1. At a Glance – Blink and You’ll Miss the Profit
Asit C Mehta Financial Services Ltd (ACMFSL) currently sits at a market cap of about ₹110 crore with a stock price hovering around ₹133. On paper, this looks like a modest capital markets play. In reality, it’s a curious cocktail of stockbroking, investment banking, fintech experiments, and plain old rental income—all shaken together while profits play hide-and-seek.
The latest quarterly numbers show sales of ₹13.6 crore and a PAT loss of ₹1.85 crore. ROE is a painful -10.1%, debt-to-equity is a chunky 4.36, and book value is ₹27.5—making the stock trade at nearly 4.8× book, which is bold for a company still arguing with profitability.
Three-month returns are mildly positive, six-month returns are negative, and long-term returns look decent mostly because the base was miserable earlier. The company is expected to “give a good quarter”—a sentence that has been written about it many times before. Curious already? You should be.
2. Introduction – A 1984 Vintage Broker Still Searching for Its Mojo
Incorporated in 1984, ACMFSL is older than most discount brokers’ founders. Back then, broking meant phones, paper, and lots of shouting on Dalal Street. Fast forward to FY26, and the company is still here—but with a business model that looks like it was assembled during multiple board meetings where everyone brought a different idea.
At its core, ACMFSL provides advisory and consultancy services for fund mobilisation and corporate restructuring, largely targeting SMEs. Around that core, it has added retail broking, institutional services, investment banking, IT-enabled services, digital marketing, fintech investments, and—because why not—leasing furnished office space from its own building, Nucleus House, Mumbai.
The result? Revenue has grown strongly over the years (TTM sales growth ~33%), but profits remain inconsistent, with frequent losses and heavy reliance on other income. The company feels less like a focused capital markets firm and more like a financial services thali—everything on the plate, but not everything cooked properly.
3. Business Model – WTF Do They Even Do?
Explaining ACMFSL to a lazy but smart investor goes something like this:
- Retail & Institutional Broking: Traditional equity, debt, and forex broking services. This is the bread-and-butter and historically contributes the bulk of revenue.
- Investment Banking: Fundraising, merchant banking, private equity advisory, M&A, restructuring, valuations—the full PowerPoint buffet. Fees are episodic and depend heavily on deal flow.
- ITeS & Digital Marketing: BPO, data de-duping, SEO, SMO, paid media, consulting, recruitment, training. Yes, this is the same company that does mergers and Instagram ads.
- Real Estate Leasing: Furnished office spaces leased out from Nucleus House. Predictable, boring, and ironically one of the more stable parts of the business.
Does this diversification reduce risk? In theory, yes. In practice, it has created complexity without consistent profitability. If you had to explain this company in one line: “A broker trying to be a fintech landlord consultant.”
4. Financials Overview – Numbers That Refuse to Behave
| Metric | Latest Qtr (Dec FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 13.58 | 15.34 | 21.67 | -11.5% | -37.3% |
| EBITDA (₹ Cr) | -0.03 | -0.88 | 3.34 | NA | NA |
| PAT (₹ Cr) | -1.92 | -2.53 | 1.57 | 23.9% | -222% |
| EPS (₹) | -2.24 | -2.95 | 1.76 | 24.1% | -227% |
Annualised EPS: -2.24 × 4 = -₹8.96
Witty takeaway: Revenue is volatile, EBITDA has mood swings, and PAT behaves like a crypto coin without a whitepaper.
5. Valuation Discussion – Fair Value (Educational, Not Aspirational)
Given the negative
