ARC Finance Limited (ARCFIN.BO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-73.6%

₹0.11

vs ₹0.42 price

Levered DCF

-₹35.71

After debt service

Piotroski score

2 / 9

Weak

Altman Z-score

2.77

Grey zone

Rating

D+

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	11.84×	27.11×	119.25×	74.59×	371.43×	80.18×	5.84×	-6.65×
P/B	0.09×	91.3×	63.54×	0.47×	2.05×	0.29×	0.03×	0.08×
P/S	0.31×	3.85×	3.52×	3.54×	-20.21×	3.49×	3.07×	-1.8×
EV / EBITDA	17.47×	18.88×	57.45×	74.47×	201.32×	47.95×	8.67×	-22.18×
Gross margin	8.1%	26.2%	10.5%	25.9%	103.9%	28.2%	99.2%	102.3%
Operating margin	3.5%	23.3%	3.9%	6.4%	-7.4%	5.9%	52.6%	27.9%
Net margin	2.6%	14.2%	2.9%	4.7%	-5.5%	4.3%	52.5%	27.1%
Current ratio	7.88×	1,995.55×	17.18×	0.52×	2.12×	0.26×	0.01×	0.24×
Debt / equity	0.14×	0.01×	0.31×	0.29×	0.49×	0×	0.02×	0.15×
Interest coverage	0×	443.15×	3,519.34×	0.34×	1.91×	26.25×	69.14×	-12.23×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	0.7%	336.9%	53.0%	0.6%	0.6%	0.4%	0.5%	-1.1%
Return on invested capital	0.7%	400.1%	39.6%	0.5%	0.4%	0.4%	0.5%	-1.0%
Return on assets	0.6%	330.1%	37.9%	0.5%	0.4%	0.3%	0.4%	-0.9%
Free cash flow yield	10.1%	-45.6%	-35.6%	-42.5%	-10.0%	8.2%	-7.4%	-2.6%
Earnings yield	8.4%	3.7%	0.8%	1.3%	0.3%	1.2%	17.1%	-15.1%
Enterprise value	₹221.4M	₹897.7M	₹326.7M	₹383.7M	₹1.3B	₹138.1M	₹24.1M	₹115M
Net debt / EBITDA	10.7×	0×	0.28×	26.95×	36.12×	-2.64×	3.59×	-14.81×
Cash conversion cycle (days)	-4	16	59	-230	-4,870	-417	-528,370	-16,541