What happens when a former market wizard like Madhusudan Kela picks up a sleepy textile company and turns it into a mini financial powerhouse? You get MKVentures Capital Ltd, a ₹400 crore market cap NBFC that’s trading at ₹1,040 a share and a P/E of 51.7 — the financial equivalent of saying, “Trust me bro.” The company, almost debt-free with zero borrowings, reported Q2 FY26 revenue of ₹6.07 crore and PAT of ₹3.49 crore, down 17.5% QoQ and 27% YoY. The ROE sits at 9.56% and ROCE at 16.6%, while the stock has plunged over 53% in the past year — making it look like a mutual fund NAV chart after a smallcap correction.
With an EPS of ₹20.1, and book value at ₹287, MKVentures is priced at a price-to-book of 3.6x, which means the market values every rupee of its net worth as if it’s gold-backed debt. This might be India’s only NBFC with an operating profit margin north of 90%, making it less a finance company and more a “spreadsheet magician.” Welcome to the curious world of MKVentures, where everything is about capital, but the vibe is venture.
2. Introduction
Once upon a time (okay, before FY22), MK Ventures was spinning textiles instead of term sheets. Then, Madhu Kela, the man who’s seen more cycles than Hero Honda, swooped in and acquired 83.66% stake through an open offer and share purchase agreement. And just like that, an obscure textile player turned into a financial entity trying to reinvent itself as a boutique capital allocator.
The management promptly raised its authorised capital from ₹5 crore to ₹25 crore in FY23 — a move that screamed, “Boss, ab paisa banayenge.” Borrowing limits were upped from ₹500 crore to ₹750 crore, though the latest balance sheet shows zero debt. Clearly, they’re keeping the powder dry — probably waiting for the next unicorn meltdown to lend into.
Its FY23 revenue mix looks like a fintech startup trying to explain unit economics: Interest income 38%, Fair value gains 2%, and Other Operating Income 60%. That last line deserves a medal — when “other income” earns more than “interest income”, you know creativity has entered the accounting room.
The company also disbursed ₹305.37 crore in FY23, with 64% term loans and 36% loans repayable on demand, showing that MKV’s lending book is part cautious banker, part college canteen manager.
3. Business Model – WTF Do They Even Do?
Let’s get this straight. MKVentures Capital Ltd is a Non-Systemically Important Non-Deposit Taking NBFC, which basically means SEBI trusts them — but not that much. Their business is straightforward on paper: lend money, earn interest, look fancy doing it.
Post-Kela’s takeover, MKVentures started positioning itself more like a boutique financial services holding company — blending lending operations with investments, subsidiaries, and potential forays into alternate asset management.
In FY23, they acquired Destination Properties Pvt Ltd, now a wholly-owned subsidiary, probably a move to house some asset-heavy or real estate financing arm. Think of it as the corporate equivalent of moving “funds” from one pocket to another, but with more filings and fewer excuses.
The company also maintains related party transactions with Chartered Finance & Leasing Ltd for up to ₹1,000 crore — a relationship that sounds like “friends with financial benefits.”
So, what’s the game? MKVentures is building a flexible balance sheet that can morph between credit, investment, and structured lending businesses — the kind of flexibility usually found in yoga instructors and political manifestos.
4. Financials Overview
Quarterly Results Lock: Q2 FY26 (September 2025) All figures are standalone in ₹ crore.
Metric
Latest Qtr (Sep 2025)
YoY Qtr (Sep 2024)
Prev Qtr (Jun 2025)
YoY %
QoQ %
Revenue
6.07
6.82
6.03
-11.0%
+0.7%
EBITDA
4.91
6.37
5.53
-22.9%
-11.2%
PAT
3.49
4.23
4.24
-17.5%
-17.7%
EPS (₹)
9.08
11.01
11.03
-17.5%
-17.7%
Commentary: Revenues dropped 11% YoY, while profits shrank nearly 18%. Still, margins remained royal at ~80%, which in NBFC land is basically saying, “We make money just by existing.” The EPS dip is temporary, but with such high valuations, even a sneeze in profit triggers a stock cold.
5. Valuation Discussion – Fair Value Range Only
Let’s calculate like auditors after three cups of black coffee.
P/E Method: Current EPS = ₹20.1 Industry P/E = 31.2 Company P/E = 51.7
Assuming fair range 20x–30x (reasonable for quality NBFCs), Fair EV = 11.17 × 20 → ₹223 Cr Fair EV (upper) = 11.17 × 30 → ₹335 Cr Hence, Fair Value per share ≈ ₹580–₹870.
DCF (Simplified): Assume PAT growth of 20% for next 3 years, discount rate 12%, terminal growth 4%. Fair range ~₹600–₹900 per share.
📜 Disclaimer: This fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
If there’s one thing more exciting than the financials, it’s the press releases. In FY23, MKVentures increased its borrowing limits to ₹750 crore — even though it hasn’t borrowed a paisa. It’s like buying a gym membership and then flexing about it on Instagram without ever
