1. At a Glance – Small NBFC, Big Price Action, Tiny Profits
Fynx Capital Ltd is that classic Indian micro-NBFC which looks like a penny stock, behaves like a startup, and is priced like it has already cracked the NBFC Hall of Fame. Market cap sits at ₹139 Cr, while FY25 sales are a grand ₹3.10 Cr and PAT is ₹-2.99 Cr. That’s not a typo — the stock trades at ~45× Price to Sales and 7.7× Book Value, despite negative ROE (-20%) and negative ROCE (-18.9%).
The stock price has gone wild — +402% in one year and +103% in six months — while the business itself is still struggling to remember how profits work. Latest quarter revenue came in at ₹1.57 Cr, up sharply QoQ, but losses continue. Rights issue of ₹16 Cr has been fully utilised, borrowings have jumped, management has changed multiple times, and a 1:10 stock split is on the way.
This is not a sleepy NBFC.
This is a corporate thriller.
2. Introduction – Welcome to the NBFC Turnaround Olympics
Fynx Capital (formerly Rajath Finance Ltd) has existed since 1984, which technically makes it older than many “legacy NBFCs”. Unfortunately, age hasn’t translated into financial wisdom yet.
For most of its life, the company operated at a tiny scale, inconsistent profits, and periodic losses. Then came FY24–FY26 — suddenly we have:
- A name change
- Rights issue
- Auditor change
- MD & CFO musical chairs
- Borrowing limits raised to ₹100 Cr
- Stock split
- ESOPs
- Chairman appointment
- And stock price behaving like it drank Red Bull
This is either:
- The early stage of a genuine turnaround
OR
- A classic case of capital market excitement running way ahead of business reality
Which one is it?
Let’s autopsy the numbers.
3. Business Model – WTF Do They Even Do?
On paper, Fynx Capital is a Non-Systemically Important, Non-Deposit Accepting NBFC.
What they claim to do:
- MSME loans
- Working capital finance
- Micro-enterprise lending
