Sarthak Global Limited

Financial Services — Capital Markets · BSE

₹35.91−₹1.89 (−5.00%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is 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 Sarthak Global Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sarthak Global Limited trades in commodities in India. It operates through Trading of Commodities and Share Transfer Agent segments. The company invests in securities.

IndustryCapital Markets

SectorFinancial Services

Employees10

Annual revenue₹6 Cr

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 10 employees supports ₹58.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹58.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO 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 ROE13.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +46% while net margin moved -87% 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+46%

Margin effect-87%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 0.6% is weak

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

20/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

32.0x

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

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.0x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 13.6 points, from 24.1% to 10.5%.
🟡Profit is decliningFinancial
Net profit is down 81% 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 24.1% to 10.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 10% a year✓ 13.4% CAGR
Latest reported year was -89.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 10.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 0.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.0x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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

1 good · 2 neutral · 8 weak

Market Cap

₹11 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

6.33x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-1.61

Loss-making

Negative earnings per share — the business is losing money

ROE

0.6%

Weak

Weak capital efficiency

ROCE

5.7%

Weak

Low return on total capital employed

Debt/Equity

5.84x

High

High leverage

Revenue Growth (YoY)

-89.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-64.7%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-82.8%

Weak

Thin margins leave little room for error

Net Margin

-9.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

11.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

39.8 / 38.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

20.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹5 Cr	₹9 Cr	₹6 Cr	+13.4%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-14.1%
EBITDA Margin	24.1%	14.7%	12.8%	10.5%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-42.7%
EPS	₹0.19	₹0.06	₹0.1	₹0.04	-40.5%
ROE	3.4%	1.1%	1.8%	0.6%	—
ROCE	5.6%	6.0%	7.8%	5.7%	—
Total Debt	₹19 Cr	₹18 Cr	₹15 Cr	₹10 Cr	-19.4%
Free Cash Flow	-₹9 Cr	₹2 Cr	₹2 Cr	₹2 Cr	—

🟢 Revenue has grown at 13.4% a year over 3 years.

🔴 EBITDA has shrunk at 14.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 24.1% to 10.5% over 3 years (-13.6 pts).

🔴 PAT (Net Profit) has shrunk at 42.7% a year over 3 years.

🔴 EPS has shrunk at 40.5% a year over 3 years.

🔴 ROE has fallen from 3.4% to 0.6% over 3 years (-2.8 pts).

🟡 ROCE has held roughly flat at 5.7% over 3 years.

🟢 Total Debt has shrunk at 19.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹9 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹12 Cr

Total Liabilities

₹10 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

87.1%

Corporate Actions

Ex-Dividend Date

05 Sept 1997

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

1 positive1 mixed1 negative3 general

Sarthak Global Limited Reports Q3 FY26 Financial Results with Quarterly Loss but Nine-Month Profit

scanx.trade, 10 FebResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Compare with

Equitymaster, 06 Sept

Why Indian stocks are falling: CA Sarthak Ahuja explains US bond yield impact on markets

Business Today, 01 Oct

Sarthak Global Limited Announces Special Window for Physical Share Transfer and Dematerialisation

scanx.trade, 13 Apr

Virgo Polymers (India) standalone net profit declines 71.43% in the June 2026 quarter

Business Standard, 13 AugResults

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

Ration Card Upgrade: Govt to launch “Sarthak PDS”; what it is, how it works, and how it is beneficial

The Economic Times, 02 JunAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Watch Items

Revenue growth is negative (-89.8%) 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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · 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. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x · see Key things to watch ↑