Sita Enterprises Limited

Financial Services — Credit Services · BSE

₹148.45+₹8.45 (+6.04%)

DalalBaazaar Score

76 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Cash generation 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 Sita Enterprises Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sita Enterprises Limited, a non-banking finance company, primarily engages in investment and finance activities in India. The company invests in shares, securities, mutual and other funds, properties and financing through loans.

IndustryCredit Services

SectorFinancial Services

Employees5

Annual revenue₹6 Cr

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹70 reaches shareholders as profit, with ₹81 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹1.29 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.29 Cr

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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +1686% while net margin moved -41% 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+1686%

Margin effect-41%

DalalBaazaar Score

76/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.43 — 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

81/ 100

Excellent

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

Valuation

71/ 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

16.8x

3Y Median

27.6x

40 monthly readings · mean 25.9x · range 6.3x–51.5x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 39% below its 3y median of 27.6x. 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 is priced broadly in line with the peer median of 17.0x.

vs. its own history

Cheap

27.6x median over 40 months · -39%

vs. sector peers

Fair

17.0x median of 4 peers · -1%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.2x

PEG

0.14

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 3.7% to 22.6%.
Return on capital is rising
ROCE has improved from 4.6% to 26.2%.
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

1 item require attention · 1 high

🔴Significant margin compressionFinancial
EBITDA margin has fallen 84.6 points, from 166.0% to 81.4%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 39% 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.
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 166.0% to 81.4%. 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 121% a year✓ 161.4% CAGR
Latest reported year was -87.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 79%✓ 81.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 21%✓ 22.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 27.6x✓ 16.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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

3 good · 5 neutral · 3 weak

Market Cap

₹45 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.8x

Fair

Fairly valued against the generic band

P/B Ratio

2.21x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹8.83

Profitable

Profitable on a per-share basis

ROE

22.6%

Strong

Strong capital efficiency

ROCE

26.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-87.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-94.5%

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

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

71.9%

Good

Healthy core-business profitability

Net Margin

72.5%

Good

Strong bottom-line conversion

Current Ratio

12.97

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.43

Defensive

Steadier than the market

52W Range Position

41%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

134.0 / 136.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

71.8

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹2 Cr	₹3 Cr	₹6 Cr	+161.4%
EBITDA	₹1 Cr	₹3 Cr	₹1 Cr	₹5 Cr	+106.2%
EBITDA Margin	166.0%	187.2%	44.6%	81.4%	—
PAT (Net Profit)	₹0 Cr	₹3 Cr	₹1 Cr	₹5 Cr	+119.7%
EPS	₹1.42	₹9.39	₹3.75	₹15.07	+119.8%
ROE	3.7%	19.6%	7.3%	22.6%	—
ROCE	4.6%	20.6%	8.0%	26.2%	—
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹0 Cr	-₹4 Cr	—

🟢 Revenue has grown at 161.4% a year over 3 years.

🟢 EBITDA has grown at 106.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 166.0% to 81.4% over 3 years (-84.6 pts).

🟢 PAT (Net Profit) has grown at 119.7% a year over 3 years.

🟢 EPS has grown at 119.8% a year over 3 years.

🟢 ROE has risen from 3.7% to 22.6% over 3 years (+18.9 pts).

🟢 ROCE has risen from 4.6% to 26.2% over 3 years (+21.6 pts).

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹21 Cr

Total Liabilities

₹1 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹4 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.8%

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 positive4 general

Sita Enterprises Ltd shifts registered office within Mumbai

scanx.trade, 01 Jul

Sita Enterprises Ltd Falls to 52-Week Low of Rs 121.05 as Sell-Off Deepens

MarketsMojo, 17 Sept

Signet Industries standalone net profit rises 1066.67% in the June 2026 quarter

Business Standard, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Ad-Manum Finance Ltd. Share Price: Significant 8.95% Gain

Univest, 27 Jul

Sita Enterprises shareholders approve all four AGM resolutions

scanx.trade, 11 Sept

Regent Enterprises standalone net profit rises 54.27% in the June 2026 quarter

Business Standard, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Revenue growth is negative (-87.6%) 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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

MiddlingGrowth

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. 1 high-severity red flag sits above this conclusion and should be read first.

All 4 tripwires holding · see Key things to watch ↑