1. At a Glance – When NBFC Meets Rollercoaster 🎢
MKVentures Capital Ltd is currently trading at ₹892 with a market cap of ₹343 crore. In the last 3 months alone, the stock has corrected 24.6%. Over one year? Down 37.8%. Yet, it still commands a P/E of 72.6 in an industry where the median is 27.9.
Latest quarterly sales came in at ₹3.56 crore, down 54.7% YoY. PAT for the quarter stands at ₹2.34 crore, down 56.3% YoY. EPS for Q3 FY26 is ₹6.09.
ROCE is 16.6%, ROE 9.56%, debt to equity 0.00 (almost debt-free), and book value is ₹287.
So here’s the puzzle:
- Earnings collapsing
- Revenue shrinking
- Stock correcting
- Valuation still premium
Is this a temporary speed breaker or a business model identity crisis? Let’s investigate.
2. Introduction – From Textile To Financial Engineering
MKVentures was incorporated in 1991. Once upon a time, it was in textiles. Today? It’s an NBFC — specifically a Non-Systemically Important Non-Deposit Taking NBFC.
Translation:
Not big enough to scare RBI.
Not small enough to ignore.
The real plot twist came in FY22 when Madhusudan Kela acquired 83.66% stake through an open offer. That changed everything. Promoter holding today stands at 74.36%.
In FY23:
- Authorised share capital increased from ₹5 crore to ₹25 crore.
- Borrowing limits increased from ₹500 crore to ₹750 crore.
- Entered related party transactions up to ₹1000 crore with Chartered Finance & Leasing Limited.
- Acquired Destination Properties Pvt Ltd.
That’s a lot of financial flexibility for a company whose TTM revenue is ₹18.54 crore.
Does ambition match execution? That’s the real question.
3. Business Model – WTF Do They Even Do?
Let’s simplify this.
MKVentures is basically a lending company.
In FY23:
- Total loan disbursement was ₹305.37 crore.
- 36% were loans repayable on demand.
- 64% were term loans.
Revenue breakup FY23:
- Interest income: 38%
- Other
