With a market capitalisation of just ₹28.00 crores and the stock trading at ₹7.39—down 52.32% over the past year—IndiaNivesh presents a cautionary tale of operational disintegration in the NBFC sector. The company's negative book value of ₹-13.82 per share and a proprietary score of just 9 out of 100 underscore the severity of its financial distress.
The quarterly results reveal an NBFC in terminal decline. Net sales of ₹0.02 crores represent an almost complete cessation of business operations, down from ₹1.50 crores in the same quarter last year. The operating profit before depreciation, interest, tax, and other income (PBDIT excl OI) stood at a deeply negative ₹-0.51 crores, translating to an operating margin of -2550%—a metric that defies conventional financial analysis and signals fundamental operational failure.
Financial Performance: A Business in Freefall
The quarterly trend reveals a business that has effectively ceased meaningful operations. Revenue has plummeted from ₹1.83 crores in Q2 FY25 to ₹0.02 crores in Q2 FY26, whilst employee costs remain stubbornly high at ₹0.17 crores—850% of the quarter's revenue. This cost structure is utterly unsustainable for a company generating virtually no income.
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | Operating Margin | PAT Margin |
|---|---|---|---|---|
| Sep'25 | 0.02 | 0.97 | -2550.0% | 4850.0% |
| Jun'25 | 0.02 | -0.95 | -1900.0% | -4750.0% |
| Mar'25 | 0.15 | -10.66 | -333.33% | -7106.67% |
| Dec'24 | 0.51 | 0.71 | 17.65% | 139.22% |
| Sep'24 | 1.50 | 1.55 | 65.33% | 103.33% |
| Jun'24 | 1.83 | 2.01 | 81.42% | 109.84% |
The reported net profit of ₹0.97 crores for Q2 FY26 is illusory, driven entirely by a tax credit of ₹1.11 crores—representing a tax rate of 792.86%. Without this accounting adjustment, the company would have reported a pre-tax loss of ₹0.14 crores on virtually non-existent revenue. This pattern of profit generation through tax adjustments rather than operations is unsustainable and concerning.
On a half-yearly basis (H1 FY26), the company generated combined revenue of just ₹0.04 crores across both quarters, compared to ₹3.33 crores in H1 FY25—a collapse of 98.80%. The cumulative net profit for H1 FY26 stands at ₹0.02 crores, compared to ₹3.56 crores in the same period last year, representing a decline of 99.44%.
Balance Sheet Distress: Negative Net Worth and Mounting Liabilities
IndiaNivesh's balance sheet tells a story of financial devastation. As of March 2025, the company reported shareholder funds of ₹-40.50 crores, reflecting a negative net worth that has deteriorated from ₹-34.14 crores in the previous year. With equity capital of ₹3.77 crores and reserves of ₹-44.28 crores, the company has effectively wiped out all shareholder value and then some.
⚠️ Critical Balance Sheet Warning
Negative Net Worth: IndiaNivesh has shareholder funds of ₹-40.50 crores, meaning liabilities exceed assets by a substantial margin. The company's book value per share stands at ₹-13.82, indicating complete erosion of equity capital.
Deteriorating Trend: The negative net worth has worsened by ₹6.36 crores year-on-year, with accumulated losses mounting to ₹-44.28 crores in reserves and surplus.
Solvency Concerns: Current liabilities of ₹133.51 crores far exceed current assets of ₹63.70 crores, raising serious questions about the company's ability to meet short-term obligations.
The company's current liabilities stood at ₹133.51 crores as of March 2025, whilst current assets totalled only ₹63.70 crores, resulting in a severe working capital deficit. Trade payables of ₹0.39 crores and other current liabilities of ₹9.98 crores form part of this burden. The company maintains investments of ₹52.04 crores, up from ₹26.90 crores the previous year, but these appear insufficient to address the fundamental solvency issues.
Cash flow from operations has turned deeply negative, with the company reporting an outflow of ₹10.00 crores for FY25, compared to an outflow of ₹2.00 crores in FY24. This represents the lowest operating cash flow in the available data series and signals an inability to generate cash from core business activities. The company has relied on financing cash flow of ₹8.00 crores to partially offset operational haemorrhaging.
Operational Collapse: From Active NBFC to Dormant Entity
IndiaNivesh's transformation from an active NBFC to what appears to be a largely dormant entity is starkly evident in its operational metrics. The company, which describes itself as actively involved in investing, financing activity, acquisition and management of stressed assets, and consultancy services, has seen these activities grind to a virtual halt.
The Revenue Evaporation
IndiaNivesh's revenue trajectory reveals a business in terminal decline. From ₹119.00 crores in FY20, revenue collapsed to ₹6.00 crores in FY21, then fluctuated between ₹5.00 crores and negative ₹1.00 crore in subsequent years. The latest quarter's revenue of ₹0.02 crores represents the nadir of this downward spiral, suggesting the company has effectively ceased meaningful business operations.
The five-year sales growth rate of -51.91% understates the severity of the decline, as the company's revenue base has virtually disappeared in recent quarters. Interest expenses spiked dramatically to ₹9.85 crores in Q1 FY25 before moderating to ₹0.23 crores in Q2 FY26, suggesting potential debt restructuring or settlement activities. However, with minimal revenue generation, the company lacks the operational capacity to service any meaningful debt burden.
Employee costs have remained relatively stable at ₹0.17 crores per quarter, but this represents an enormous burden relative to the company's revenue-generating capacity. The employee cost to revenue ratio of 850% in Q2 FY26 is economically nonsensical and highlights the fundamental mismatch between the company's cost structure and its income-generating ability.
Peer Comparison: Lagging Far Behind Industry Standards
IndiaNivesh's performance places it at the bottom of its peer group across virtually every metric. The company's return on equity stands at 0.0%, compared to peers like Jindal Capital's 7.04%. More critically, IndiaNivesh's negative book value of ₹-13.82 per share and price-to-book ratio of -0.69x reflect a company that has destroyed shareholder value, whilst peers maintain positive book values and trade at substantial premiums.
| Company | P/E (TTM) | ROE (%) | Debt/Equity | Price/Book |
|---|---|---|---|---|
| IndiaNivesh | NA (Loss Making) | 0.0% | -3.25 | -0.69 |
| Darjeeling Ropew | 105.12 | — | — | — |
| Navigant Corp. | 16.53 | — | — | — |
| Apex Cap. & Fin. | 71.04 | — | — | — |
| Jindal Capital | 33.57 | 7.04% | 0.70 | 2.45 |
The company's debt-to-equity ratio of -3.25 reflects its negative net worth rather than any financial strength. Whilst this technically indicates a "net cash" position, it is misleading—the negative equity base renders traditional leverage metrics meaningless. The comparison with Jindal Capital, which maintains a healthy ROE of 7.04%, a manageable debt-to-equity ratio of 0.70, and trades at 2.45 times book value, underscores the chasm between IndiaNivesh and functional NBFCs.
Valuation Analysis: Negative Book Value Renders Traditional Metrics Meaningless
IndiaNivesh's valuation metrics paint a picture of a company that defies conventional analysis. With a negative book value, the price-to-book ratio of -0.69x is technically below book value, but this is not a buying opportunity—it reflects a company whose liabilities exceed its assets. The enterprise value to sales ratio of 72.77x appears astronomical, but with sales of just ₹0.02 crores quarterly, any multiple becomes absurd.
The company's valuation grade has oscillated between "Risky" and "Attractive" in recent months, with the most recent assessment on 15 October 2025 marking it as "Risky." However, this classification understates the severity of the situation. With negative book value, evaporating revenue, and mounting losses, IndiaNivesh represents not merely a risky investment but a capital destruction vehicle.
At the current market price of ₹7.39, the company commands a market capitalisation of ₹28.00 crores. This values the company at approximately 1400 times its quarterly revenue of ₹0.02 crores, or roughly 28.87 times its half-yearly profit of ₹0.97 crores—metrics that highlight the disconnect between market valuation and operational reality. The stock trades 57.16% below its 52-week high of ₹17.25, reflecting the market's growing recognition of the company's deteriorating fundamentals.
Shareholding Pattern: Promoter Consolidation Amidst Decline
The shareholding pattern reveals dramatic changes in ownership structure, with promoter holding surging from 62.45% in June 2025 to 100.00% in September 2025—an increase of 37.55 percentage points. This consolidation occurred after a volatile period that saw promoter stake drop to 21.32% in March 2025 before recovering. The move to 100% promoter ownership suggests either a deliberate delisting strategy or an inability to attract external investors.
| Quarter | Promoter % | QoQ Change | FII % | MF % | DII % |
|---|---|---|---|---|---|
| Sep'25 | 100.00% | +37.55% | 0.00% | 0.00% | 0.89% |
| Jun'25 | 62.45% | +41.13% | 0.00% | 0.00% | 0.89% |
| Mar'25 | 21.32% | -41.13% | 0.00% | 0.00% | 0.89% |
| Dec'24 | 62.45% | 0.00% | 0.00% | 0.00% | 0.89% |
The complete absence of foreign institutional investors (FIIs) and mutual funds signals institutional investors' total lack of interest in the company. The minimal other domestic institutional investor (DII) holding of 0.89% has remained unchanged for several quarters, suggesting these holdings may be legacy positions rather than active investments. Non-institutional investors hold 36.66%, but with the promoters now controlling 100%, the free float appears negligible.
Key promoter entities include Sneh Shares & Securities Private Limited (44.38%), Balashri Commercial Limited (13.31%), and IndiaNivesh Capitals Limited (4.76%). The consolidation of ownership in promoter hands, whilst eliminating public float concerns, raises questions about the company's future direction and whether it will continue as a listed entity.
Stock Performance: Catastrophic Wealth Destruction Across All Timeframes
IndiaNivesh's stock performance represents one of the most severe cases of wealth destruction in the Indian equity market. The stock has declined 52.32% over the past year, compared to the Sensex's gain of 9.00%, resulting in negative alpha of -61.32 percentage points. This underperformance extends across virtually every timeframe, with the stock down 88.01% over three years whilst the Sensex gained 37.22%.
| Period | Stock Return | Sensex Return | Alpha | Assessment |
|---|---|---|---|---|
| 1 Week | -6.81% | +1.62% | -8.43% | Sharp decline |
| 1 Month | -8.08% | +3.09% | -11.17% | Accelerating losses |
| 3 Months | -11.60% | +4.92% | -16.52% | Persistent weakness |
| 6 Months | -35.18% | +3.97% | -39.15% | Severe erosion |
| 1 Year | -52.32% | +9.00% | -61.32% | Catastrophic |
| 3 Years | -88.01% | +37.22% | -125.23% | Near-total loss |
| 5 Years | -67.16% | +93.78% | -160.94% | Wealth destruction |
The stock's risk-adjusted return of -1.22 over one year, combined with volatility of 42.92%, places it firmly in the "high risk, low return" category. The beta of 1.50 indicates the stock is 50% more volatile than the market, but this elevated risk has not been compensated with any return—only mounting losses. The stock has underperformed its NBFC sector by 77.43 percentage points over the past year, with the sector gaining 25.11% whilst IndiaNivesh collapsed.
Technical indicators paint a uniformly bearish picture. The stock trades below all major moving averages—5-day (₹7.52), 20-day (₹7.97), 50-day (₹8.35), 100-day (₹8.71), and 200-day (₹10.39)—signalling persistent downward momentum. The current trend is classified as "mildly bearish," but this understates the severity of the decline. With immediate support at the 52-week low of ₹6.88 and resistance at ₹7.97, the stock faces a narrow trading range with limited upside potential.
"With revenue of just ₹0.02 crores, negative book value of ₹-13.82 per share, and a proprietary score of 9 out of 100, IndiaNivesh represents not an investment opportunity but a capital destruction vehicle that investors should avoid at all costs."
Investment Thesis: Multiple Red Flags Signal Uninvestable Company
IndiaNivesh's investment thesis, or lack thereof, is defined by an accumulation of critical failures across every dimension of analysis. The company's Mojo score of 9 out of 100 reflects "Strong Sell" status, with the proprietary rating system identifying multiple factors that render the company uninvestable. The valuation grade of "Risky," quality assessment of "Below Average," negative financial trend, and mildly bearish technical trend all point in the same direction: exit.
The company's quality grade of "Below Average" stems from its five-year sales growth of -51.91%, average ROE of 0.0%, and minimal institutional holdings of 0.89%. These metrics indicate a company that has failed to generate returns for shareholders, lacks institutional confidence, and has seen its business model collapse over time. The financial trend classification of "Negative" reflects the lowest operating cash flow of ₹-10.41 crores, declining PAT of ₹0.97 crores (down 37.4% YoY), and lowest PBDIT of ₹-0.51 crores.
Key Strengths & Risk Factors
Limited Positives
- Zero debt burden: No long-term debt on books reduces financial risk, though offset by negative equity
- Promoter consolidation: 100% promoter ownership eliminates minority shareholder conflicts
- Tax credits available: Accumulated losses may provide future tax benefits if operations revive
- Asset base intact: Fixed assets of ₹22.21 crores and investments of ₹52.04 crores provide some residual value
- Minimal trading volumes: Low liquidity may prevent panic selling, though also impedes exit
Critical Risk Factors
- Revenue collapse: Quarterly sales of ₹0.02 crores represent virtual cessation of business operations
- Negative net worth: Shareholder funds of ₹-40.50 crores indicate complete equity erosion
- Unsustainable cost structure: Employee costs 850% of revenue with no path to profitability
- Operating cash burn: Annual operating cash outflow of ₹10.00 crores depletes remaining resources
- No institutional support: Zero FII/MF holdings signal complete loss of investor confidence
- Persistent underperformance: 88.01% decline over three years demonstrates systematic value destruction
- Solvency concerns: Current liabilities of ₹133.51 crores exceed current assets of ₹63.70 crores
Outlook: What Lies Ahead
Unlikely Positive Catalysts
- Asset monetisation or sale of investments to reduce liabilities
- Strategic restructuring or merger with healthier entity
- Debt settlement reducing liability burden
- Voluntary delisting to reduce regulatory costs
Probable Red Flags
- Further revenue deterioration towards complete dormancy
- Mounting losses consuming remaining asset base
- Inability to meet current liabilities triggering insolvency
- Regulatory action due to negative net worth
- Delisting without fair exit opportunity for minority shareholders
The Verdict: An Uninvestable Entity Facing Existential Crisis
Score: 9/100
For Fresh Investors: Avoid completely. IndiaNivesh represents a capital destruction vehicle with negative net worth, virtually non-existent revenue, and no credible path to recovery. The company's fundamentals have deteriorated beyond the point of investment consideration.
For Existing Holders: Exit immediately at any available price. With quarterly revenue of ₹0.02 crores, negative book value of ₹-13.82 per share, and mounting losses, continued holding exposes investors to total capital loss. The 100% promoter ownership may precede delisting, potentially limiting exit opportunities.
Fair Value Estimate: Not applicable—traditional valuation metrics are meaningless for a company with negative net worth and virtually no operating business. Any market price above zero reflects speculative hope rather than intrinsic value.
Note— ROCE = (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions. IndiaNivesh Ltd. exhibits severe financial distress with negative net worth, and investment in such securities carries substantial risk of total capital loss.
