1. At a Glance
Choice International Ltd is having one of those “main character” moments in Indian financial services. Q3 FY26 came in with ₹308.6 Cr revenue and ₹65.6 Cr PAT, translating into a 94% YoY profit jump while the stock calmly sits near ₹783, pretending this is all normal behaviour. Market cap? A chunky ₹17,420 Cr. ROE flirting with ~20%, ROCE also at ~20%, and margins that would make some legacy NBFCs quietly log out of the Zoom call.
But let’s not ignore the elephant in the demat account: P/E of 83x and P/B of 14x. That’s not “reasonable”, that’s “I’ve already priced in your next five success stories”. Promoter holding has slipped recently, pledges exist, and the company has been aggressively raising capital like a startup with a merchant banking license.
Still, revenue is growing, profit is exploding, order book is massive, and the business is no longer just broking – it’s broking + government advisory + NBFC + AMC + wealth + infrastructure consultancy. Basically, a financial services thali where everything is spicy.
So… is this execution excellence or valuation delusion? Let’s dig.
2. Introduction – Welcome to the Choice Cinematic Universe
Choice International started life in 1993 as a fairly standard financial services outfit. Fast forward three decades and it has turned itself into a multi-headed financial hydra. Broking? Yes. Wealth distribution? Yes. Government advisory? Absolutely. MSME lending? Of course. Mutual fund AMC? Recently unlocked. Infrastructure consultancy? Why not.
The company operates through a maze of subsidiaries (10 as of FY24), each adding a new revenue lever. Unlike many “diversified” financial companies that are diversified only on PowerPoint, Choice actually reports real revenue, real profits, and real growth across segments.
FY25 and FY26 so far have been about scale and ambition. Loan book expansion, advisory mandates, government infrastructure orders, acquisitions, and a full-blown AMC license from SEBI. The company is clearly trying to move from being a market participant to being a financial ecosystem.
But ecosystems are expensive. Capital raises, warrant conversions, promoter dilution, and rising borrowings all come with the territory. The big question is simple:
Can Choice justify its valuation by sustaining this pace of growth without tripping
over governance, leverage, or execution risks?
Before answering that, let’s understand what they actually do – because “financial services” is the most abused phrase in Dalal Street history.
3. Business Model – WTF Do They Even Do?
Think of Choice International as a financial services supermarket with multiple aisles:
Broking & Distribution (65% of FY24 revenue)
This is the bread-and-butter. Stock broking, mutual funds, insurance distribution, wealth products. With 1.2 million+ clients, 48k+ business associates, and stock broking AUM of ₹465 Bn, this is a serious scale business – not a hobby desk.
Advisory Services (23% of FY24 revenue)
This is where Choice gets interesting. Government advisory, infrastructure consultancy, investment banking, and management consulting. The order book here is eye-watering at ~₹555 Bn, including large solar, rail, road, and urban infrastructure mandates. April 2024 alone saw a ₹520 Cr solar project order in JV mode.
NBFC – MSME Lending (12% of FY24 revenue)
Choice Finserv runs the lending arm. FY24 loan book stood at ₹7.54 Bn, with NNPA ~0% and CRAR ~21%. Retail loans are still a small part, but acquisitions have rapidly scaled AUM.
What’s New?
- Mutual Fund AMC license from SEBI – passive products like ETFs coming up
- Wealth acquisitions adding ₹500–600 Cr AUM
- Insurance business becoming wholly owned
- Aggressive government infra consultancy push
In short, Choice is no longer “just broking”. It wants to be everywhere money flows.
Now the fun part – numbers.
4. Financials Overview – Numbers That
