At a Glance:
Intec Capital Ltd is a Delhi-based NBFC that lends to SMEs for equipment purchases — think dental chairs, lathe machines, or fancy copiers. While the idea is noble, the execution seems… meh. Revenue has collapsed 98% in 10 years, debt is down (yay), but so is business (oops). It trades below book value, but don’t let that tempt you — its real capital seems to be nostalgia.
📦 1. WTF Do They Even Do?
- Founded in 1994, Intec provides loans for:
- Office & medical equipment
- Industrial machinery
- IT gear, printers, even water coolers if needed
- Customers: SMEs, hospitals, offices, and (probably) your CA friend who still uses Windows XP
- Claims to be “tech-enabled,” but growth metrics suggest it may be more “tech-endangered”
💰 2. Financials – A Game of Vanishing Acts
| Metric | FY2015 | FY2020 | FY2025 |
|---|---|---|---|
| Revenue (₹ Cr) | 130.9 | 14.9 | 3.6 |
| Net Profit (₹ Cr) | 5.4 | -37.4 | 0.2 |
| ROE (%) | 2.9% | -20.3% | 0.6% |
| Debt (₹ Cr) | 519.3 | 85.7 | 41.5 |
| OPM (%) | 61.7% | -276.9% | 53.5% |
📉 Takeaway:
The company has de-grown by nearly 98% in revenue and has barely limped back to profits. The sharp drop in debt looks like a strategic retreat, not a victory.
📊 3. Valuation – Is It Cheap, Meh, or Crack?
- Current Price: ₹15.3
- Book Value: ₹18.8
- P/B: 0.81x (👀 undervalued on paper)
- P/E: 128x (🤣 overvalued on earth)
- Market Cap: ₹28 Cr
🎯 Fair Value Range (based on 0.8–1.2x P/B for turnaround NBFCs):
₹15 – ₹23 (Only if you believe revival is real. Huge “if.”)
🍳 4. What’s Cooking – News, Triggers, Drama
- 📉 Revenue went from ₹150 Cr+ to ₹3 Cr in 10 years
- ⚠️ Contingent liabilities: ₹400 Cr (!)
- 👩💼 Resignation of CS in June 2025 (not a good omen)
- 🔁 Promoters slowly reducing stake — down to 71.09%
- 🧾 Auditor corrections & compliance-related updates hinting at possible back-office sloppiness
🏦 5. Balance Sheet – How Much Debt, How Many Dreams?
- Borrowings reduced from ₹500 Cr+ to just ₹41.5 Cr
- Reserves barely breathing at ₹16 Cr
- No major capex, CWIP or investments visible
- Assets declining every year — from ₹730 Cr to ₹81 Cr (shrinking faster than Indian middle-class savings post-Zomato orders)
💸 6. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF Insight |
|---|---|---|
| FY20 | ₹31.7 | Shrinking loan book = less need for capital |
| FY25 | ₹9.8 | Flat, but stable. Surprisingly decent |
| Net Flow FY25 | -₹4.5 Cr | Company isn’t burning, but also not earning 🔄 |
📊 7. Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROCE | 2.8% | Sleepy 🛌 |
| ROE | 0.6% | Almost dead 💀 |
| OPM (FY25) | 53.5% | Optical illusion — boosted by other income |
| EPS (TTM) | ₹0.12 | Below par |
| P/E | 128x | 🚨 OVERKILL |
| Debt/Equity | 0.25x | Safe, because no one’s lending to them anymore 😬 |
🪙 8. P&L Breakdown – Show Me the Money
- Sales FY25: ₹3.6 Cr
- Other Income: ₹0.89 Cr (that’s 25% of all “earnings”)
- Net Profit: ₹0.22 Cr
- EPS: ₹0.12
- Zero Dividend Policy since forever (rightfully so)
🤼 9. Peer Comparison – Why It Looks Like a Pygmy
| Name | ROE | P/E | MCap (₹ Cr) |
|---|---|---|---|
| Bajaj Finance | 19.2% | 35x | 5,88,493 |
| Shriram Finance | 15.6% | 16x | 1,31,627 |
| Muthoot Finance | 19.6% | 19x | 1,03,204 |
| Intec Capital | 0.6% | 128x | 28 |
📉 It’s not even the same league. More like comparing India’s GDP with Sri Lanka’s currency reserves.
🧾 10. Misc – Shareholding, Promoters
- Promoter Holding: 71.09% (Down from 74.6% in 2022)
- No institutional holding, zero FIIs/DIIs
- Public is increasing slowly — maybe retail gamblers, maybe bots 🤷♂️
- Shareholders: just under 2,000 brave souls
✅ EduInvesting Verdict™
This NBFC isn’t growing. It’s gracefully retiring.
The debt cut is a rare positive, but falling sales, inconsistent profits, and heavy contingent liabilities kill the story. It’s trading below book because the book itself is getting thinner every year.
Best use case? Educational case study on how not to scale an NBFC.
🎯 Fair Value Range: ₹15 – ₹23 (only if revival hopes are priced in)
Not a recommendation. Just an intervention. 🧠💊
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Intec Capital, NBFC stocks India, SME lending, undervalued stock, penny stock analysis, EduInvesting, financial stock review, BSE smallcaps, turnaround companies
