SMC Global Securities Limited

Financial Services — Capital Markets · NSE

₹109.70+₹1.27 (+1.17%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

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, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

SMC Global Securities Limited, together with its subsidiaries, engages in the provision of various financial services in India and internationally. It operates through three segments: Broking, Distribution, and Trading; Insurance Broking Services; and Financing Services.

IndustryCapital Markets

SectorFinancial Services

Employees2,778

Annual revenue₹1,572 Cr

How does it make money?

Turns over ₹1,572 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 2,778 employees supports ₹56.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin24.8%

Net margin6.5%

Revenue / employee₹56.6 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.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

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.

ROCE14.5%

ROE7.8%

Peer median ROE13.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +46% while net margin moved -42% 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-42%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 13.6% is steady
✗ Profit has declined at 5.3% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

57/ 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

22.5x

3Y Median

7.1x

40 monthly readings · mean 7.7x · range 4.0x–14.3x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 218% above its 3y median of 7.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 61% below the peer median of 58.4x.

vs. its own history

Expensive

7.1x median over 40 months · +218%

vs. sector peers

Cheap

58.4x median of 3 peers · -61%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

22.5x

P/B

1.76x

EV/EBITDA

10.7x

PEG

0.97

Dividend Yield

1.09%

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 12.9% to 7.8% — each rupee of shareholder capital earns less than it did.
Receivables growing faster than sales
Receivables are up 95% against revenue growth of 46% — customers are taking longer to pay.
Valuation above its historical average
At 22.5x the stock trades 218% above its own median of 7.1x.

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 61% 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?

The price already assumes success
The stock trades 218% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 12.9% to 7.8%. 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

1Revenue growth stays above 10% a year✓ 13.6% CAGR
Latest reported year was 24.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 23%✓ 24.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 7.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 7.1x✗ 22.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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

3 good · 5 neutral · 3 weak

Market Cap

₹2,297 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.5x

Fair

Fairly valued against the generic band

P/B Ratio

1.76x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.87

Profitable

Profitable on a per-share basis

ROE

7.8%

Weak

Weak capital efficiency

ROCE

14.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.63x

High

High leverage

Revenue Growth (YoY)

24.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

23.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.09%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹118 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹109.7

Operating Margin

10.1%

Average

Average margins

Net Margin

6.2%

Average

Average bottom-line conversion

Current Ratio

1.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

79%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

100.5 / 88.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

68.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,073 Cr	₹1,426 Cr	₹1,495 Cr	₹1,572 Cr	+13.6%
EBITDA	₹271 Cr	₹439 Cr	₹440 Cr	₹389 Cr	+12.9%
EBITDA Margin	25.2%	30.7%	29.4%	24.8%	—
PAT (Net Profit)	₹120 Cr	₹187 Cr	₹146 Cr	₹102 Cr	-5.3%
EPS	₹5.63	₹8.95	₹13.92	—	—
ROE	12.9%	17.1%	12.0%	7.8%	—
ROCE	15.3%	23.6%	19.7%	14.5%	—
Total Debt	₹944 Cr	₹1,467 Cr	₹1,695 Cr	₹2,036 Cr	+29.2%
Free Cash Flow	-₹292 Cr	-₹223 Cr	-₹5 Cr	-₹118 Cr	—

🟢 Revenue has grown at 13.6% a year over 3 years.

🟢 EBITDA has grown at 12.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 24.8% over 3 years.

🔴 PAT (Net Profit) has shrunk at 5.3% a year over 3 years.

🔴 ROE has fallen from 12.9% to 7.8% over 3 years (-5.0 pts).

🟡 ROCE has held roughly flat at 14.5% over 3 years.

🔴 Total Debt has grown at 29.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,744 Cr

Total Liabilities

₹4,438 Cr

Total Debt

₹2,036 Cr

Cash & Equivalents

₹153 Cr

Operating Cash Flow

-₹73 Cr

Capex

-₹45 Cr

Shareholding (proxy)

Institutional Holding

0.2%

Insider Holding

71.7%

Corporate Actions

Dividend Rate

₹1.2

Ex-Dividend Date

15 Jun 2026

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 mixed5 general

SMC Global Securities Share Price

Upstox, 16 Oct

SMC Global Securities (SMCGLOBAL.NS) Slips 3.96% to ₹110.62 as Stock Drifts Toward Key Support - Common Gap

https://www.siam.in/, 15 Oct

Sebi penalises SMC Global Securities for compliance lapses

The Economic Times, 02 Oct

SMC Global Securities shares surge 18% to 52-week high | What's behind the jump?

TradingView, 28 SeptPrice 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.

Jio IPO: GMP rises; Ventura, SMC Global, SBI Securities, 3 others share views

Business Today, 17 Oct

SMC Global Securities Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

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

🟡Business QualityAdequate12.2/20

🟢Financial HealthStrong17/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak5.8/15

🟡ValuationFair7.3/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓Revenue growth stays above 10% a year13.6% CAGR
✓EBITDA margin holds above 23%24.8%
✗Return on equity stays above 8%7.8%
✗Interest cover stays above 3x1.6x
✗Valuation vs its own median of 7.1x22.5x today