1. At a Glance
Choice International has quietly grown into a financial services powerhouse, reporting ₹238 Cr revenue (+16% YoY) and ₹48 Cr PAT (+50% YoY) in Q1 FY26. It blends broking, advisory, NBFC, and investment banking into one spicy cocktail of returns—with an ROE nearing 19% and a market cap of ₹15,000+ Cr.
2. Introduction with Hook
Imagine a hybrid of Zerodha, Motilal Oswal, and a dash of L&T Finance… now put it on steroids. That’s Choice International Ltd, a financial Frankenstein that’s:
- Delivered 66% profit CAGR over 5 years
- Grown 3x in revenue since FY22
- Multibagged in stock price: 100% up in the last 1 year
With ₹900+ Cr revenue TTM and a ₹15,000 Cr market cap, this is no longer just a broker—it’s an empire in the making.
3. Business Model (WTF Do They Even Do?)
Choice Group’s service bouquet includes:
- Retail Broking & Distribution (via Choice Finserv & Choice Wealth)
- NBFC Lending (under Choice Finserv & subsidiary NBFCs)
- Government Advisory (Infra consultancy, PPP projects, EPC advisory)
- Investment Banking (M&A, debt syndication, equity placements)
- WealthTech & FinTech platforms
It operates through a subsidiary-led structure, combining fee-based and fund-based revenue models—essentially blending retail, institutional, and public sector businesses in one unified house.
4. Financials Overview
| Year | Revenue (₹ Cr) | PAT (₹ Cr) | OPM (%) | EPS (₹) |
|---|---|---|---|---|
| FY22 | 285 | 54 | 32% | 2.69 |
| FY23 | 393 | 60 | 27% | 3.02 |
| FY24 | 756 | 131 | 30% | 6.56 |
| FY25 | 910 | 163 | 31% | 7.84 |
| TTM | 944 | 179 | 33% | 8.62 |
Growth Engine:
- PAT up 3x in 3 years
- Operating profit up 7x since FY20
- OPM consistently trending upwards despite sector-wide cost inflation
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹761 |
| EPS (TTM) | ₹8.62 |
| PE Ratio | 88.4x |
| Book Value | ₹51.5 |
| P/B Ratio | 14.8x |
| ROE | 18.9% |
| ROCE | 21.6% |
EduInvesting FV Range:
- Conservative DCF/PEG Blend: ₹480–550
- Aggressive Growth Multiple (FY26 EPS est. ₹11): ₹750–950
- Market Emotion Zone (2026 bull case): ₹1000+
Verdict: Expensive on paper, but priced for hyper-growth.
6. What’s Cooking – News, Triggers, Drama
Recent buzz:
- Q1 FY26 Results: ₹48 Cr PAT (+50% YoY)
- Preferential Issue Update: Monitoring agency reports released
- Strategic Subsidiary Expansion: Re-appointment of Independent Directors
- Investor Deck Highlights: 25,000+ retail clients added; strong NBFC growth; infra advisory vertical gaining traction
Upcoming triggers:
- Fintech platform rollout
- IPO of subsidiary business (speculated)
- Government infra mandates via NMP or PPP advisory wins
7. Balance Sheet
| Item | FY24 | FY25 |
|---|---|---|
| Equity Capital | ₹199 Cr | ₹200 Cr |
| Reserves | ₹432 Cr | ₹828 Cr |
| Borrowings | ₹455 Cr | ₹463 Cr |
| Other Liabilities | ₹718 Cr | ₹1,129 Cr |
| Total Assets | ₹1,805 Cr | ₹2,619 Cr |
Key Highlights:
- Leverage increasing, but manageable
- Reserves doubled in 1 year
- Capital employed being actively deployed across lending and advisory verticals
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash Flow |
|---|---|---|---|---|
| FY23 | +138 | -48 | -29 | +62 |
| FY24 | -148 | -18 | +224 | +58 |
| FY25 | -294 | -161 | +449 | -6 |
Interpretation:
- Negative CFO in FY25 due to NBFC book expansion
- Large inflows from financing indicate aggressive capital raising
- Strategic deployment visible in asset side growth
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 16 | 25 | 22 |
| ROE (%) | 16 | 19 | 19 |
| EPS (₹) | 3.02 | 6.56 | 7.84 |
| Net Margin (%) | 15.3 | 17.3 | 17.9 |
| Promoter Holding | 58.21% | 58.13% | 56.44% |
Slight fall in promoter holding this quarter (-1.77%), but still strong and FII interest remains stable.
10. P&L Breakdown – Show Me the Money
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 393 | 756 | 910 |
| Operating Profit | 107 | 225 | 285 |
| Net Profit | 60 | 131 | 163 |
| EPS (₹) | 3.02 | 6.56 | 7.84 |
| OPM (%) | 27 | 30 | 31 |
Trend: Healthy, consistent margin expansion and doubling of earnings year-on-year.
11. Peer Comparison
| Company | CMP (₹) | PE | ROE (%) | PAT (₹ Cr) | CMP/BV |
|---|---|---|---|---|---|
| Bajaj Finserv | 2053 | 36.9 | 13.4 | 8885 | 4.5 |
| Edelweiss Fin. | 116 | 27.5 | 8.6 | 398 | 2.47 |
| JM Financial | 169 | 21.0 | 8.5 | 773 | 1.67 |
| Choice Intl. | 761 | 88.4 | 18.9 | 179 | 14.8 |
Clearly, Choice is the market’s new favorite, trading at tech-style multiples, banking on multi-vertical growth and brand moat.
12. Miscellaneous – Shareholding, Promoters
| Category | % Holding (Jun 2025) |
|---|---|
| Promoters | 56.44% |
| FIIs | 14.13% |
| DIIs | 0.19% |
| Public | 29.24% |
Key Observations:
- FII confidence growing slowly (from 12% to 14%)
- DII entry visible
- No dividend payout = company is retaining capital to expand
13. EduInvesting Verdict™
Choice International is not your average BSE 500 name. It’s a smallcap that’s grown up too fast—and the market knows it.
The Good:
- Strong financials, diversified model
- NBFC + Broking + Advisory = killer combo
- EPS doubling in 3 years
The Risks:
- PE of 88x is not cheap
- Cash burn visible in lending biz
- Valuation assumes uninterrupted hyper-growth
Final Word:
It’s not “cheap”, it’s not “boring”, and it’s definitely not “done”.
Whether you’re a broker, banker, or just broke—Choice is making noise in Dalal Street.
Metadata
– Written by EduInvesting Team | 21 July 2025
– Tags: Choice International, NBFC, Financial Services, Broking, High PE Stocks, Q1 FY26
