The company's return to marginal profitability in Q3 FY26 masks deeper operational malaise. Whilst the sequential improvement from Q2's significant loss provides temporary relief, the year-on-year performance reveals a concerning trajectory of revenue erosion and persistent core business unprofitability. Trading at ₹13.05 per share as of January 30, 2026, Market Creators' stock has declined 12.12% over the past year, significantly underperforming both the Sensex (+7.18%) and its NBFC sector peers (+20.22%).
The company's proprietary Mojo Score stands at a dismal 16 out of 100, firmly in "STRONG SELL" territory, reflecting the convergence of deteriorating fundamentals, bearish technical trends, stretched valuation despite operational losses, and below-average quality metrics.
| Quarter | Dec'25 | Sep'25 | Jun'25 | Mar'25 | Dec'24 | Sep'24 | Jun'24 |
|---|---|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1.19 | 1.21 | 1.42 | 1.23 | 1.76 | 2.29 | 1.90 |
| QoQ Change | -1.65% | -14.79% | +15.45% | -30.11% | -23.14% | +20.53% | — |
| YoY Change | -32.39% | -47.16% | -25.26% | — | — | — | — |
| Net Profit (₹ Cr) | 0.02 | -0.24 | -0.12 | -0.15 | 0.13 | 0.22 | 0.10 |
| Operating Margin (%) | -7.56% | -20.66% | -7.75% | -25.20% | 4.55% | 9.61% | 6.32% |
| PAT Margin (%) | 1.68% | -19.83% | -8.45% | -12.20% | 7.39% | 9.61% | 5.26% |
Financial Performance: Revenue Erosion Exposes Structural Weakness
Market Creators' Q3 FY26 financial performance reveals a company struggling to maintain operational viability. Revenue of ₹1.19 crores in Q3 FY26 declined marginally by 1.65% quarter-on-quarter from ₹1.21 crores in Q2 FY26, but the year-on-year comparison paints a far grimmer picture with a 32.39% collapse from ₹1.76 crores in Q3 FY25. This marks the seventh consecutive quarter of year-on-year revenue decline, with the company's top line shrinking from ₹2.29 crores in Sep'24 to current levels.
The company's core operations remain deeply unprofitable, with operating profit (PBDIT excluding other income) registering a loss of ₹0.09 crores in Q3 FY26, translating to a negative operating margin of 7.56%. Whilst this represents an improvement from Q2 FY26's catastrophic -20.66% margin, it marks the fourth consecutive quarter of operating losses since Q1 FY26. The company has been unable to generate positive operating cash flows from its primary NBFC activities since March 2025.
Market Creators' reported net profit of ₹0.02 crores in Q3 FY26 was entirely dependent on other income of ₹0.37 crores, which exceeded the company's operating losses and interest expenses combined. This reliance on non-operating income to mask operational deficiencies raises serious questions about business sustainability. Interest expenses of ₹0.23 crores consumed 19.33% of revenues, reflecting the burden of leverage in a low-revenue environment.
Operational Challenges: Weak ROE Highlights Capital Inefficiency
Market Creators' operational metrics underscore fundamental challenges in generating acceptable returns on shareholder capital. The company's average Return on Equity (ROE) stands at a meagre 1.44%, significantly below acceptable thresholds for financial services companies and indicative of severe capital inefficiency. The latest ROE of -4.23% reflects the recent quarterly losses and further deterioration in profitability metrics.
The company's balance sheet reveals growing stress. Current liabilities surged to ₹32.95 crores as of March 2025 from ₹28.78 crores in March 2024, whilst shareholder funds increased marginally to ₹10.75 crores. This resulted in a debt-to-equity ratio of 0.73, representing moderate leverage that becomes concerning given the company's inability to generate consistent operating profits. Trade payables specifically increased from ₹12.76 crores to ₹15.93 crores, suggesting potential working capital pressures.
The company's Return on Capital Employed (ROCE) of -13.53% in the latest period highlights the destruction of value across the capital base. This negative ROCE, combined with persistent operating losses, indicates that Market Creators is consuming rather than creating economic value. The five-year sales growth of just 2.70% and EBIT growth of 7.11% reflect stagnation rather than expansion, particularly troubling for a financial services company that should benefit from compounding effects.
Critical Warning: Operational Losses Persist
Core Business Unprofitability: Market Creators has recorded operating losses (excluding other income) for four consecutive quarters from Q1 FY26 through Q3 FY26. Operating margins of -7.56% in Q3 FY26 indicate the company's primary NBFC activities are unable to generate positive cash flows.
Other Income Dependency: The reported net profit of ₹0.02 crores in Q3 FY26 was entirely attributable to other income of ₹0.37 crores. Without this non-operating income, the company would have posted its fourth consecutive quarterly loss.
ROE Deterioration: With an average ROE of 1.44% and latest ROE of -4.23%, the company demonstrates persistent inability to generate acceptable returns on shareholder equity, raising fundamental questions about business viability.
NBFC Sector Context: Severe Underperformance Against Peers
Market Creators' struggles stand in stark contrast to the broader NBFC sector's robust performance. Whilst the NBFC sector delivered returns of 20.22% over the past year, Market Creators declined 12.12%, resulting in a staggering 32.34 percentage point underperformance. This divergence reflects company-specific challenges rather than sector headwinds, as most NBFCs have benefited from strong credit growth, improving asset quality, and healthy net interest margins.
The company's institutional holdings stand at 0.0%, with no participation from foreign institutional investors, mutual funds, or insurance companies. This complete absence of institutional interest signals severe concerns about the company's governance, growth prospects, and financial sustainability. For comparison, quality NBFCs typically attract significant institutional participation given the sector's growth potential and regulatory oversight.
Market Creators' quality grade of "Below Average" reflects its weak long-term financial performance across multiple parameters. The company's five-year sales growth of 2.70% lags significantly behind industry standards, whilst the average ROE of 1.44% falls far short of the double-digit returns typically expected from financial services businesses. The company's classification as "Below Average quality company basis long term financial performance" since November 2025 underscores sustained operational challenges.
Peer Comparison: Valuation Disconnect Despite Operational Weakness
A comparative analysis of Market Creators against NBFC peers reveals a troubling valuation disconnect. Despite persistent operational losses and negative ROE, the company trades at a Price-to-Book Value of 1.32x, a premium to several peers with superior fundamentals.
| Company | P/E (TTM) | ROE (%) | Debt to Equity | Price to Book |
|---|---|---|---|---|
| Market Creators | NA (Loss Making) | 1.44% | 0.73 | 1.32x |
| Stellar Capital | 109.21x | — | — | — |
| Dhenu Buildcon | NA (Loss Making) | 0.00% | -77.83 | 5.52x |
| Rander Corporation | NA (Loss Making) | 2.58% | -0.02 | 0.61x |
| Cubical Financial | 87.57x | 2.94% | 0.00 | 0.92x |
| Franklin Leasing | 67.04x | 0.51% | 0.00 | 0.37x |
Market Creators' ROE of 1.44% positions it in the middle of this peer group, though still far below acceptable standards for financial services companies. Rander Corporation (2.58% ROE) and Cubical Financial (2.94% ROE) demonstrate marginally better capital efficiency, whilst Dhenu Buildcon's 0.00% ROE and Franklin Leasing's 0.51% ROE reflect even weaker performance. The absence of P/E ratios for most peers, including Market Creators, highlights the prevalence of loss-making operations in this micro-cap NBFC segment.
What distinguishes Market Creators unfavourably is its relatively higher P/BV multiple of 1.32x despite operational losses. Rander Corporation trades at just 0.61x book value, Cubical Financial at 0.92x, and Franklin Leasing at 0.37x, all offering better value despite comparable or superior ROE metrics. This suggests Market Creators' current valuation lacks fundamental support and may face downward pressure as operational challenges persist.
Valuation Analysis: Premium Unjustified by Fundamentals
Market Creators' valuation assessment of "VERY EXPENSIVE" reflects a significant disconnect between market pricing and underlying business fundamentals. With the company loss-making on a trailing twelve-month basis, the P/E ratio is not applicable, yet the stock trades at 1.32 times book value—a premium that appears wholly unjustified given persistent operational losses and weak ROE.
The company's valuation grade has fluctuated between "Expensive" and "Very Expensive" since July 2025, with the current "Very Expensive" classification established on August 11, 2025. This assessment reflects not only the absolute valuation metrics but also the deteriorating operational performance that has accelerated since Q1 FY26. The EV/EBITDA multiple of -8.78x is meaningless given negative EBITDA, further highlighting the valuation challenges.
At the current price of ₹13.05, Market Creators trades 25.34% below its 52-week high of ₹17.48 but remains 8.57% above its 52-week low of ₹12.02. The stock's proximity to its annual low suggests market participants are increasingly recognising the fundamental challenges, though further downside appears likely given the operational trajectory. With a market capitalisation of just ₹14.00 crores, the company's micro-cap status limits liquidity and increases volatility risk.
Shareholding: Promoter-Dominated with Zero Institutional Interest
Market Creators' shareholding pattern reveals a heavily promoter-dominated structure with complete absence of institutional participation. Promoters hold 71.32% of the company, a stake that has remained unchanged across the past five quarters through December 2025. The three key promoters—Jayantilal Harkisondas Shah (42.39%), Rashmikant Acharya (26.80%), and Kalpesh J Shah (1.83%)—control the overwhelming majority of shares.
| Category | Dec'25 | Sep'25 | Jun'25 | Mar'25 | QoQ Change |
|---|---|---|---|---|---|
| Promoter | 71.32% | 71.32% | 71.32% | 71.32% | 0.00% |
| FII | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Mutual Funds | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Insurance | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Other DII | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Non-Institutional | 28.68% | 28.68% | 28.68% | 28.68% | 0.00% |
The complete absence of foreign institutional investors, mutual funds, insurance companies, and other domestic institutional investors signals severe red flags regarding corporate governance, financial transparency, and growth prospects. Quality NBFCs typically attract significant institutional participation given sector growth dynamics and regulatory oversight. The lack of any institutional interest in Market Creators reflects deep-seated concerns about the company's viability and management quality.
The static nature of shareholding—with zero changes across all categories for five consecutive quarters—suggests no significant buying or selling activity from any investor class. This stagnation, combined with extremely low trading volumes (just 5 shares traded on January 30, 2026), indicates a largely illiquid stock with minimal market interest. The absence of promoter pledging is a minor positive, though insufficient to offset broader concerns.
Stock Performance: Severe Underperformance Across All Timeframes
Market Creators' stock performance has been dismal across virtually all meaningful timeframes, with particularly acute underperformance in recent periods. The stock declined 12.12% over the past year, generating negative alpha of 19.30 percentage points versus the Sensex's 7.18% gain. This underperformance accelerated in recent months, with the stock falling 15.53% in the past month alone compared to the Sensex's 2.84% decline, resulting in negative alpha of 12.69 percentage points.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | -0.46% | 0.90% | -1.36% |
| 1 Month | -15.53% | -2.84% | -12.69% |
| 3 Months | -10.80% | -2.53% | -8.27% |
| 6 Months | -8.10% | 0.97% | -9.07% |
| YTD | -14.14% | -3.46% | -10.68% |
| 1 Year | -12.12% | 7.18% | -19.30% |
| 2 Years | 17.04% | 15.65% | +1.39% |
| 3 Years | 18.64% | 38.27% | -19.63% |
| 5 Years | 177.66% | 77.74% | +99.92% |
The stock's technical positioning has deteriorated sharply, with the current trend classified as "BEARISH" since January 28, 2026. Market Creators trades below all key moving averages—5-day (₹13.06), 20-day (₹14.04), 50-day (₹14.03), 100-day (₹14.25), and 200-day (₹14.13)—a classic bearish configuration signalling persistent selling pressure. The MACD indicator shows bearish signals on both weekly and monthly timeframes, whilst Bollinger Bands indicate bearish conditions across periods.
The stock's high beta of 1.50 indicates significantly higher volatility than the broader market, with volatility of 64.08% over the past year compared to the Sensex's 11.21%. This extreme volatility, combined with negative returns, results in a negative Sharpe ratio and classification as "HIGH RISK LOW RETURN"—the worst possible risk-return profile for investors. The risk-adjusted return of -0.19 versus the Sensex's 0.64 underscores the value destruction on a risk-adjusted basis.
Investment Thesis: Multiple Red Flags Signal Exit
Market Creators' investment thesis is fundamentally broken across all critical parameters. The company's Mojo Score of 16 out of 100 places it firmly in "STRONG SELL" territory, reflecting the convergence of operational losses, deteriorating financial trends, expensive valuation despite weak fundamentals, below-average quality metrics, and bearish technical momentum.
The company's financial trend is classified as "FLAT" for Q3 FY26, a euphemistic assessment given the persistent operational losses and revenue contraction. The return to marginal profitability in Q3 FY26 does not constitute a turnaround but rather reflects temporary relief from the severe losses of Q2 FY26. The underlying trajectory remains one of deterioration, with core operating losses continuing for four consecutive quarters and no credible path to sustainable profitability visible.
Key Strengths & Risk Factors
Key Strengths
- Return to Profitability: Q3 FY26 posted marginal profit of ₹0.02 crores after two consecutive quarterly losses
- Stable Promoter Holding: Promoters maintain 71.32% stake with no pledging, indicating commitment
- Operational Margin Improvement: Operating margin improved sequentially from -20.66% in Q2 to -7.56% in Q3
- Long Operating History: Company established in 1991 with over three decades of operations
- Listed Status: BSE listing provides regulatory oversight and transparency framework
Key Concerns
- Persistent Operating Losses: Core business unprofitable for four consecutive quarters with -7.56% operating margin in Q3 FY26
- Revenue Collapse: Seven consecutive quarters of YoY revenue decline, down 32.39% YoY in Q3 FY26
- Weak ROE: Average ROE of 1.44% and latest ROE of -4.23% indicate severe capital inefficiency
- Zero Institutional Interest: Complete absence of FII, MF, and insurance holdings signals red flags
- Expensive Valuation: P/BV of 1.32x unjustified given operational losses and weak fundamentals
- Other Income Dependency: Profitability entirely dependent on non-operating income masking core business weakness
- High Volatility: Beta of 1.50 and volatility of 64.08% create "HIGH RISK LOW RETURN" profile
Outlook: What to Watch
Positive Catalysts
- Sustained Operating Profitability: Achievement of positive operating margins for two consecutive quarters
- Revenue Stabilisation: Halt in YoY revenue declines with return to growth trajectory
- ROE Improvement: Consistent quarterly ROE above 10% demonstrating improved capital efficiency
- Institutional Interest: Entry of mutual funds or insurance companies signalling improved confidence
Red Flags
- Return to Quarterly Losses: Any quarter posting net loss would confirm deteriorating trajectory
- Further Revenue Decline: Continued YoY revenue contraction below ₹1.00 crore quarterly
- Margin Deterioration: Operating margins falling back below -10% level
- Promoter Stake Reduction: Any decline in promoter holding below 70% amid operational challenges
- Regulatory Action: Any adverse regulatory findings or restrictions on NBFC operations
The Verdict: Exit Recommended
Score: 16/100
For Fresh Investors: Avoid completely. Market Creators presents a confluence of negative factors including persistent operating losses, collapsing revenues, weak ROE of 1.44%, zero institutional interest, and expensive valuation despite fundamental weakness. The company's inability to generate consistent profits from core operations over multiple quarters, combined with deteriorating financial trends and bearish technical momentum, makes this an uninvestable proposition at current levels.
For Existing Holders: Exit positions at current levels or on any technical bounce. The Q3 FY26 return to marginal profitability does not constitute a turnaround but rather temporary relief in a broader deterioration trajectory. With operating losses persisting for four consecutive quarters, no credible path to sustainable profitability, and valuation trading at a premium to book value despite operational weakness, the risk-reward profile is heavily skewed to the downside. The complete absence of institutional interest and high volatility (64.08%) create additional exit urgency.
Fair Value Estimate: ₹8.00-9.00 (32-38% downside from current ₹13.05), based on 0.8x P/BV multiple appropriate for loss-making micro-cap NBFCs with weak fundamentals and no institutional interest.
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. The views expressed are based on publicly available information and proprietary analysis as of the date of publication. Past performance is not indicative of future results. Investments in securities are subject to market risks, and there is no guarantee of returns.
