NBI Industrial Finance Company Ltd Q2 FY25 – When Your Portfolio Becomes a Museum of Blue Chips
1. At a Glance
Imagine an NBFC so old it’s practically seen more governments than memes, and so lazy in lending that it turned investing in HUL and MRF into a full-time career. That’s NBI Industrial Finance Company Ltd for you — the vintage stock collector of Dalal Street.
With a market cap of ₹668 crore, the company sits on an equity portfolio worth over ₹2,200 crore, mostly parked in the bluest of blue chips — 3M India, Bosch, Eicher Motors, HDFC Bank, Nestlé, MRF, and a sprinkle of other multi-decade compounding gods.
The stock trades at ₹2,262, about 41% down YoY, because apparently, patience doesn’t get rewarded immediately — only memes do. With an EPS of ₹34.2, the P/E of 66.6 looks like it’s competing with Zomato’s optimism.
Still, the book value of ₹10,887 makes it look like a goldmine being sold at a P/B of 0.21 — cheaper than the kulhad chai outside NSE. Add to that, zero debt, ROE of 0.27%, and a promoter holding of 74.2%, and you get a sleepy NBFC that’s practically a holding company in disguise, wearing the RBI badge just for fashion.
Quarterly PAT jumped 36.7% QoQ to ₹6.03 crore on sales of ₹8.59 crore, which sounds tiny — until you realize they make that mostly by collecting dividends while sipping Darjeeling tea.
2. Introduction
Let’s be honest — NBI Industrial Finance is not your average NBFC. It doesn’t lend. It doesn’t chase startups. It doesn’t even try to impress analysts. What it does is sit quietly on an ocean of blue-chip shares like an old uncle who bought Infosys in 1993 and still refuses to sell.
Founded in 1936 as The New Bank Limited, the company once actually did banking — yes, real loans, real deposits. But after its banking business got nationalized in 1980, NBI decided that lending is too stressful and equities are far more peaceful. Since then, it has been doing what most of us dream of — being a full-time investor, except with RBI registration.
While most NBFCs chase NIMs (Net Interest Margins), NBI chases Nifty moves. Its core business now? Collecting dividends and fair-value gains. Its core activity? Praying to the gods of equity markets.
Interestingly, over the years, dividend income has shot from 2% of total income in FY20 to 89% in FY22, while interest income collapsed from 97% to 3%. It’s the financial version of “don’t work hard, let your investments work for you.”
So, is NBI a sleeping giant, or just a museum for old money? Let’s unbox the vintage treasure chest.
3. Business Model – WTF Do They Even Do?
NBI Industrial Finance is technically a Non-Banking Financial Company (NBFC), but let’s call it what it really is — a permanent portfolio vehicle. Think of it as India’s Berkshire Hathaway, except Warren Buffett is replaced by a committee of ultra-patient investors who don’t tweet.
Its core activities include:
Investment in Listed and Unlisted Shares: The company’s ₹2,200 crore investment portfolio is a who’s who of corporate royalty. From HDFC Bank to MRF, Nestlé to Eicher Motors, these are not random picks — they’re the kind of stocks your dad says, “I wish I bought more of.”
Long-Term Orientation: They invest with “medium to long-term appreciation potential.” Translation: they buy and forget.
Dividend Collection Agency: About 90% of revenue now comes from dividends — the ultimate passive income NBFC.
It doesn’t lend, doesn’t borrow, and doesn’t even pretend to diversify. Its borrowings = ₹0, its cash flows = mostly from dividends, and its risk appetite = next to none. So technically, NBI is an NBFC because of regulatory classification — functionally, it’s an equity investment trust with an RBI license.
Imagine an NBFC that behaves more like a retirement fund — steady, predictable, and mostly indifferent to quarterly excitement.
4. Financials Overview
Let’s decode the latest Quarterly Results (Q2 FY25). The results clearly state “Unaudited Financial Results for the Quarter ended 30 September 2025,” confirming it’s a Quarterly Result.
Thus, Annualised EPS = ₹20.41 × 4 = ₹81.64.
Source table
Metric
Latest Qtr (Sep 2025)
YoY Qtr (Sep 2024)
Prev Qtr (Jun 2025)
YoY %
QoQ %
Revenue (₹ Cr)
8.59
6.79
0.42
26.5%
1,945%
EBITDA (₹ Cr)
7.91
5.95
-0.29
32.9%
2,828%
PAT (₹ Cr)
6.03
4.41
-0.35
36.7%
—
EPS (₹)
20.41
17.95
-1.18
13.7%
—
Commentary: Quarterly EPS at ₹20.41 means the company earns more per share in one quarter than most fintechs earn in hope. The jump from a negative quarter to ₹6 crore PAT is the kind of turnaround that makes even seasoned investors double-check the Excel sheet.
Operating profit margins of 92% are absurdly high — only possible because there are no employees making loans or running branches.
5. Valuation Discussion – Fair Value Range Only
Let’s use three simple methods.
A. P/E Method Annualised EPS = ₹81.64 If we apply industry average P/E (21.1), fair value ≈ ₹1,714. If we use its own historical P/E (66.6), fair value ≈ ₹5,434. ➡️ Fair value range: ₹1,700 – ₹5,400
B. EV/EBITDA Method EV/EBITDA (Industry Median ≈ 12x; NBI current 52x) EBITDA (TTM) = ₹13 Cr At 12x EBITDA = ₹156 Cr → Unrealistically low given ₹2,200 Cr portfolio. At 52x = ₹676 Cr, matching current m-cap.
C. DCF (Simplified) Assuming steady dividend + fair value gains yield 6–8% on ₹2,200 Cr portfolio → Annual return ₹132–₹176 Cr before tax. Discounting over 10 years at 10% → intrinsic range ₹1,300–₹1,800 Cr.
➡️ Final Educational Fair Value Range: ₹1,700 – ₹5,400
