SPA Capital Services Limited

Financial Services — Capital Markets · BSE

₹215.75+₹6.85 (+3.28%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

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, but sales are shrinking. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

SPA Capital Services Limited engages in the financial services business in India. The company offers wealth management and financial advisory services to institutions, corporates, and individuals.

IndustryCapital Markets

SectorFinancial Services

Annual revenue₹39 Cr

How does it make money?

Turns over ₹39 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹4 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, 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +133% while net margin moved -19% 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+133%

Margin effect-19%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 4.7% is weak

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

59/ 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

42.6x

3Y Median

119.3x

30 monthly readings · mean 109.0x · range 38.3x–141.1x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 64% below its 3y median of 119.3x. 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 27% below the peer median of 58.4x.

vs. its own history

Cheap

119.3x median over 30 months · -64%

vs. sector peers

Cheap

58.4x median of 3 peers · -27%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

48.3x

PEG

1.79

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

Inventory building faster than sales
Inventory is up 547180% against revenue growth of 133% — stock may not be moving.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 3.6 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 64% 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 27% 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 8.1% to 4.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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 24% a year✓ 32.6% CAGR
Latest reported year was -3.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 4.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 4x✓ 4.7x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 119.3x✓ 42.6x 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 · 4 neutral · 4 weak

Market Cap

₹66 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

42.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

3.72x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.07

Profitable

Profitable on a per-share basis

ROE

4.7%

Weak

Weak capital efficiency

ROCE

3.6%

Weak

Low return on total capital employed

Debt/Equity

0.95x

Moderate

Moderate leverage

Revenue Growth (YoY)

-3.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

417.4%

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

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.8%

Weak

Thin margins leave little room for error

Net Margin

4.2%

Average

Average bottom-line conversion

Current Ratio

26.08

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.62

Defensive

Steadier than the market

52W Range Position

77%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

207.1 / 206.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

71.4

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹17 Cr	₹21 Cr	₹33 Cr	₹39 Cr	+32.6%
EBITDA	₹1 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+8.8%
EBITDA Margin	8.1%	4.4%	4.9%	4.5%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+23.8%
EPS	₹1.43	₹1.24	₹1.61	₹2.71	+23.8%
ROE	2.7%	2.3%	2.9%	4.7%	—
ROCE	1.7%	1.5%	3.2%	3.6%	—
Total Debt	₹22 Cr	₹24 Cr	₹22 Cr	₹17 Cr	-8.0%
Free Cash Flow	₹2 Cr	₹3 Cr	-₹5 Cr	₹7 Cr	+46.1%

🟢 Revenue has grown at 32.6% a year over 3 years.

🟢 EBITDA has grown at 8.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.1% to 4.5% over 3 years (-3.6 pts).

🟢 PAT (Net Profit) has grown at 23.8% a year over 3 years.

🟢 EPS has grown at 23.8% a year over 3 years.

🟢 ROE has risen from 2.7% to 4.7% over 3 years (+2.0 pts).

🟢 ROCE has risen from 1.7% to 3.6% over 3 years (+1.9 pts).

🟢 Total Debt has shrunk at 8.0% a year over 3 years.

🟢 Free Cash Flow has grown at 46.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹37 Cr

Total Liabilities

₹19 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹7 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.4%

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 mixed4 general

Compare M.B.PARIKH with

Equitymaster, 29 Sept

Frontier Capital board approves SPA for ₹10/share stake acquisition

scanx.trade, 17 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

BSP Stock Price and Chart — NASDAQ:BSP

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Simply Wall Street, 10 Oct

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Yahoo! Finance Canada, 14 Oct

Elgi Equipments consolidated net profit rises 20.68% in the June 2026 quarter

Business Standard, 14 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 (-3.2%) 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 overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth · Valuation · Risk

WeakBusiness Quality · Profitability

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