Arihant Capital Markets Limited (ARIHANTCAP) AI Stock Analysis

• Market Cap: ₹7.60B
• Dividend Yield: 0.53%
• Average Volume (3M): 50.43K
• Price to Earnings (P/E): 45.9
• Beta (1Y): 1.42
• Revenue Growth: -27.65%
• EPS Growth: -44.96%
• Country: IN
• Employees: 277
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.49
• Shares Outstanding: 109,612,800
• 10 Day Avg. Volume: 34,979
• 30 Day Avg. Volume: 50,431
• PEG Ratio: -0.74
• Price to Book (P/B): 1.89
• Price to Sales (P/S): 5.22
• P/FCF Ratio: 49.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹74.00 ▼(-18.29% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is primarily supported by solid financial fundamentals (revenue growth and strengthening equity), but is held back by operational profitability concerns (negative EBIT), bearish technical signals (below key moving averages with negative MACD), and an expensive valuation (high P/E with a low dividend yield).

Positive Factors

Strengthening equity base

An expanding shareholders' equity base over 2020–2025 materially improves the firm's capital buffer. Strong equity supports regulatory capital for a broker, funds technology and client-facing investments without immediate external financing, and enhances resilience to market stress over the medium term.

Multi-year revenue expansion

A sustained rise in total revenue between 2020 and 2025 indicates the core broking and advisory business can scale client activity and fee income. A larger, diversified revenue base supports potential operating leverage, long-term market share gains and capacity to invest in platform improvements.

Recovering cash generation

Recovery in operating cash flow and a notable improvement in free cash flow suggest the company is improving cash conversion. If sustained, stronger FCF enables reinvestment in technology, funds regulatory requirements internally, lowers refinancing needs and strengthens medium-term financial flexibility.

Negative Factors

Negative operating profitability

A negative EBIT in the most recent year shows core operations did not generate operating profits despite higher revenues. Persistent operating losses limit the firm's ability to self-fund growth, weaken margin sustainability and raise reliance on equity or debt financing to support ongoing operations.

Volatile profits and cash flow

Historic swings in net income and inconsistent operating/free cash flow undermine predictability of funds available for capex, dividends or debt service. This variability increases refinancing and liquidity risk, complicates strategic planning, and raises the hurdle for demonstrating durable, repeatable profitability.

Rising liabilities and leverage risk

Although leverage is currently described as manageable, growing total liabilities and increased debt levels can constrain financial flexibility over time. Higher indebtedness elevates interest burden, limits ability to invest in platforms or M&A, and increases vulnerability to adverse rate or market conditions.

Arihant Capital Markets Limited Business Overview & Revenue Model

Company Description

Arihant Capital Markets Limited, together with its subsidiaries, provides various financial products and services primarily in India. Its products include equities and derivatives broking; commodities and currency broking; mutual funds, IPOs, and NPS services; capital markets, corporate finance, strategic advisory, valuation, and specialized services; general and life insurance; depository services; loans against shares; and portfolio management and advisory services. The company also invests in asset classes and platforms. It serves retail, high net worth individuals, domestic and foreign financial institutions, and corporate clients. The company was incorporated in 1992 and is headquartered in Indore, India.

How the Company Makes Money

Arihant Capital Markets Limited generates revenue through various streams, including brokerage fees from trading activities, management fees from mutual funds and portfolio management services, and advisory fees from wealth management services. The brokerage segment earns income by charging clients a commission on trades executed through its platform, while the wealth management division generates revenue by offering tailored financial solutions and charging fees based on assets under management. Additionally, the company may benefit from strategic partnerships with financial institutions and technology providers, enhancing its service offerings and expanding its client base, which can further contribute to its earnings.

Arihant Capital Markets Limited Financial Statement Overview

Summary

Strong multi-year revenue growth and a solid, expanding equity base support the score, but negative EBIT in 2025 plus fluctuating net income and historically volatile operating/free cash flow reduce confidence in sustained profitability and cash-flow quality.

Income Statement

Arihant Capital Markets Limited has shown robust revenue growth over recent years, with a significant increase in total revenue from 556.9 million in 2020 to 1,392.5 million in 2025. However, profitability metrics like EBIT and Net Profit Margin are concerning, with a negative EBIT in 2025 indicating operational challenges. EBITDA remains strong, suggesting good underlying earnings potential, but net income has seen fluctuations, impacting overall profitability.

Balance Sheet

The company's balance sheet shows moderate stability with a strong equity base, evidenced by an increasing stockholders' equity from 1,496.1 million in 2020 to 3,844.6 million in 2025. The debt-to-equity ratio remains manageable, though total liabilities have also increased. The equity ratio remains healthy, indicating potential for sustainable growth, although rising debt levels could pose future risks.

Cash Flow

The cash flow statement reflects a mixed performance with operating cash flow showing recovery in 2025 after previous deficits. Free cash flow has improved significantly in the latest fiscal year, but historical volatility poses a risk. The company's ability to convert operating profits into cash has been inconsistent, impacting its cash flow stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.14B	1.39B	1.22B	793.62M	968.99M	723.74M
Gross Profit	184.28M	238.10M	223.29M	122.74M	233.15M	198.33M
EBITDA	822.91M	1.00B	1.08B	503.27M	724.64M	484.51M
Net Income	457.42M	587.03M	705.10M	291.18M	503.61M	346.75M
Balance Sheet
Total Assets	9.65B	7.87B	7.80B	5.22B	5.79B	4.61B
Cash, Cash Equivalents and Short-Term Investments	4.25B	4.54B	784.89M	319.97M	759.14M	394.06M
Total Debt	2.11B	956.71M	992.77M	596.75M	823.78M	562.58M
Total Liabilities	5.51B	4.02B	4.58B	2.65B	3.50B	2.79B
Stockholders Equity	4.15B	3.84B	3.23B	2.57B	2.29B	1.82B
Cash Flow
Free Cash Flow	-1.12B	147.59M	-326.90M	104.07M	-180.55M	-324.06M
Operating Cash Flow	-1.04B	315.76M	-296.32M	146.92M	-180.55M	-316.86M
Investing Cash Flow	-60.37M	-209.89M	61.91M	-2.10M	130.45M	-68.06M
Financing Cash Flow	1.10B	-144.06M	273.70M	-318.05M	177.61M	102.09M

Arihant Capital Markets Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 90.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ARIHANTCAP, the sentiment is Negative. The current price of 90.56 is above the 20-day moving average (MA) of 76.19, above the 50-day MA of 80.84, and below the 200-day MA of 92.59, indicating a bearish trend. The MACD of -2.75 indicates Positive momentum. The RSI at 34.35 is Neutral, neither overbought nor oversold. The STOCH value of 9.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ARIHANTCAP.

Arihant Capital Markets Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRIMESECU	74 Outperform	₹9.25B	111.43	―	0.51%	34.10%	-15.20%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CSLFINANCE	66 Neutral	₹5.50B	8.12	―	0.93%	17.32%	13.66%
BIRLAMONEY	63 Neutral	₹6.60B	14.15	―	―	-6.37%	-24.10%
THEINVEST	59 Neutral	₹4.95B	13.06	―	―	-9.21%	-48.40%
ARIHANTCAP	58 Neutral	₹7.60B	45.88	―	0.53%	-27.65%	-44.96%