1. At a Glance – Small NBFC, Big Confidence, Tiny Margins of Safety
Marg Techno-Projects Ltd is a ₹52.8 Cr market-cap gold loan NBFC trading at ₹37.2, down 22.7% in 3 months, yet still carrying a P/E north of 80–90 depending on how charitable you are with EPS maths.
The company runs 20 branches, lends against household gold, and somehow manages an Operating Margin of ~59%, which would make even Muthoot blink twice.
But before you clap, look down.
ROE: 3.3%, ROCE: 8.3%, Debt: ₹24.1 Cr, Interest Coverage: 1.25x.
This is not a compounding machine. This is a leveraged interest spread experiment hoping gold prices, credit discipline, and capital markets stay in a good mood — forever.
Latest quarter (Dec 2025) shows Sales ₹1.54 Cr, PAT ₹0.18 Cr, and EPS of ₹0.13. Sounds cute? Annualise it wrongly and you’ll fool yourself. Do it correctly and reality hits harder than a margin call.
So the question is simple:
Is this a hidden gold mine… or just gold foil wrapped around leverage?
2. Introduction – The NBFC That Thinks It’s a Fintech
Marg Techno-Projects has one foot in traditional gold loans and the other in “we also have an online platform” territory.
Every NBFC brochure says that. Very few actually execute.
Founded in 1993, the company now positions itself as a doorstep + online gold loan provider, charging interest starting 0.89% per month, lending based on purity and net gold weight.
On paper, this is a dream business:
- Gold as collateral
- Short tenure loans
- High yields
- Low credit loss (in theory)
In practice?
Margins look great, but returns on capital look like they skipped leg day.
The
company recently raised ₹7 Cr via preferential allotment at ₹50 — a 35% premium to CMP — which tells you one thing clearly:
Promoters love their valuation more than public markets do.
Is that confidence… or optimism bordering on denial?
3. Business Model – WTF Do They Even Do? (Gold Edition)
Let’s explain Marg Techno like you’re smart but impatient.
People bring gold → Marg lends money → charges interest → hopes borrower repays → otherwise melts gold dreams.
That’s it.
Key features:
- Loans start at ₹3,500 per gram
- Interest begins at 0.89% per month
- 20 physical branches
- Claims of online & doorstep processing
Revenue is ~99% interest income, meaning no fancy diversification, no fee wizardry, no asset-light magic.
Gold loan NBFCs live and die by:
- Cost of borrowing
- Gold price volatility
- Auction efficiency
- Scale
Marg has none of the scale, moderate leverage, and thin buffers.
So tell me — in a market with Muthoot, Manappuram, and banks… what is Marg’s unfair advantage?
4. Financials Overview – The Table That Brings You Back to Earth
Q3 FY26 Performance Snapshot
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1.54 | 1.39 | 1.51 | 10.8% | 2.0% |
| EBITDA | 0.91 | 0.85 | 1.02 | 7.1% | -10.8% |
| PAT | 0.18 | 0.16 | 0.13 | 12.5% | 38.5% |
| EPS (₹) | 0.13 | 0.16 | 0.13 | -18.8% | 0.0% |
