlier:
- Leasing financing
- Hire purchase
- Bill discounting
- Loans
Now:
- Recover old money
- Manage liabilities
- Collect deposits
- Earn investment income
That’s it.
They even issued a public notice in FY19 asking deposit holders to surrender certificates and collect final dues.
