1. At a Glance
Tokyo Finance Ltd is a nano-cap NBFC that’s survived two decades by lending money, booking micro profits, and somehow still not paying dividends. With a P/E of 107, it’s either a stealth unicorn or a stealth typo.
2. Introduction with Hook
If Tokyo Finance were a Bollywood character, it’d be that background artist who shows up in every scene but never gets a line. Incorporated in 1994, this Mumbai-based NBFC has mastered the art of staying listed, barely profitable, and perpetually… small.
- Market Cap: ₹18.2 Cr
- Sales (TTM): ₹0.83 Cr
- Net Profit (TTM): ₹0.17 Cr
That’s not a typo—those are actual full-year numbers. We’ve seen larger lunch bills at investor conferences.
3. Business Model (WTF Do They Even Do?)
Tokyo Finance is a registered NBFC, though not a deposit-taking one. Their business model revolves around:
- Lending money to individuals and corporates
- Offering seed, venture, and loan capital
- Investments and financial advisory
It’s less “fintech disruptor” and more “loaning chillar with compliance.” No app. No AI. Just the traditional NBFC hustle, minus scale.
4. Financials Overview
Annual Financials Snapshot (₹ Cr):
| Year | Revenue | Net Profit | EPS (₹) | OPM % | ROE % |
|---|---|---|---|---|---|
| FY23 | 0.70 | 0.12 | 0.17 | 21.43 | 1.38 |
| FY24 | 0.78 | 1.09 | 1.56 | 38.46 | 2.78 |
| FY25 | 0.83 | 0.17 | 0.24 | 20.48 | 2.01 |
The FY24 “profit spike” was thanks to one-time other income of ₹0.83 Cr. Classic NBFC magic trick: vanishing growth, appearing PAT.
5. Valuation
Current Price: ₹26.2
Book Value: ₹16.6
P/E: 107
P/B: 1.58
Fair Value Range: ₹12 – ₹18
This is based on:
- Normalized PAT (₹0.25–0.3 Cr)
- Conservative 30–40x earnings multiple (yes, even that feels generous)
- Adjusted for size, liquidity & illiquidity discount of 40%
Unless Q2 FY26 suddenly shows exponential lending scale-up, it’s mostly speculative froth.
6. What’s Cooking – News, Triggers, Drama
- Jul 2025: Appointed new Secretarial Auditor.
- Q1 FY26: Posted ₹20.59 lakh in revenue with ₹3.24 lakh PBT.
- SEBI Compliance: Revised filings submitted after a clerical error (oops).
- Shareholding: Promoter stake quietly increased to 65.22% from 61%. Hmm…
No big triggers or partnerships. Mostly maintenance mode. Or stealth mode. Or nap mode.
7. Balance Sheet
| Item | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Equity Capital | 6.94 | 6.94 | 6.94 |
| Reserves | 3.30 | 4.41 | 4.61 |
| Borrowings | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 11.14 | 11.57 | 11.86 |
| Total Assets | 11.14 | 11.57 | 11.86 |
Key Points:
- Zero borrowings.
- Entire growth funded through reserves.
- Super lean, but dangerously illiquid.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| FY23 | -1.87 | +0.86 | 0.00 | -1.02 |
| FY24 | -0.43 | +0.30 | 0.00 | -0.12 |
| FY25 | -1.47 | 0.00 | 0.00 | -1.47 |
Observations:
- Every year, Tokyo bleeds cash in operations.
- Reliant on other income and existing cash to survive.
- Not deploying capital for expansion or lending scale.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 1.38% | 2.78% | 2.01% |
| ROCE | 1.38% | 2.78% | 2.01% |
| OPM | 21.4% | 38.4% | 20.5% |
| Debt/Equity | 0.00 | 0.00 | 0.00 |
| P/E | 15.3 | 1.9 | 107.3 |
Verdict:
- Good OPM is misleading—sales are sub-₹1 Cr.
- ROE & ROCE barely beat FDs.
- Valuation looks like someone fat-fingered the buy button.
10. P&L Breakdown – Show Me the Money
| Year | Sales | Expenses | OPM % | Other Income | Net Profit |
|---|---|---|---|---|---|
| FY23 | 0.70 | 0.55 | 21.4% | 0.00 | 0.12 |
| FY24 | 0.78 | 0.48 | 38.4% | 0.83 | 1.09 |
| FY25 | 0.83 | 0.66 | 20.5% | 0.00 | 0.17 |
Even 1 Cr revenue is a dream. Meanwhile, Muthoot Finance earns more in one minute than Tokyo does in one year.
11. Peer Comparison
| Company | M-Cap (Cr) | Sales (Cr) | ROE % | P/E | Net Profit (Cr) |
|---|---|---|---|---|---|
| Bajaj Finance | 5,72,925 | 69,709 | 19.2% | 34.4 | 16,663.9 |
| Muthoot Finance | 1,06,493 | 20,214 | 19.6% | 19.9 | 5,332.9 |
| HDB Financial | 67,609 | 16,300 | 14.7% | 31.1 | 2,175.8 |
| Tokyo Finance | 18.2 | 0.83 | 2.01% | 107 | 0.17 |
Tokyo is… not even in the same solar system. Let’s just say it’s an NBFC in the same way a bicycle is a vehicle.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 65.22% (up from 61%)
- Public: 34.78%
- Shareholders: Increased from 2,470 (Sep ‘24) to 3,002 (Jun ‘25)
A microcap with increasing retail activity = recipe for pump, dump, or delusion.
No major FII/DII presence, obviously.
13. EduInvesting Verdict™
Tokyo Finance is that underdog story that forgot the part where it grows.
- If you like “Penny Dhan Dhana Dhan” narratives, this is one.
- No major lending activity, no tech disruption, no dividend history.
- High P/E, low fundamentals = speculative territory.
It’s less of a finance company and more of a nostalgia listing from the BSE archives.
Metadata
Written by: EduInvesting Research Desk
Date: 16 July 2025
Tags: Tokyo Finance, NBFC, Penny Stocks, Microcap India, EduInvesting Premium
