Satin Creditcare Network Limited

Financial Services — Credit Services · NSE

₹234.95+₹6.09 (+2.66%)

DalalBaazaar Score

82 / 100

🟢 Strong

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Satin Creditcare Network Limited, a non-banking finance company, provides micro finance services in India.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹2,404 Cr

How does it make money?

Turns over ₹2,404 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation.

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 is the outlook?

1 analysts covering the stock expect revenue to grow about 15.8% and earnings to grow about 29.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.8%

Est. earnings growth+29.8%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +89% while net margin moved +3560% 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+89%

Margin effect+3560%

DalalBaazaar Score

82/ 100

Strong

Weighted across six categories. Every point is explained below.

✓ Beta of 0.28 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

86/ 100

Excellent

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

Valuation

80/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

6.3x

3Y Median

9.1x

40 monthly readings · mean 123.2x · range 3.3x–444.2x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 31% below its 3y median of 9.1x. 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 63% below the peer median of 17.0x.

vs. its own history

Cheap

9.1x median over 40 months · -31%

vs. sector peers

Cheap

17.0x median of 4 peers · -63%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

17.6x

PEG

0.02

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 0.3% to 11.6%.
Return on capital is rising
ROCE has improved from 0.2% to 5.1%.
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 · 2 watch

🟡Margins are compressingFinancial
EBITDA margin is down 4.3 points over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 30% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 31% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 63% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 32.7% to 28.5%. 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.

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

1Revenue growth stays above 18% a year✓ 23.5% CAGR
Latest reported year was 26.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 26%✓ 28.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 10%✓ 11.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 9.1x✓ 6.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹2,584 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.3x

Cheap

Cheap against the generic band

P/B Ratio

0.90x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹37.25

Profitable

Profitable on a per-share basis

ROE

11.6%

Moderate

Moderate capital efficiency

ROCE

5.1%

Weak

Low return on total capital employed

Debt/Equity

3.83x

High

High leverage

Revenue Growth (YoY)

26.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

172.0%

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

-₹1,003 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

4.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

28.6%

Good

Healthy core-business profitability

Net Margin

25.3%

Good

Strong bottom-line conversion

Current Ratio

1.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.28

Defensive

Steadier than the market

52W Range Position

72%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

227.0 / 224.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

46.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,275 Cr	₹1,860 Cr	₹2,224 Cr	₹2,404 Cr	+23.5%
EBITDA	₹417 Cr	₹759 Cr	₹775 Cr	₹684 Cr	+17.9%
EBITDA Margin	32.7%	40.8%	34.8%	28.5%	—
PAT (Net Profit)	₹5 Cr	₹436 Cr	₹186 Cr	₹332 Cr	+310.2%
EPS	₹0.59	₹43.27	₹16.92	₹30.2	+271.3%
ROE	0.3%	18.2%	7.3%	11.6%	—
ROCE	0.2%	8.7%	3.4%	5.1%	—
Total Debt	₹5,911 Cr	₹7,910 Cr	₹8,791 Cr	₹10,991 Cr	+23.0%
Free Cash Flow	-₹966 Cr	-₹2,082 Cr	-₹583 Cr	-₹1,003 Cr	—

🟢 Revenue has grown at 23.5% a year over 3 years.

🟢 EBITDA has grown at 17.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 32.7% to 28.5% over 3 years (-4.3 pts).

🟢 PAT (Net Profit) has grown at 310.2% a year over 3 years.

🟢 EPS has grown at 271.3% a year over 3 years.

🟢 ROE has risen from 0.3% to 11.6% over 3 years (+11.3 pts).

🟢 ROCE has risen from 0.2% to 5.1% over 3 years (+5.0 pts).

🔴 Total Debt has grown at 23.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹14,387 Cr

Total Liabilities

₹11,519 Cr

Cash & Equivalents

₹1,506 Cr

Operating Cash Flow

-₹974 Cr

Capex

-₹29 Cr

Shareholding (proxy)

Institutional Holding

7.0%

Insider Holding

59.7%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹277

+17.9% vs CMP

Target Range

₹277 – ₹277

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

2 mixed4 general

Satin Creditcare Network shares gain 4% after Q2 business update; AUM rises 31% YoY

The Economic Times, 07 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Satin Creditcare warrants issuance approved by 99.02% votes

scanx.trade, 14 Oct

Satin Creditcare Network Share Price: 7 Stock Signals to Watch Now

Univest, 05 Oct

TPG-backed Newquest Asia Fund sells Rs 115 crore Shadowfax shares, MIT offloads over 1% stake in Satin...

Moneycontrol.com, 06 Oct

Satin Creditcare Network board approves ₹5,000 crore NCD fundraising plan

CNBC TV18, 23 Jun

Satin Creditcare Network Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

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 · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 4 tripwires holding · see Key things to watch ↑