🪙 At a Glance
Morgan Ventures is a small-cap NBFC that’s pulling ₹45 Cr in revenue and ₹26 Cr in profit with a P/E of just 4.3x and ROE over 32%. It’s like finding a ₹5 vada pav that tastes like a ₹500 gourmet burger—cheap, hot, and suspiciously good. But is it just a balance sheet illusion?
1. 🧳 WTF Do They Even Do?
Morgan Ventures isn’t your average loan-disbursing NBFC. Instead, they run a boutique finance-cum-advisory shop with:
- 📈 Treasury operations (aka fancy bond/stock investing)
- 🧾 Corporate advisory (M&A, takeovers, capital raising, etc.)
- 💸 Managing public issues (more like one-public-issue-every-decade vibes)
- 🏦 NBFC lending (but not core focus)
- 👔 Fund-based + non-fund-based financial structuring
Basically: think of them as “wannabe merchant bankers + treasury traders + NBFC” — all under one modest ₹100 Cr cap.
2. 📊 Financials – Is This Even Real?
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Sales (₹ Cr) | 17 | 12 | 23 | 45 |
| Net Profit (₹ Cr) | 8 | 7 | 10 | 26 |
| OPM (%) | 91% | 81% | 98% | 97% |
| ROE (%) | 22% | 15% | 18% | 32% |
🔄 TTM Profit Growth = 146%
🚀 5-Year Profit CAGR = 201%
📈 3-Year Stock CAGR = 69%
🎯 Margin of 97%? Either they’re selling dreams, or trading derivatives like Warren Buffett on Red Bull.
3. 💰 Valuation – Is It Cheap or a Trap?
| Metric | Value |
|---|---|
| Stock Price | ₹108 |
| Book Value | ₹90.2 |
| P/B Ratio | 1.20x |
| P/E Ratio | 4.37x |
| Market Cap | ₹107 Cr |
| ROE (TTM) | 32.0% |
✅ Trading at just 1.2x book and 4.3x earnings
🧠 Compared to NBFC peers with 15-35 P/Es — this looks like a fire sale.
🧮 Fair Value Range (Based on 10–15x PE and 2–2.5x P/B):
- P/E Basis: ₹26 Cr profit × 10–15 = ₹260–₹390 Cr Market Cap ⇒ ₹260–₹390/share
- P/B Basis: ₹90.2 BV × 2–2.5 = ₹180–₹225/share
📌 Fair Value Range = ₹180 to ₹390
👉 Current Price = ₹108 = Deep Value Territory
4. 🧾 P&L Deep-Dive – Revenue or Rerating?
- Most quarters have crazy 98%+ OPM — usually only seen when trading financial assets, not lending.
- Core business seems driven by treasury gains, not traditional lending.
- Latest quarter (Mar ’25): ₹12.4 Cr revenue, ₹12.1 Cr operating profit, ₹6.7 Cr net profit.
⚠️ Revenue volatility is very high — from ₹5 Cr to ₹14 Cr in 1 quarter.
5. 🧻 Balance Sheet – Conservative or Hiding?
| Item | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Borrowings (₹ Cr) | 108 | 156 | 156 | 171 |
| Investments (₹ Cr) | 139 | 197 | 210 | 255 |
| Reserves (₹ Cr) | 37 | 44 | 54 | 79 |
| Fixed Assets (₹ Cr) | 0 | 0 | 0 | 20 |
👀 90%+ of assets are financial investments. So it’s a quasi mutual fund with an NBFC license.
6. 🩸 Cash Flow – Profits Are There, Cash Is… Meh
| Year | CFO (₹ Cr) | FCF Red Flag |
|---|---|---|
| FY22 | -2 | ❌ |
| FY23 | -2 | ❌ |
| FY24 | +1 | Meh |
| FY25 | -2 | ❌ |
💡 Why is this important? Because treasury profit ≠ cash flow.
If your “income” is from MTM gains on securities, cash can be deceptive.
7. 🔁 Ratios – Surprisingly Sexy
| Ratio | Value |
|---|---|
| ROCE | 18.3% |
| ROE | 32.0% |
| Debt/Equity | ~2.1x |
| OPM | 97% |
| Dividend | 0% |
🧨 Dividend = 0%, which is fine if they’re reinvesting. But after 10 years of profits… not even ₹1?
8. 👨👩👧 Shareholding – Strong & Sticky
| Shareholder | Holding |
|---|---|
| Promoters | 74.8% |
| Public | 25.2% |
| FIIs/DIIs | 0% |
✅ Promoter stake stable for 12+ quarters
✅ No dilution
✅ Public float is minimal, which means low liquidity → sudden spikes possible
🧨 Red Flags?
- 🚨 Treasury-oriented NBFC = Market-linked risk
- 🤷♂️ No clear lending disclosure – is it even a lender or just a SEBI-less hedge fund?
- 🔎 FY25 revenue jump may be from one-time gains
- 📉 Negative operating cash flow despite profits
- 🕵️♂️ Auditor info & detailed financial notes needed to fully validate
🧾 EduInvesting Verdict™
Morgan Ventures = Hidden Gem or Hidden Risk?
✅ ROE = 32%, P/E = 4.3
✅ Growing profit, consistent promoter stake
✅ Deep value zone: Trading 40% below fair value
⚠️ Unclear income model = risk of sudden derating
📌 If you’re okay owning a balance sheet-heavy finance stock where “profit” may mean “paper gain” — this could be a multibagger bet.
Fair Value Range: ₹180 – ₹390
Current Price: ₹108 = 🚨 Undervalued (with Risk Caps Lock On)
✍️ Written by Prashant | 📅 27 June 2025
Tags: Morgan Ventures, Deep Value Stocks, Treasury NBFC, Smallcap Multibagger, EduInvesting
