The sharp sequential decline in Q2 FY26 follows an already volatile pattern established in Q1 FY26, when revenue had surged 280.00% quarter-on-quarter to ₹3.23 crores. This extreme volatility in quarterly revenue—ranging from ₹0.85 crores in Q4 FY25 to ₹37.68 crores in Q3 FY24—raises fundamental questions about the company's business model consistency and revenue visibility. Year-on-year comparisons paint an equally concerning picture, with Q2 FY26 revenue down 94.83% compared to ₹30.18 crores in Q2 FY25.
The company's minimal promoter holding of just 1.78% and negligible institutional participation (0.04% DII holdings, zero FII or mutual fund presence) underscore the lack of confidence from sophisticated investors. With 98.19% of shares held by non-institutional investors, Yamini Investment operates with virtually no institutional oversight or support—a significant red flag for a financial services company.
| Quarter | Net Sales (₹ Cr) | QoQ Change | Net Profit (₹ Cr) | QoQ Change | PAT Margin |
|---|---|---|---|---|---|
| Sep'25 (Q2 FY26) | 1.56 | -51.70% | 0.30 | -76.47% | 19.23% |
| Jun'25 (Q1 FY26) | 3.23 | +280.00% | 0.17 | +105.84% | 5.26% |
| Mar'25 (Q4 FY25) | 0.85 | -97.74% | -2.91 | -266.29% | -342.35% |
| Dec'24 (Q3 FY25) | 37.68 | +24.85% | 1.75 | -27.08% | 4.64% |
| Sep'24 (Q2 FY25) | 30.18 | +1195.28% | 2.40 | +105.13% | 7.95% |
| Jun'24 (Q1 FY25) | 2.33 | -45.94% | 1.17 | +588.24% | 50.21% |
| Mar'24 (Q4 FY24) | 4.31 | — | 0.17 | — | 3.94% |
Financial Performance: Margins Improve But Revenue Base Collapses
In Q2 FY26, Yamini Investment posted net sales of ₹1.56 crores, down 51.70% from ₹3.23 crores in Q1 FY26 and down a staggering 94.83% year-on-year from ₹30.18 crores in Q2 FY25. Net profit stood at ₹0.30 crores, representing a 76.47% sequential decline from ₹0.17 crores in the previous quarter, though it managed to remain positive after the company reported a loss of ₹2.91 crores in Q4 FY25.
Paradoxically, profitability margins improved significantly in Q2 FY26. The operating margin (excluding other income) expanded to 26.28% from 8.36% in Q1 FY26, whilst PAT margin jumped to 19.23% from 5.26%. However, this margin expansion provides little comfort given the precipitous decline in the revenue base. Operating profit (PBDIT excluding other income) stood at ₹0.41 crores in Q2 FY26, up from ₹0.27 crores in Q1 FY26 but down 87.38% from ₹3.25 crores in Q2 FY25.
The company's cost structure remains minimal, with employee costs of just ₹0.06 crores in Q2 FY26 and negligible interest and depreciation expenses. Tax rate remained consistent at 26.83% in Q2 FY26, in line with the 26.09% rate in Q1 FY26. The absence of other income in recent quarters suggests the company is entirely dependent on its core investment activities, which have proven highly erratic.
Business Model Concerns: Extreme Volatility Signals Structural Issues
The most alarming aspect of Yamini Investment's performance is the extreme quarterly revenue volatility that defies normal business patterns. The company's net sales have swung wildly from a high of ₹37.68 crores in Q3 FY25 to just ₹0.85 crores in Q4 FY25, then recovering to ₹3.23 crores in Q1 FY26 before falling again to ₹1.56 crores in Q2 FY26. Such erratic performance suggests the company may be dependent on one-off transactions or lumpy deal flows rather than operating a sustainable, recurring revenue business model.
The company's return on equity of just 0.66% is exceptionally weak, ranking amongst the poorest in the NBFC sector. This dismal ROE indicates that Yamini Investment is generating minimal returns on shareholders' capital, with the company essentially destroying value rather than creating it. For context, well-managed NBFCs typically deliver ROE in the range of 12-18%, making Yamini's 0.66% ROE a critical concern.
Balance sheet data reveals shareholder funds of ₹69.15 crores as of March 2025, up marginally from ₹67.70 crores in March 2024. The company operates with zero long-term debt, which whilst indicating no leverage risk, also suggests limited ability to scale operations. Current assets stood at ₹50.28 crores against current liabilities of ₹22.73 crores, providing adequate short-term liquidity. However, the absence of fixed assets and investments raises questions about the nature of the company's business activities.
Critical Business Model Concerns
Extreme Revenue Volatility: Quarterly sales ranging from ₹0.85 crores to ₹37.68 crores over the past year suggests dependence on irregular, one-off transactions rather than sustainable recurring revenue streams.
Minimal ROE: Return on equity of 0.66% is exceptionally weak, indicating the company is barely generating any returns on shareholder capital.
Zero Institutional Support: With just 1.78% promoter holding and 0.04% institutional holdings, the company operates without credible backing from sophisticated investors.
Peer Comparison: Significantly Underperforming Sector Standards
When compared to peers in the NBFC sector, Yamini Investment's metrics highlight its inferior positioning. The company's ROE of 0.66% is dramatically lower than sector peers such as SKP Securities (17.20% ROE) and B N Rathi Securities (15.14% ROE). Even amongst smaller NBFCs, Yamini's profitability metrics appear weak, with Pioneer Investcorp delivering 2.55% ROE and J A Finance achieving 2.61% ROE—both significantly higher than Yamini's 0.66%.
Valuation-wise, Yamini Investment trades at a P/E ratio of 169.69x, extraordinarily elevated compared to the sector average of approximately 23x. This premium valuation appears entirely unjustified given the company's weak fundamentals, erratic earnings, and minimal institutional support. The company's price-to-book value of 1.10x is lower than peers like SKP Securities (1.46x) and J A Finance (3.68x), but this modest P/BV multiple offers little comfort given the company's inability to generate meaningful returns on that book value.
| Company | P/E (TTM) | P/BV | ROE (%) | Debt/Equity | Div Yield |
|---|---|---|---|---|---|
| Yamini Investment | 169.69x | 1.10x | 0.66% | 0.28x | — |
| SKP Securities | 9.35x | 1.46x | 17.20% | 0.35x | 1.69% |
| B N Rathi Securities | 13.26x | 1.03x | 15.14% | 0.00x | 2.75% |
| J A Finance | NA (Loss Making) | 3.68x | 2.61% | 0.69x | — |
| Pioneer Investcorp | 11.49x | 0.61x | 2.55% | 0.93x | — |
| VIRAT Leasing | 115.90x | — | — | — | — |
The comparison reveals Yamini Investment as a significant underperformer across key metrics. Its ROE of 0.66% is the lowest in the peer group, whilst its P/E multiple of 169.69x is the highest amongst profitable peers (excluding VIRAT Leasing at 115.90x). This combination of weak profitability and elevated valuation presents an unfavourable risk-reward profile for investors.
Valuation Analysis: Premium Multiples Unjustified by Fundamentals
Yamini Investment's current valuation appears disconnected from its operational reality. Trading at a P/E ratio of 169.69x versus the NBFC sector average of 23x represents a valuation premium of over 630%, which is entirely unsupported by the company's fundamentals. The company's weak ROE of 0.66%, erratic revenue patterns, and minimal scale provide no justification for such elevated multiples.
The stock's price-to-book value of 1.10x, whilst appearing modest in absolute terms, still represents a premium to book value despite the company's inability to generate adequate returns on equity. Given the 0.66% ROE, a P/BV multiple below 1.0x would be more appropriate, suggesting the stock is overvalued even on book value metrics. The company's EV/EBITDA multiple of 57.88x and EV/Sales ratio of 1.96x further confirm the stretched valuation.
The stock has been classified as "Very Expensive" by valuation grade assessments since August 2025, having oscillated between "Fair," "Expensive," and "Very Expensive" ratings throughout the year. The current "Very Expensive" designation accurately reflects the disconnect between valuation and fundamentals. With the stock trading at ₹0.83, down 60.66% from its 52-week high of ₹2.11 but still 2.47% above its 52-week low of ₹0.81, the valuation offers minimal margin of safety.
Shareholding Pattern: Lack of Institutional Confidence
The shareholding pattern of Yamini Investment reveals a concerning lack of institutional participation and minimal promoter commitment. Promoter holding has remained static at 1.78% for the past five quarters through September 2025, with key promoters including Madhur Buildcon Private Limited (1.70%), Vandana Agarwal (0.05%), and Surbhi Infraproject Private Limited (0.02%). This minimal promoter stake of less than 2% is highly unusual for an Indian company and raises governance concerns.
Institutional participation is virtually non-existent, with zero holdings from foreign institutional investors (FIIs), mutual funds, and insurance companies. Other domestic institutional investors (DIIs) hold a negligible 0.04%, unchanged across all five quarters. The remaining 98.19% of shares are held by non-institutional investors, predominantly retail shareholders. This ownership structure provides no institutional oversight or quality assurance typically associated with professional investor participation.
| Category | Sep'25 | Jun'25 | Mar'25 | Dec'24 | Sep'24 |
|---|---|---|---|---|---|
| Promoter | 1.78% | 1.78% | 1.78% | 1.78% | 1.78% |
| 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 | 0.04% | 0.04% | 0.04% | 0.04% | 0.04% |
| Non-Institutional | 98.19% | 98.19% | 98.19% | 98.19% | 98.19% |
The complete absence of shareholding changes across quarters indicates a stagnant shareholder base with no fresh institutional interest. For a financial services company, the lack of institutional investors—who typically conduct rigorous due diligence—represents a significant red flag about the company's business quality and governance standards.
Stock Performance: Sustained Underperformance Across Timeframes
Yamini Investment's stock performance has been dismal across most timeframes, with the stock declining 46.72% over the past year compared to the Sensex's 9.00% gain—resulting in negative alpha of 55.72 percentage points. The stock currently trades at ₹0.83, down 1.19% on November 14, 2025, and has consistently traded below all key moving averages including the 5-day (₹0.84), 20-day (₹0.85), 50-day (₹0.90), 100-day (₹0.99), and 200-day (₹1.34) moving averages.
Recent performance has been particularly weak, with the stock down 3.49% over the past month versus the Sensex's 3.09% gain (alpha: -6.58 percentage points), and down 17.00% over three months versus the Sensex's 4.92% gain (alpha: -21.92 percentage points). The six-month performance shows a 47.13% decline versus the Sensex's 3.97% gain, whilst year-to-date returns stand at -45.38% versus the Sensex's 8.22% gain.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Day | -1.19% | +0.10% | -1.29% |
| 1 Week | -1.19% | +1.62% | -2.81% |
| 1 Month | -3.49% | +3.09% | -6.58% |
| 3 Months | -17.00% | +4.92% | -21.92% |
| 6 Months | -47.13% | +3.97% | -51.10% |
| YTD | -45.38% | +8.22% | -53.60% |
| 1 Year | -46.72% | +9.00% | -55.72% |
| 2 Years | +23.08% | +30.23% | -7.15% |
| 3 Years | +2.81% | +37.22% | -34.41% |
| 5 Years | +223.65% | +93.78% | +129.87% |
Compared to the NBFC sector's one-year return of 25.11%, Yamini Investment has underperformed by a massive 71.83 percentage points. The stock's beta of 1.50 indicates high volatility, with the stock being 50% more volatile than the broader market. Combined with negative returns, this high volatility places the stock in the "HIGH RISK LOW RETURN" category—the worst possible risk-return profile.
Technical indicators paint a uniformly bearish picture. The stock entered a bearish trend on November 4, 2025, at ₹0.85, having previously been in a mildly bearish trend. Weekly MACD shows mildly bullish signals, but monthly MACD, Bollinger Bands, and Dow Theory all flash bearish indicators. The stock trades near its 52-week low of ₹0.81, providing minimal downside cushion whilst facing significant resistance at the ₹0.85 level (20-day moving average area) and major resistance at ₹0.99 (100-day moving average).
Investment Thesis: Multiple Red Flags Overwhelm Limited Positives
The investment thesis for Yamini Investment Company is overwhelmingly negative, with multiple structural concerns outweighing any potential positives. The company's proprietary score of 7 out of 100 and "STRONG SELL" advisory rating accurately reflect the poor fundamentals and unfavourable risk-reward profile. The Mojo 4 Dots analysis reveals negative near-term drivers (bearish technicals and negative financial trend), below-average quality, very expensive valuation, and an overall cautious assessment.
The company's quality grade of "Below Average" is based on weak long-term financial performance, with an average ROE of just 0.66% despite healthy 5-year sales growth of 78.02%. The financial trend turned negative in September 2025, driven by a 84.68% decline in net sales and PAT on a nine-month basis. Technical trends remain bearish, with the stock trading below all major moving averages and showing sustained downward momentum.
"With extreme revenue volatility, minimal ROE of 0.66%, virtually zero institutional support, and valuation multiples disconnected from fundamentals, Yamini Investment presents an unfavourable risk-reward profile that justifies the Strong Sell rating."
Key Strengths & Risk Factors
KEY STRENGTHS ✓
- Zero Debt Structure: Company operates with no long-term debt, eliminating leverage risk and financial stress.
- Adequate Liquidity: Current assets of ₹50.28 crores against current liabilities of ₹22.73 crores provide comfortable short-term liquidity.
- Long Operating History: Incorporated in 1983, the company has four decades of existence in the financial services sector.
- Recent Margin Improvement: Operating margin expanded to 26.28% in Q2 FY26 from 8.36% in Q1 FY26, showing some operational efficiency gains.
- Positive 5-Year Returns: Despite recent weakness, the stock has delivered 223.65% returns over five years, outperforming the Sensex's 93.78% gain by 129.87 percentage points.
KEY CONCERNS ⚠
- Extreme Revenue Volatility: Quarterly sales swinging from ₹0.85 crores to ₹37.68 crores suggests unsustainable, lumpy transaction-based model.
- Minimal ROE: Return on equity of 0.66% is exceptionally weak, indicating the company barely generates returns on shareholder capital.
- Negligible Promoter Holding: Promoter stake of just 1.78% raises serious governance concerns and indicates lack of skin in the game.
- Zero Institutional Participation: No FII, mutual fund, or insurance company holdings suggests sophisticated investors have no confidence in the business.
- Elevated Valuation: P/E of 169.69x versus sector average of 23x represents unjustified premium given weak fundamentals.
- Sustained Stock Underperformance: Down 46.72% over one year with negative alpha of 55.72 percentage points versus Sensex.
- Bearish Technical Trend: Stock trading below all moving averages with bearish indicators across multiple timeframes.
Outlook: What to Watch
POSITIVE CATALYSTS ↑
- Sustained revenue stabilisation above ₹5 crores per quarter for at least three consecutive quarters
- Improvement in ROE to double-digit levels (above 10%) indicating better capital efficiency
- Meaningful increase in promoter holding above 25% demonstrating management confidence
- Entry of institutional investors (FIIs or mutual funds) bringing credibility and governance oversight
- Clear articulation of business model and revenue visibility in investor communications
RED FLAGS ⚠
- Further decline in quarterly revenue below ₹1 crore indicating business model failure
- Return to quarterly losses similar to Q4 FY25's ₹2.91 crore loss
- Any reduction in already minimal promoter holding below current 1.78% level
- Increase in current liabilities without corresponding revenue growth indicating working capital stress
- Continued absence of institutional investor interest despite valuation correction
- Stock breaking below 52-week low of ₹0.81 with no technical support visible
The Verdict: Avoid This High-Risk, Low-Return Proposition
Score: 7/100
For Fresh Investors: Avoid initiating any position. The combination of extreme revenue volatility, minimal ROE of 0.66%, virtually zero institutional support, and elevated valuation multiples presents an unfavourable risk-reward profile. The company's business model lacks sustainability and visibility.
For Existing Holders: Strongly consider exiting positions. The stock has declined 46.72% over the past year and continues to trade in a bearish trend with no signs of stabilisation. The minimal promoter holding of 1.78% and complete absence of institutional investors raise serious governance concerns. Recent quarterly results show continued revenue pressure despite margin improvement on a smaller base.
Fair Value Estimate: ₹0.60 (27.71% downside from current price of ₹0.83). Given the 0.66% ROE and erratic earnings pattern, even the current price-to-book multiple of 1.10x appears generous. A P/BV multiple of 0.50-0.60x would be more appropriate, suggesting a fair value range of ₹0.59-₹0.71 per share.
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. Past performance is not indicative of future results. Investments in equity markets are subject to market risks, and investors may lose part or all of their capital.
