CSL Finance Limited (CSLFINANCE) AI Stock Analysis

• Market Cap: ₹5.79B
• Dividend Yield: 0.93%
• Average Volume (3M): 1.40K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 1.13
• Revenue Growth: 17.32%
• EPS Growth: 13.66%
• Country: IN
• Employees: 389
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 9.30
• Shares Outstanding: 22,782,621
• 10 Day Avg. Volume: 1,789
• 30 Day Avg. Volume: 1,403
• PEG Ratio: 0.78
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 2.86
• P/FCF Ratio: -3.46
• 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: 66 Neutral
• Price Target: ₹270.00 ▼(-9.20% Downside)
• Action: Reiterated Date: 11/15/25
• Date: Action: Reiterated 11/15/25

CSL Finance Limited's strong financial performance, characterized by robust revenue growth and profitability, is a key strength. However, high leverage and negative cash flows are significant risks. The technical analysis indicates a mixed outlook with short-term upward trends but potential bearish momentum. The stock's low P/E ratio suggests it may be undervalued, providing a potential opportunity for investors.

Positive Factors

Revenue growth

Sustained double-digit top-line growth and reported year-over-year revenue expansion indicate expanding loan originations or higher yields. This durable growth supports scale economies, broadens customer reach, and underpins long-term earnings potential for an NBFC.

Profitability & margins

Consistently healthy gross and EBIT margins provide a structural buffer against credit costs and rising funding expenses. Stable operating profitability enhances reinvestment capacity and the ability to absorb cyclical stresses in lending markets over multiple quarters.

Equity base and ROE

A reasonable equity ratio and positive ROE signal a tangible capital base and effective use of shareholders' funds. For an NBFC this strengthens loss-absorbing capacity, supports regulatory compliance and enables continued lending growth without immediate equity raises.

Negative Factors

High leverage

Material leverage increases refinancing and liquidity risk for a finance firm. High debt levels amplify sensitivity to interest rate moves and funding spreads, constrain strategic flexibility, and can force deleveraging or costly capital raises during stress periods.

Negative operating cash flow

Persistent negative operating and free cash flows mean the business is not generating cash from core lending operations at scale. This creates long-term funding dependence on external borrowing, raising rollover risk and making growth reliant on market access.

Cash conversion quality

When accounting profits outpace cash conversion, earnings quality is weaker and retained earnings may not translate into liquidity. This limits capacity for dividends, loan book growth, or reserve build without additional funding, increasing vulnerability if markets tighten.

CSL Finance Limited Business Overview & Revenue Model

Company Description

CSL Finance Limited, a non-banking financial company, engages in the wholesale and SME retail lending businesses in India. It offers loans for real estate developers, such as loans against property and securities; loan for small builders, including construction finance, and refinance and inventory funding; corporate loans; and loans for education, medical, agriculture, and FMCG trading industries, as well as Salaried professionals. The company was formerly known as Consolidated Securities Limited and changed its name to CSL Finance Limited in January 2016. CSL Finance Limited was incorporated in 1992 and is based in Noida, India.

How the Company Makes Money

CSL Finance generates revenue primarily through the interest earned on loans provided to customers. The company charges interest rates that vary based on the type of loan, borrower creditworthiness, and market conditions. Additionally, CSL Finance may earn fees from loan origination, processing, and late payment penalties. The company might also generate income from partnerships with other financial institutions for referral business or co-branded lending products. Other factors contributing to its earnings include effective risk management strategies that minimize defaults and the expansion of its product offerings to capture a broader market share.

CSL Finance Limited Financial Statement Overview

Summary

CSL Finance Limited demonstrates robust revenue growth and profitability on the income statement, with strong gross and EBIT margins. However, high leverage and negative cash flows present potential risks. The company's financial health is stable but could benefit from improved cash flow management and reduced reliance on debt.

Income Statement

CSL Finance Limited has shown strong revenue growth over the years, with a notable increase of 26.6% from 2024 to 2025. The company's gross profit margin has remained healthy, contributing to stable EBIT and EBITDA margins. However, the net profit margin shows some room for improvement despite the overall positive trends.

Balance Sheet

The balance sheet indicates a relatively high debt-to-equity ratio, suggesting significant leverage, which poses potential risks. However, the company has maintained a reasonable equity ratio, indicating a solid base of stockholders' equity compared to total assets. The return on equity is positive, reflecting effective use of equity to generate profits.

Cash Flow

CSL Finance Limited faces challenges in cash flow management, as evidenced by negative operating and free cash flows in recent years. Although the company has managed to maintain financing cash flows, the free cash flow to net income ratio is concerning, indicating that the company's cash generation is not keeping pace with its accounting profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.18B	2.10B	1.63B	1.15B	721.77M	614.17M
Gross Profit	1.25B	1.22B	1.02B	741.91M	530.60M	481.92M
EBITDA	1.00B	988.52M	871.60M	627.41M	455.81M	401.56M
Net Income	749.22M	720.93M	633.62M	456.28M	334.49M	275.28M
Balance Sheet
Total Assets	0.00	12.45B	9.85B	7.79B	5.32B	3.48B
Cash, Cash Equivalents and Short-Term Investments	805.10M	805.10M	630.27M	456.71M	161.50M	178.22M
Total Debt	0.00	6.97B	5.05B	4.10B	2.06B	843.56M
Total Liabilities	-5.42B	7.03B	5.11B	4.16B	2.11B	883.33M
Stockholders Equity	5.42B	5.42B	4.75B	3.63B	3.21B	2.59B
Cash Flow
Free Cash Flow	0.00	-1.74B	-1.29B	-1.69B	-1.62B	219.74M
Operating Cash Flow	0.00	-1.72B	-1.27B	-1.67B	-1.58B	222.44M
Investing Cash Flow	0.00	-16.09M	-18.06M	-21.31M	-34.99M	-2.29M
Financing Cash Flow	0.00	1.84B	1.43B	1.96B	1.57B	-165.46M

CSL Finance Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 297.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CSLFINANCE, the sentiment is Negative. The current price of 297.35 is above the 20-day moving average (MA) of 260.77, above the 50-day MA of 280.43, and above the 200-day MA of 296.55, indicating a bearish trend. The MACD of -3.57 indicates Negative momentum. The RSI at 42.18 is Neutral, neither overbought nor oversold. The STOCH value of 84.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CSLFINANCE.

CSL Finance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MUFIN	66 Neutral	₹18.51B	71.53	―	―	40.11%	-5.31%
CSLFINANCE	66 Neutral	₹5.79B	8.12	―	0.93%	17.32%	13.66%
TRU	44 Neutral	₹739.32M	-0.53	―	0.12%	-26.94%	-1105.24%
MUTHOOTCAP	43 Neutral	₹3.74B	14.73	―	―	40.61%	-64.65%
CAPTRUST	38 Underperform	₹578.35M	-3.45	―	―	-26.63%	-1320.85%

CSL Finance Limited Corporate Events

CSL Finance Opens One-Year Special Window to Dematerialise Old Physical Shares

CSL Finance Limited has notified exchanges and shareholders that it has opened a special window, from 5 February 2026 to 4 February 2027, for the transfer and dematerialisation of physical securities that were bought or sold before 1 April 2014. Under the SEBI-mandated framework, any shares re-lodged for transfer during this period will be issued only in demat form, and the company has publicised the initiative through newspaper notices and official social media channels to ensure wider shareholder compliance and smoother transition away from physical share certificates.