CSL Finance Limited (CSLFINANCE) AI Stock Analysis

• Market Cap: ₹7.02B
• Dividend Yield: 0.85%
• Average Volume (3M): 1.28K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.32
• Revenue Growth: 21.83%
• EPS Growth: 7.14%
• Country: IN
• Employees: 389
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 9.48
• Shares Outstanding: 22,782,621
• 10 Day Avg. Volume: 1,323
• 30 Day Avg. Volume: 1,285
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹346.00
• Price Target Upside: 11.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ₹346.00 ▲(11.58% Upside)

CSL Finance Limited's overall stock score reflects its strong financial performance characterized by robust revenue growth and profitability. However, negative cash flows and high leverage are significant concerns. The technical analysis indicates bearish momentum, while the valuation suggests the stock is relatively undervalued. Improvements in cash flow management and debt reduction could enhance the company's financial stability and stock performance.

CSL Finance Limited Business Overview & Revenue Model

Company Description

CSL Finance Limited (CSLFINANCE) is a non-banking financial company (NBFC) based in India, primarily focused on providing structured credit products to small and medium enterprises (SMEs) and the real estate sector. The company aims to fulfill the financial needs of underserved segments by offering a range of loan solutions, including secured and unsecured loans tailored to its clients' specific requirements.

How the Company Makes Money

CSL Finance Limited generates revenue by offering various financial products, primarily targeting SMEs and the real estate sector. The company earns interest income from the loans it provides, which forms a significant portion of its revenue stream. Additionally, CSL Finance may charge processing fees and other related charges for their loan services. The company's success in generating revenue is closely tied to its ability to effectively assess borrower creditworthiness, manage risk, and maintain strong relationships with clients and stakeholders. Any significant partnerships with financial institutions or investors could provide additional capital or market reach, potentially enhancing revenue generation, although specific details on such partnerships are not provided.

CSL Finance Limited Financial Statement Overview

Summary

CSL Finance Limited shows strong revenue growth and healthy margins, but high leverage and negative cash flows pose risks. The need for improved cash flow management is evident.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.11B	1.67B	1.15B	721.77M	614.17M
Gross Profit	1.18B	1.61B	741.91M	530.60M	481.92M
EBITDA	1.05B	871.60M	627.41M	455.81M	401.56M
Net Income	720.93M	633.62M	456.28M	334.49M	275.28M
Balance Sheet
Total Assets	12.45B	9.85B	7.79B	5.32B	3.48B
Cash, Cash Equivalents and Short-Term Investments	805.10M	630.27M	459.45M	161.50M	182.05M
Total Debt	6.97B	5.05B	4.10B	2.06B	843.56M
Total Liabilities	7.03B	5.11B	4.16B	2.11B	883.33M
Stockholders Equity	5.42B	4.75B	3.63B	3.21B	2.59B
Cash Flow
Free Cash Flow	-1.74B	-1.29B	-1.69B	-1.62B	219.74M
Operating Cash Flow	-1.72B	-1.27B	-1.67B	-1.58B	222.44M
Investing Cash Flow	-16.09M	-18.06M	-21.31M	-34.99M	-2.29M
Financing Cash Flow	1.84B	1.43B	1.96B	1.57B	-165.46M

CSL Finance Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 310.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 310.1 is below the 20-day moving average (MA) of 311.03, below the 50-day MA of 325.49, and above the 200-day MA of 305.99, indicating a bearish trend. The MACD of -7.50 indicates Positive momentum. The RSI at 34.69 is Neutral, neither overbought nor oversold. The STOCH value of 74.49 is Neutral, 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	$17.48B	11.72	10.44%	3.82%	10.01%	1.29%
CSLFINANCE	68 Neutral	₹7.02B	9.73		0.85%	21.83%	7.14%
MUFIN	66 Neutral	₹14.83B	73.14		―	108.09%	39.44%
TRU	46 Neutral	₹1.45B	13.14		0.08%	9.14%	-639.84%
YAARI	39 Underperform	₹1.71B	―		―	―	-202.50%

CSL Finance Limited Corporate Events

CSL Finance Limited Announces Key Management Change

CSL Finance Limited has announced the resignation of Mr. Atul Kumar Agrawal from his role as Chief Compliance Officer, effective June 23, 2025. He will continue to serve as President-Finance & Treasury. Ms. Preeti Gupta, currently the Company Secretary & Compliance Officer, will assume the role of Chief Compliance Officer, leveraging her expertise and familiarity with NBFC regulatory frameworks. This change aligns with the company’s compliance with RBI regulations and statutory requirements.