Haryana Capfin Ltd Valuation Turns Very Attractive Amid Market Pressure

Valuation Metrics Signal Enhanced Price Appeal

As of 10 Feb 2026, Haryana Capfin’s price-to-earnings (P/E) ratio stands at 15.27, a figure that positions the stock favourably against many of its NBFC peers. This P/E is notably lower than companies such as Mufin Green, which trades at a P/E of 106.65, and Ashika Credit, with an eye-watering 170.16. The company’s price-to-book value (P/BV) ratio has also contracted to 0.25, underscoring a valuation level that is significantly below the sector average and indicative of potential undervaluation.

Enterprise value to EBITDA (EV/EBITDA) and EV to EBIT ratios both sit at 11.51, reflecting a consistent valuation across earnings before interest, taxes, depreciation, and amortisation metrics. These multiples suggest that Haryana Capfin is trading at a discount relative to its earnings power, especially when compared to riskier or loss-making peers such as Avishkar Infra and LKP Finance, which show negative or undefined multiples.

Comparative Industry Context

Within the NBFC sector, Haryana Capfin’s valuation stands out as very attractive, particularly when juxtaposed with companies like Satin Creditcare and SMC Global Securities, which are rated as attractive but trade at higher P/E ratios of 9.09 and 21.14 respectively. Meanwhile, several peers are classified as very expensive, reflecting stretched valuations that may not be justified by their fundamentals.

Despite the low valuation multiples, Haryana Capfin’s return on capital employed (ROCE) and return on equity (ROE) remain modest at 2.16% and 1.63% respectively. These figures highlight ongoing challenges in profitability and capital efficiency, which partly explain the cautious market sentiment and the stock’s recent price weakness.

Price Performance and Market Sentiment

The stock’s current market price is ₹143.95, down from a previous close of ₹156.05, representing a sharp intraday decline of 7.75%. The 52-week trading range spans from ₹137.00 to ₹232.95, indicating significant volatility over the past year. Notably, the stock’s one-year return is -24.24%, underperforming the Sensex’s 7.97% gain over the same period. However, over longer horizons, Haryana Capfin has delivered exceptional returns, with a five-year gain of 379.03% and a ten-year return of 653.66%, far outpacing the Sensex’s respective 63.78% and 249.97% growth.

This divergence between short-term underperformance and long-term outperformance suggests that while the company faces near-term headwinds, its underlying business model and growth prospects have historically rewarded patient investors.

Mojo Score and Rating Update

MarketsMOJO’s latest assessment assigns Haryana Capfin a Mojo Score of 26.0, reflecting a downgrade from a previous Sell rating to a Strong Sell as of 15 Dec 2025. This rating shift underscores the market’s cautious stance on the stock, driven by concerns over profitability metrics and recent price volatility. The company’s market cap grade remains low at 4, signalling its micro-cap status and the associated liquidity and risk considerations.

Despite the Strong Sell grade, the valuation grade has improved from attractive to very attractive, highlighting a disconnect between price and fundamental quality. This divergence may present a contrarian opportunity for investors willing to navigate the risks inherent in the NBFC sector.

Financial Health and Profitability Challenges

Haryana Capfin’s subdued ROCE and ROE ratios point to ongoing operational challenges. The company’s PEG ratio stands at zero, indicating either flat or negative earnings growth expectations, which further tempers enthusiasm. Dividend yield data is not available, suggesting limited returns to shareholders via dividends at present.

These factors contribute to the cautious market sentiment, despite the stock’s compelling valuation multiples. Investors should weigh these profitability concerns against the potential for valuation re-rating should the company improve its earnings trajectory.

Peer Comparison Highlights Valuation Disparities

When compared to peers, Haryana Capfin’s valuation metrics are markedly more attractive. For instance, Mufin Green and Ashika Credit trade at P/E multiples exceeding 100 and 170 respectively, while Satin Creditcare and SMC Global Securities maintain P/E ratios in the 9 to 21 range. Several peers are loss-making, rendering their valuation multiples less meaningful or negative, which contrasts with Haryana Capfin’s positive earnings base.

This relative valuation advantage positions Haryana Capfin as a potential value play within the NBFC sector, particularly for investors seeking exposure to companies with established earnings but currently discounted prices.

Investment Considerations and Outlook

Investors analysing Haryana Capfin must balance the stock’s very attractive valuation against its modest profitability and recent price weakness. The company’s long-term track record of substantial returns over five and ten years suggests resilience and growth potential, but near-term challenges remain evident in earnings and capital efficiency metrics.

Given the downgrade to a Strong Sell rating by MarketsMOJO, cautious investors may prefer to monitor operational improvements and earnings momentum before committing fresh capital. Conversely, value-oriented investors might view the current price levels as an entry point, anticipating a re-rating should the company address its profitability constraints.

Overall, Haryana Capfin’s valuation shift to very attractive signals a noteworthy change in market perception, driven by price declines rather than fundamental improvements. This dynamic creates a nuanced investment case that requires careful analysis of both risks and potential rewards within the NBFC sector context.

Summary of Key Financial Metrics

To recap, Haryana Capfin’s key valuation and financial metrics as of early February 2026 are:

• P/E Ratio: 15.27 (very attractive relative to peers)
• Price to Book Value: 0.25 (significantly undervalued)
• EV/EBITDA and EV/EBIT: 11.51 (consistent earnings multiples)
• ROCE: 2.16% (low capital efficiency)
• ROE: 1.63% (modest shareholder returns)
• PEG Ratio: 0.00 (flat or no earnings growth expected)
• Market Cap Grade: 4 (micro-cap classification)
• Mojo Score: 26.0 with Strong Sell rating

These figures collectively illustrate a stock that is trading at a discount to its sector peers but faces fundamental challenges that justify a cautious stance.

Conclusion

Haryana Capfin Ltd’s recent valuation grade upgrade to very attractive reflects a significant shift in price appeal, driven by a sharp correction in its share price and favourable P/E and P/BV ratios relative to peers. However, the company’s low profitability metrics and a Strong Sell rating from MarketsMOJO temper enthusiasm, signalling that the stock remains a high-risk proposition despite its apparent value.

For investors, the key question is whether Haryana Capfin can translate its valuation advantage into improved operational performance and earnings growth. Until then, the stock’s very attractive price multiples may serve more as a warning signal than a clear buy recommendation.

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