Oasis Securities Ltd Valuation Shifts to Fair Amid Mixed Market Performance

Valuation Metrics and Market Context

As of 17 Feb 2026, Oasis Securities trades at ₹15.38, marking a significant day gain of 9.94% from the previous close of ₹13.99. The stock’s 52-week range spans from ₹11.00 to ₹32.00, indicating considerable volatility over the past year. The company’s current P/E ratio stands at 28.74, a level that has shifted its valuation grade from previously attractive to fair, signalling that the stock is no longer undervalued relative to its earnings.

Complementing this, the P/BV ratio is at 2.02, which, while not excessive, is elevated compared to some of its more attractively valued peers. The enterprise value to EBITDA (EV/EBITDA) ratio is 19.69, suggesting that the market is pricing in a premium for the company’s earnings before interest, taxes, depreciation, and amortisation. This contrasts with companies like Satin Creditcare, which trades at a much lower P/E of 8.72 and EV/EBITDA of 6.05, reflecting a more conservative valuation.

Peer Comparison Highlights Valuation Divergence

Within the NBFC sector, Oasis Securities’ valuation metrics place it in a middle ground. Several peers are classified as very expensive, such as Mufin Green with a P/E of 102.11 and Ashika Credit at a staggering 170.14, while others like SMC Global Securities and Dolat Algotech maintain attractive valuations with P/E ratios below 20. This disparity underscores the varied investor perceptions and risk appetites within the sector.

Notably, some companies like LKP Finance and Avishkar Infra are labelled risky due to loss-making operations, which Oasis Securities currently avoids, maintaining positive returns on capital employed (ROCE) at 8.97% and return on equity (ROE) at 7.01%. These profitability metrics, although modest, provide a foundation for the company’s valuation, justifying a fair rather than an expensive rating.

Stock Performance Versus Market Benchmarks

Oasis Securities’ recent price action has been volatile. Year-to-date, the stock has declined by 16.86%, underperforming the Sensex’s modest 2.28% fall. Over the past year, the stock has suffered a steep 46.10% loss, contrasting sharply with the Sensex’s 9.66% gain. However, the longer-term performance paints a more favourable picture, with Oasis Securities delivering a remarkable 124.53% return over three years and an extraordinary 491.54% over five years, far outpacing the Sensex’s respective 35.81% and 59.83% gains.

This dichotomy suggests that while short-term sentiment has been challenging, the company’s underlying growth story and market positioning have rewarded patient investors over extended periods.

Mojo Score and Rating Update

MarketsMOJO’s proprietary assessment assigns Oasis Securities a Mojo Score of 20.0, categorising it as a Strong Sell. This represents a downgrade from its previous Sell rating on 19 May 2025, reflecting deteriorating fundamentals or heightened risk factors. The Market Cap Grade is 4, indicating a micro-cap status with associated liquidity and volatility considerations.

The downgrade aligns with the shift in valuation grade from attractive to fair, signalling that the stock’s price appreciation has outpaced improvements in earnings or book value, thereby reducing its margin of safety for investors.

Financial Ratios and Profitability Metrics

Oasis Securities’ ROCE of 8.97% and ROE of 7.01% are modest but positive, indicating the company generates reasonable returns on capital and equity. The PEG ratio of 3.27, which adjusts the P/E ratio for earnings growth, suggests the stock is relatively expensive when factoring in growth prospects. This contrasts with peers like Ashika Credit, which, despite a very high P/E, has a PEG of 0.61, implying better growth-adjusted valuation.

Dividend yield data is not available, which may deter income-focused investors. The enterprise value to capital employed ratio of 2.10 and EV to sales of 13.29 further highlight the premium valuation the market places on Oasis Securities relative to its sales and capital base.

Implications for Investors

The transition of Oasis Securities’ valuation from attractive to fair suggests that the stock has become less compelling on a pure valuation basis. Investors should weigh the company’s solid long-term returns and positive profitability against the elevated P/E and PEG ratios, which imply limited upside without significant earnings growth acceleration.

Given the Strong Sell Mojo Grade and the downgrade from Sell, caution is warranted. The stock’s recent price surge may reflect short-term speculative interest rather than fundamental improvement. Comparisons with peers reveal that more attractively valued NBFCs exist, some with stronger growth prospects or better risk profiles.

For investors seeking exposure to the NBFC sector, a thorough analysis of alternative micro-cap and small-cap stocks with more favourable valuation metrics and higher quality grades is advisable before committing capital to Oasis Securities.

Historical Valuation Context

Historically, Oasis Securities traded at lower P/E multiples, which contributed to its attractive valuation grade. The current P/E of 28.74 is elevated relative to its own past averages and the broader NBFC sector median. This shift reflects both the stock’s price appreciation and a more cautious earnings outlook.

Similarly, the P/BV ratio of 2.02, while not extreme, is higher than the levels seen during periods of market pessimism, signalling that investors are pricing in a recovery or growth that has yet to fully materialise in financial results.

Conclusion

Oasis Securities Ltd’s valuation adjustment from attractive to fair is a critical development for investors monitoring the NBFC space. While the company boasts strong long-term returns and reasonable profitability, its current valuation metrics suggest limited margin for error. The downgrade in Mojo Grade to Strong Sell further emphasises the need for prudence.

Investors should consider the broader sector landscape, peer valuations, and the company’s financial health before making investment decisions. The stock’s recent volatility and valuation premium highlight the importance of a disciplined approach in this micro-cap NBFC segment.

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