Global Capital Markets Ltd Valuation Shifts to Very Attractive Amid Mixed Returns

Valuation Metrics Reflect Renewed Investor Interest

Global Capital Markets Ltd currently trades at a price of ₹0.56, up from the previous close of ₹0.53, marking a notable intraday high of ₹0.58. The stock’s 52-week range spans from ₹0.50 to ₹0.99, indicating considerable volatility over the past year. The company’s price-to-earnings (P/E) ratio stands at 18.74, a figure that has contributed to its upgraded valuation grade from risky to very attractive as of 10 Feb 2026.

In the context of the NBFC sector, this P/E ratio is relatively moderate. For instance, peers such as Mufin Green and Ashika Credit exhibit P/E ratios of 109.34 and 172.38 respectively, categorising them as very expensive. Meanwhile, Satin Creditcare and Dolat Algotech, with P/E ratios of 9.01 and 11.48, are considered attractive but trade at lower multiples than Global Capital Markets.

The company’s price-to-book value (P/BV) ratio is particularly compelling at 0.48, signalling that the stock is trading at less than half its book value. This is a stark contrast to many peers in the NBFC space, where valuations often exceed book values, reflecting investor caution or premium pricing for growth prospects. The low P/BV ratio suggests that the market currently undervalues the company’s net assets, potentially offering a margin of safety for value-oriented investors.

Enterprise Value Multiples and Profitability Indicators

Examining enterprise value (EV) multiples, Global Capital Markets Ltd posts an EV to EBIT of 17.85 and EV to EBITDA of 17.27. These multiples are higher than some peers like Satin Creditcare (EV/EBITDA of 6.09) but lower than others such as Ashika Credit (EV/EBITDA of 96.4), indicating a middle ground valuation within the sector. The EV to capital employed ratio is notably low at 0.47, reinforcing the notion of undervaluation relative to the company’s capital base.

However, profitability metrics remain a concern. The company’s return on capital employed (ROCE) is negative at -2.40%, while return on equity (ROE) is modestly positive at 2.56%. These figures highlight ongoing challenges in generating efficient returns, which may temper enthusiasm despite the attractive valuation multiples.

Stock Performance Versus Market Benchmarks

Global Capital Markets Ltd’s recent price action has outpaced the broader market in the short term, with a one-week return of 7.69% compared to the Sensex’s 0.64%. However, over longer horizons, the stock has underperformed significantly. Year-to-date, the stock is down 8.20% while the Sensex has declined by 1.11%. Over one year, the stock has plunged 31.71% against a 9.01% gain in the Sensex, and over three years, it has fallen 70.79% while the benchmark index rose 38.88%.

Despite this, the five-year return of 256.36% far exceeds the Sensex’s 64.25%, suggesting that the company has delivered substantial gains over a longer investment horizon. The ten-year return of 48.73%, however, lags the Sensex’s 254.70%, indicating that more recent years have weighed on cumulative performance.

Mojo Score and Rating Upgrade

MarketsMOJO assigns Global Capital Markets Ltd a Mojo Score of 32.0, reflecting a cautious stance on the stock’s overall quality and outlook. The Mojo Grade has been upgraded from Strong Sell to Sell as of 10 Feb 2026, signalling a slight improvement in the company’s risk profile and valuation appeal. The market capitalisation grade remains low at 4, indicating a relatively small market cap that may contribute to liquidity concerns and higher volatility.

The upgrade in valuation grade from risky to very attractive is a key highlight, suggesting that the stock’s current price levels offer a compelling entry point for investors willing to tolerate the company’s operational challenges. The PEG ratio of 0.06 further supports the notion of undervaluation relative to expected earnings growth, although the absence of dividend yield limits income appeal.

Peer Comparison Highlights Relative Value

When compared with peers, Global Capital Markets Ltd stands out for its very attractive valuation despite modest profitability. Companies such as Mufin Green, Ashika Credit, and Finkurve Finance trade at significantly higher P/E and EV multiples, reflecting investor preference for growth or better financial health. Conversely, some peers like Avishkar Infra and LKP Finance are loss-making, making Global Capital Markets’ positive albeit low ROE comparatively more favourable.

This valuation repositioning may attract value investors seeking exposure to the NBFC sector at a discount, particularly if the company can improve its operational metrics and capital efficiency over time.

Investment Outlook and Considerations

Global Capital Markets Ltd’s recent valuation upgrade reflects a market reassessment of its price attractiveness amid subdued profitability and sector headwinds. The stock’s low P/BV ratio and moderate P/E multiple relative to peers suggest that investors are pricing in potential recovery or turnaround prospects. However, the negative ROCE and modest ROE highlight the need for operational improvements to justify higher valuations sustainably.

Investors should weigh the company’s attractive valuation against its historical underperformance and sector risks. The stock’s significant underperformance over one and three years relative to the Sensex underscores the challenges faced. Yet, the strong five-year return indicates that patient investors have been rewarded in the past, provided they can tolerate volatility.

Given the current market environment and the company’s financial profile, Global Capital Markets Ltd may appeal to value-focused investors with a long-term horizon who are comfortable with the NBFC sector’s cyclical nature and regulatory complexities.

Conclusion

The shift in Global Capital Markets Ltd’s valuation from risky to very attractive marks a pivotal moment for the stock. While profitability metrics remain subdued, the favourable price multiples relative to peers and book value present a compelling case for re-evaluation by investors. The recent Mojo Grade upgrade to Sell from Strong Sell further supports a cautiously optimistic stance. Ultimately, the stock’s future trajectory will depend on its ability to enhance returns and capital efficiency amid a competitive NBFC landscape.

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