1. At a Glance – Blink and You’ll Miss the Profits
Nexome Capital Markets Ltd (formerly known in filings as SMIFS Capital Markets) is that classic Dalal Street character who owns a mansion (₹265 book value), rents out one dusty room (₹1.12 Cr quarterly revenue), and then complains about cash flow. With a market cap of ₹48.5 Cr, CMP ₹82.6, and a price-to-book of just 0.31, the stock looks like a deep-value buffet… until you taste the food.
Latest quarter Q3 FY26 (Dec 2025) delivered revenue of ₹1.12 Cr, down a brutal 84.8% YoY, and PAT of –₹1.00 Cr (yes, negative, with confidence). ROE is chilling at 0.69%, ROCE at 1.24%, and the stock still trades at a P/E of ~30x because earnings are basically playing hide-and-seek.
Returns? –33% in 3 months, –23% in 6 months, –15% in 1 year. Promoters? Holding 45.62%, but reduced stake by –6.53% recently. Debt is low (₹6.82 Cr, D/E 0.04), current ratio comfy (2.74).
So what do we have here? A merchant banker with a banker’s balance sheet and a meme-stock P&L. Curious? You should be.
2. Introduction – Merchant Banking, Minus the Merchanting
Incorporated in 2000, Nexome Capital Markets is a SEBI-registered Category I Merchant Banker. On paper, this is the Ivy League of Indian capital markets licenses. In reality, the company’s revenue engine runs more like a second-hand scooter with a Ferrari RC book.
The firm dabbles in merchant banking, underwriting, advisory, G-Sec trading, IPO marketing, M&A advisory, loan syndication, and project finance. Basically, if a finance buzzword exists, Nexome has probably put it in a PowerPoint at some point.
But here’s the plot twist: despite two decades in capital markets, FY25 sales were just ₹43.46 Cr, and TTM sales have fallen to ₹36.0 Cr. Profits exist, but only when other income decides to show mercy. Core operating margins hover around 2%, which is… not exactly merchant-banking royalty.
And Q3 FY26? A clean loss. So the question every investor must ask:
Is this a temporarily sick merchant
