Sahara Housingfina Corporation Limited

Financial Services — Mortgage Finance · BSE

₹36.70+₹2.14 (+6.19%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Sahara Housingfina Corporation Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sahara Housingfina Corporation Limited provides housing finance for the purchase, construction, extension, repair, and renovation of houses to individuals and families in India.

IndustryMortgage Finance

SectorFinancial Services

Employees25

Annual revenue₹6 Cr

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 25 employees supports ₹25.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹25.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -35% while net margin moved -63% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-35%

Margin effect-63%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 13.4% a year
✗ Profit has declined at 37.6% a year
✗ Profit fell 20.0% in the latest year

Quality vs. Valuation

Company Quality

48/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

32/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

85.3x

Sector Median

15.9x

median of 3 sector peers

⚠️Against its sector it trades 436% above the peer median of 15.9x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

15.9x median of 3 peers · +436%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

46.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 10.8 points, from 22.8% to 12.0%.
🟡Profit is decliningFinancial
Net profit is down 76% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 22.8% to 12.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 436% above the peer median. That premium needs a reason that persists, or it closes.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 10%✓ 12.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 0.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.

Investment Checklist

4 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 2 neutral · 5 weak

Market Cap

₹26 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

85.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.47x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.43

Profitable

Profitable on a per-share basis

ROE

0.7%

Weak

Weak capital efficiency

ROCE

0.8%

Weak

Low return on total capital employed

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

-5.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-20.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹9 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

12.0%

Average

Average margins

Net Margin

5.4%

Average

Average bottom-line conversion

Current Ratio

1.03

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.93

Market-like

Moves roughly in line with the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

37.3 / 38.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹10 Cr	₹9 Cr	₹8 Cr	₹6 Cr	-13.4%
EBITDA	₹2 Cr	₹2 Cr	₹1 Cr	₹1 Cr	-30.1%
EBITDA Margin	22.8%	26.1%	16.3%	12.0%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-37.6%
EPS	₹2.03	₹2.01	₹0.93	₹0.49	-37.7%
ROE	2.8%	2.7%	1.2%	0.7%	—
ROCE	2.2%	2.5%	1.3%	0.8%	—
Total Debt	₹49 Cr	₹45 Cr	₹22 Cr	₹13 Cr	-35.2%
Free Cash Flow	₹10 Cr	₹4 Cr	₹24 Cr	₹9 Cr	-2.2%

🔴 Revenue has shrunk at 13.4% a year over 3 years.

🔴 EBITDA has shrunk at 30.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 22.8% to 12.0% over 3 years (-10.8 pts).

🔴 PAT (Net Profit) has shrunk at 37.6% a year over 3 years.

🔴 EPS has shrunk at 37.7% a year over 3 years.

🔴 ROE has fallen from 2.8% to 0.7% over 3 years (-2.2 pts).

🔴 ROCE has fallen from 2.2% to 0.8% over 3 years (-1.4 pts).

🟢 Total Debt has shrunk at 35.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 2.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹69 Cr

Total Liabilities

₹16 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹12 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.0%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 negative5 general

Sahara Housingfina reduces NCD outstanding to Rs 12 crore

scanx.trade, 23 Sept

Sahara Housing Fina Corporation standalone net profit declines 19.05% in the June 2026 quarter

Business Standard, 12 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Sahara Housingfina reports ₹12 crore outstanding NCDs for Q3FY26

scanx.trade, 05 Oct

SAHARA HOUSINGFINA CORPORATION Share Price

Upstox, 19 Mar

Sahara Housing Fina CEO Dhrubajyoti Bagchi passes away

scanx.trade, 03 Sept

MCA disqualifies Seemanto Roy as Sahara Housingfina director

The Times of India, 15 Nov

Watch Items

Revenue growth is negative (-5.0%) on the latest reported period — check if this is one-off or a trend.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Valuation

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 2 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑