1. At a Glance
A microcap NBFC that lent Rs. 6.71 Cr last quarter and still made it to BSE headlines. With zero NPAs, 47% profit CAGR, and FII interest kicking in—Emerald Finance is either a hidden gem or a hyped crystal ball.
2. Introduction with Hook
Imagine a Maruti 800 overtaking Lamborghinis in a rally. That’s Emerald Finance for you—tiny, persistent, and now… catching serious speed.
- Q1 FY26 Net Profit: ₹3.19 Cr — up 138% YoY
- Last 3Y profit CAGR: 53%
- TTM OPM: 71%
- Shareholders in 2022: 1,707 → in 2025: 9,883
Welcome to India’s most scalable 6-crore quarterly revenue story.
3. Business Model (WTF Do They Even Do?)
| Segment | Activity |
|---|---|
| NBFC (Non-Deposit Taking) | Retail loans, MSME credit, and business lending |
| Loan Origination (via Subsidiary) | Eclat Net Advisors connects borrowers with 40+ institutions incl. SBI, Axis, etc. |
| Revenue Streams | Commission income, interest, dividends |
USP:
No NPAs reported in 9M FY25. You read that right. ZERO.
4. Financials Overview
Revenue & Profit (Consolidated)
| Year | Sales (Cr) | Net Profit (Cr) | EPS (₹) | OPM % |
|---|---|---|---|---|
| FY21 | ₹5 | ₹1 | ₹0.48 | 44% |
| FY22 | ₹8 | ₹2 | ₹0.85 | 47% |
| FY23 | ₹12 | ₹3 | ₹1.15 | 49% |
| FY24 | ₹13 | ₹4 | ₹1.37 | 53% |
| FY25 | ₹22 | ₹9 | ₹2.57 | 70% |
| TTM | ₹24 | ₹10 | ₹3.05 | 71% |
TTM Net Margin: A bonkers 42%.
Mic Drop Moment: ₹24 Cr in revenue with ₹10 Cr profit.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹94.3 |
| EPS (TTM) | ₹3.05 |
| P/E | 31.4x |
| Book Value | ₹24.5 |
| Price/Book | 3.85x |
| ROE | 13.5% |
| ROCE | 18.3% |
Fair Value Range:
- Based on Peer Multiples: ₹75 – ₹110
- DCF Method (scaled conservatively): ₹65 – ₹105
- EduInvesting FV Range™: ₹70 – ₹100
Stock’s already in upper band. The next leg up needs either mega scaling or meme stock vibes.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 PAT up 138% YoY – That’s not a typo.
- FII stake surged to 9.36% from zilch in a year. Clearly, somebody sees something.
- Promoter stake dropped from 67.8% to 59.5%. Hmm.
- Earnings call scheduled on July 15 – eyes on forward guidance.
Big Trigger Possibility: Tech-led loan origination boom, backed by large banks and zero NPAs (for now).
7. Balance Sheet
| Year | Equity (Cr) | Reserves (Cr) | Borrowings (Cr) | Total Assets (Cr) |
|---|---|---|---|---|
| FY20 | ₹9 | ₹6 | ₹3 | ₹20 |
| FY23 | ₹30 | ₹13 | ₹5 | ₹52 |
| FY25 | ₹35 | ₹50 | ₹16 | ₹106 |
- Reserves up nearly 8x in 5 years.
- Leverage still low — NBFC with discipline?
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Flow (₹ Cr) |
|---|---|---|---|---|
| FY23 | ₹2 | ₹-0 | ₹3 | ₹5 |
| FY24 | ₹-11 | ₹-0 | ₹8 | ₹-4 |
| FY25 | ₹-13 | ₹-0 | ₹28 | ₹15 |
- Burn from operations last two years
- Saved by financing activities (read: capital raise)
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE (%) | 13.5 |
| ROCE (%) | 18.3 |
| Debt/Equity | 0.46 |
| P/E | 31.4 |
| Book Value | ₹24.5 |
| Debtor Days | 36 |
| Working Cap Days | 1410 |
Verdict: Return ratios fine, but Working Capital is doing yoga in the Himalayas. 1,410 days = Houston, we have a liquidity issue.
10. P&L Breakdown – Show Me the Money
| Metric | FY25 |
|---|---|
| Revenue | ₹22 Cr |
| Operating Profit | ₹15 Cr |
| OPM % | 70% |
| Net Profit | ₹9 Cr |
| EPS | ₹2.57 |
11. Peer Comparison
| Company | P/E | ROE % | Market Cap (Cr) | OPM % | CMP/BV |
|---|---|---|---|---|---|
| Bajaj Finance | 34.8 | 19.2 | ₹5.8 L Cr | 68.8 | 6.0 |
| Muthoot Finance | 19.8 | 19.6 | ₹1.06 L Cr | 72.6 | 3.6 |
| Shriram Finance | 15.3 | 15.6 | ₹1.25 L Cr | 72.0 | 2.2 |
| Emerald Finance | 31.4 | 13.5 | ₹326 Cr | 71.0 | 3.85 |
Conclusion: Emerald has big-boy OPMs in a microcap body. Valuation’s already spicy. ROE could use a protein shake.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 |
|---|---|
| Promoter | 59.5% |
| FIIs | 9.36% |
| Public | 31.14% |
| Shareholders | 9,883 |
- FII love has arrived
- Promoter stake falling — for funding growth or exiting slowly?
13. EduInvesting Verdict™
Emerald Finance is either a genius fintech-enabled NBFC that scaled smartly—or a hot potato fueled by low float and retail frenzy.
What works:
- 138% profit growth
- Top-tier margins
- FII buzz
What’s risky:
- Working capital days: 1410
- Small base, high valuation
- Promoter stake dilution
It’s a perfect NBFC side character—small role, big impact. Just make sure you’re not buying the credits roll scene.
Metadata
– Written by EduInvesting Research | 12 July 2025
– Tags: Emerald Finance, Microcap NBFC, High Margin Stocks, Eclat Net, MSME Lending, FII Stake
