Sangam Finserv Limited

Financial Services — Credit Services · BSE

₹32.00₹0.00 (0.00%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

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 Sangam Finserv Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sangam Finserv Limited, a non-banking finance company, engages in lending and investment activities in India. It offers secured business and corporate loans; and invests in shares, securities, and other financial instruments.

IndustryCredit Services

SectorFinancial Services

Employees40

Annual revenue₹12 Cr

How does it make money?

Turns over ₹12 Cr a year. Of every ₹100 of sales, about ₹27 reaches shareholders as profit. Each of its 40 employees supports ₹30.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹30.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. 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 ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -2% while net margin moved -48% 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-2%

Margin effect-48%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.7% a year
✗ Profit has declined at 20.3% a year

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

62/ 100

Fair

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

19.8x

3Y Median

22.7x

40 monthly readings · mean 23.8x · range 8.8x–55.8x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 13% below its 3y median of 22.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 16% above the peer median of 17.0x.

vs. its own history

Fair

22.7x median over 40 months · -13%

vs. sector peers

Fair

17.0x median of 4 peers · +16%

vs. generic bands

Fair

15x–35x

EV/EBITDA

—

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 Attention1

Return on equity is falling
ROE has dropped from 5.4% to 2.4% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 49% 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?

Returns on shareholder capital are falling
ROE has dropped from 5.4% to 2.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1Return on equity stays above 8%✗ 2.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Valuation vs its own median of 22.7x✓ 19.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 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

6 good · 4 neutral · 1 weak

Market Cap

₹149 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.8x

Fair

Fairly valued against the generic band

P/B Ratio

1.09x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.62

Profitable

Profitable on a per-share basis

ROE

2.4%

Weak

Weak capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

0.40x

Low

Conservative leverage

Revenue Growth (YoY)

106.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

133.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹15 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

88.1%

Good

Healthy core-business profitability

Net Margin

45.8%

Good

Strong bottom-line conversion

Beta (vs Nifty)

-0.17

Defensive

Steadier than the market

52W Range Position

26%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

34.8 / 38.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹15 Cr	₹14 Cr	₹12 Cr	-0.7%
PAT (Net Profit)	₹6 Cr	₹8 Cr	₹7 Cr	₹3 Cr	-20.3%
EPS	₹1.38	₹1.7	₹1.42	₹0.7	-20.3%
ROE	5.4%	6.2%	5.0%	2.4%	—
Total Debt	₹33 Cr	₹27 Cr	₹27 Cr	₹54 Cr	+17.4%
Free Cash Flow	₹20 Cr	₹10 Cr	₹29 Cr	₹15 Cr	-9.5%

🟡 Revenue has been broadly flat over 3 years (-0.7% a year).

🔴 PAT (Net Profit) has shrunk at 20.3% a year over 3 years.

🔴 EPS has shrunk at 20.3% a year over 3 years.

🔴 ROE has fallen from 5.4% to 2.4% over 3 years (-3.0 pts).

🔴 Total Debt has grown at 17.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 9.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹191 Cr

Total Liabilities

₹55 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹15 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

93.3%

Corporate Actions

Ex-Dividend Date

19 Sept 2018

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

1 mixed1 negative4 general

Sangam Finserv Ltd. Share Price Fall and Stock Analysis

Univest, 19 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Sangam Finserv Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Sangam Finserv AGM set for Sept 30; FY26 profit falls 50.6% to ₹325.76 lakh

scanx.trade, 05 SeptResults

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

Sangam Finserv Ltd. Upper Circuit Today: Price, Data and Peers

Univest, 22 Sept

AMPL Capital (BSE:539598) - Stock Analysis

Simply Wall Street, 08 Jul

Sangam Finserv Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Watch Items

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

StrongBusiness Quality · Financial Health · Valuation

MiddlingProfitability · Risk

WeakGrowth

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