CSL Finance Limited (CSLFINANCE) AI Stock Analysis

CSL Finance Limited

(NSE:CSLFINANCE)

Select Model

Rating:72Outperform

Price Target:INR 256.00▲(17.19% Upside)

Action:reiterated

Date:08/27/26

The overall score reflects a profitable, fast-growing lender with expanding assets and acceptable capital support, offset by elevated leverage and a historically weak cash flow profile that only recently turned strongly positive. The attractive valuation, with a very low earnings multiple and modest dividend yield, provides a significant cushion for investors, while current technicals show constructive upward momentum with moderate volatility but not an extreme, overbought trend.

Positive Factors

Sustained Revenue and Profit GrowthStrong multi-year growth indicates expanding lending activity and earning capacity. Rising revenue and net income provide a durable foundation for scale, although future performance will depend on maintaining credit quality and funding discipline.

Negative Factors

Materially Higher LeverageDebt has increased much faster than the earlier capital base, creating a more aggressive funding structure. Higher leverage can raise funding sensitivity and reduce financial flexibility if credit conditions tighten or loan losses increase.

CSL Finance Limited (CSLFINANCE) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 4.94B
Dividend Yield: 1.37%
Average Volume (3M): 3,841
Price to Earnings (P/E): 5.7
Beta (1Y): 0.95
Revenue Growth: 19.69%
EPS Growth: 15.92%
Country: India
Employees: 507
Sector: General
Sector Strength: 55
Industry: Financial - Credit Services

CSL Finance Limited Business Overview & Revenue Model

Company Description

CSL Finance Limited is an Indian non-banking financial institution primarily engaged in providing wholesale credit and retail lending services, with a specific focus on small and medium-sized enterprises (SMEs). The company offers a diverse range of...

How the Company Makes Money

CSL Finance Limited primarily makes money through its lending and financing operations as an NBFC. Key revenue typically comes from (1) interest income earned on loans and financing extended to customers, where the company’s lending rate exceeds its...

CSL Finance Limited Financial Statement Overview

Summary

Revenue and net income have grown strongly with healthy margins and mid-teens ROE, but rising leverage and a history of weak, volatile cash generation until the latest year materially temper the financial strength.

Income Statement

78Positive

Balance Sheet

74Positive

Cash Flow

40Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	2.63B	2.53B	2.10B	1.63B	1.15B	721.77M
Gross Profit	1.62B	1.64B	1.22B	1.02B	741.91M	530.60M
EBITDA	1.16B	1.14B	988.52M	871.60M	627.41M	455.81M
Net Income	869.40M	861.10M	720.93M	633.62M	456.28M	334.49M
Balance Sheet
Total Assets	0	14.88B	12.45B	9.85B	7.79B	5.32B
Cash, Cash Equivalents and Short-Term Investments	926.89M	926.89M	805.10M	630.27M	456.71M	161.50M
Total Debt	0	8.56B	6.97B	5.05B	4.10B	2.06B
Total Liabilities	-6.22B	8.66B	7.03B	5.11B	4.16B	2.11B
Stockholders Equity	6.22B	6.22B	5.42B	4.75B	3.63B	3.21B
Cash Flow
Free Cash Flow	-482.76M	967.30M	-1.74B	-1.29B	-1.69B	-1.62B
Operating Cash Flow	-470.82M	984.65M	-1.72B	-1.27B	-1.67B	-1.58B
Investing Cash Flow	-11.11M	-2.38B	-16.09M	-18.06M	-21.31M	-34.99M
Financing Cash Flow	559.59M	1.52B	1.84B	1.43B	1.96B	1.57B

CSL Finance Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price218.45

Price Trends

50DMA216.97Positive

100DMA214.49Positive

200DMA226.40Negative

Market Momentum

MACD0.68Negative

RSI58.80Neutral

STOCH75.70Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CSLFINANCE, the sentiment is Positive. The current price of 218.45 is above the 20-day moving average (MA) of 210.28, above the 50-day MA of 216.97, and below the 200-day MA of 226.40, indicating a neutral trend. The MACD of 0.68 indicates Negative momentum. The RSI at 58.80 is Neutral, neither overbought nor oversold. The STOCH value of 75.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:CSLFINANCE.

CSL Finance Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:CSLFINANCE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:UYFINCORP	78Outperform	INR 5.75B	9.27	―	―	115.72%	391.07%
IN:AFIL	72Outperform	INR 3.16B	6.88	―	―	40.31%	29.34%
IN:CSLFINANCE	72Outperform	INR 4.98B	5.65	―	1.37%	19.69%	15.92%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:MONEYBOXX	52Neutral	INR 3.08B	181.53	―	―	5.87%	―
IN:MANCREDIT	48Neutral	INR 4.99B	27.61	―	0.32%	48.83%	36.34%
IN:MUTHOOTCAP	41Neutral	INR 3.12B	12.93	―	―	23.27%	-20.85%

* General Sector Average

Performance Comparison

IN:CSLFINANCE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:CSLFINANCE	CSL Finance Limited	218.45	-48.35	-18.12%
IN:AFIL	Akme Fintrade (India) Limited	7.18	-0.73	-9.23%
IN:MANCREDIT	Mangal Credit & Fincorp Ltd.	236.20	53.73	29.45%
IN:MUTHOOTCAP	Muthoot Capital Services Ltd.	189.85	-92.10	-32.67%
IN:UYFINCORP	U. Y. Fincorp Limited	30.20	14.71	94.96%
IN:MONEYBOXX	MoneyBoxx Finance Ltd.	44.15	-36.73	-45.41%

CSL Finance Limited Corporate Events

CSL Finance sets AGM date, dividend record date and proposes MD re-appointment

Aug 27, 2026

CSL Finance Limited has scheduled its 34th Annual General Meeting for September 19, 2026, to be held via video conferencing and other audio-visual means. The company has set September 12, 2026 as the record date to determine shareholder eligibility f...

CSL Finance shuts trading window ahead of June-quarter results

Jun 23, 2026

CSL Finance Limited has announced the closure of its trading window for designated and connected persons, along with their immediate relatives, from July 1, 2026 until 48 hours after the announcement of its unaudited financial results for the quarter...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 27, 2026

CSL Finance Limited AI Stock Analysis