Srestha Finvest Limited

Financial Services — Credit Services · BSE

₹0.31+₹0.02 (+6.90%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 Srestha Finvest Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Srestha Finvest Limited, a non-banking finance company, provides loans, finance, consultancy, and investment services in India. It operates through two segments, Financing and Investment Activities.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹-102 reaches shareholders as profit, with ₹-97 left at the operating level before interest, tax and depreciation.

EBITDA margin-97.3%

Net margin-101.7%

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.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

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.

ROCE-3.7%

ROE-4.6%

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 +429% while net margin moved -71% 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+429%

Margin effect-71%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

• ROCE has been broadly stable
✗ EBITDA margin of -97.3% is thin — little cushion if costs rise
✗ The business is lossmaking at the net level
• Revenue has compounded at 74.2% a year, which is the base these returns are earned on
• Lender: ROCE is excluded here because borrowing is raw material for this business, not leverage

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

36/ 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

P/E (Trailing)

Not meaningful

P/B

0.30x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Return on equity is rising
ROE has improved from -8.1% to -4.6%.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from -42.3% to -97.3% over 3 years.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -1.9x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹8 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 55.0 points, from -42.3% to -97.3%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 144% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from -42.3% to -97.3%. 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
3 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 56% a year✓ 74.2% CAGR
Latest reported year was 2.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -99%✓ -97.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ -4.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ -1.9x
How much operating profit can fall before interest stops being comfortably covered.

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 · 3 neutral · 5 weak

Market Cap

₹59 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

0.30x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.22

Loss-making

Negative earnings per share — the business is losing money

ROE

-4.6%

Weak

Weak capital efficiency

ROCE

-3.7%

Weak

Low return on total capital employed

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

2.4%

Modest

Modest growth

Profit Growth (YoY)

78.4%

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

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹0.31

Operating Margin

101.8%

Good

Healthy core-business profitability

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

475.18

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.17

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

0.2 / 0.3

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

68.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹13 Cr	₹7 Cr	₹7 Cr	+74.2%
EBITDA	-₹1 Cr	₹4 Cr	-₹4 Cr	-₹7 Cr	—
EBITDA Margin	-42.3%	27.7%	-59.3%	-97.3%	—
PAT (Net Profit)	-₹5 Cr	₹2 Cr	-₹35 Cr	-₹8 Cr	—
EPS	₹-0.3	₹0.01	₹-0.21	₹-0.05	—
ROE	-8.1%	1.3%	-20.7%	-4.6%	—
ROCE	-5.1%	1.0%	-15.3%	-3.7%	—
Total Debt	₹30 Cr	₹50 Cr	₹57 Cr	₹48 Cr	+16.9%
Free Cash Flow	-₹44 Cr	-₹16 Cr	-₹54 Cr	-₹21 Cr	—

🟢 Revenue has grown at 74.2% a year over 3 years.

🔴 EBITDA Margin has fallen from -42.3% to -97.3% over 3 years (-55.0 pts).

🟢 ROE has risen from -8.1% to -4.6% over 3 years (+3.5 pts).

🟢 ROCE has risen from -5.1% to -3.7% over 3 years (+1.4 pts).

🔴 Total Debt has grown at 16.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹212 Cr

Total Liabilities

₹48 Cr

Total Debt

₹48 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹21 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

7.2%

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

1 mixed5 general

Srestha Finvest Q1FY27 net loss widens to ₹2,743 lakh on NPA surge

scanx.trade, 14 Aug

Srestha Finvest Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 14 Sept

Srestha Finvest Ltd Forms Death Cross, Signalling Potential Bearish Trend

MarketsMojo, 13 OctAnalyst view

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

Srestha Finvest - 13 penny stocks plunge up to 90% in FY26. Are you affected?

The Economic Times, 29 Mar

Srestha Finvest reports consolidated profit in Q4FY26

scanx.trade, 31 May

Srestha Finvest - 9 penny stocks crash up to 57% in just 2 months

The Economic Times, 04 Oct

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 QualityWeak6.8/20

🟢Financial HealthStrong17/20

🟢GrowthStrong13/20

🔴ProfitabilityWeak6.2/15

🟡ValuationFair7.1/15

🔴RiskHigh4/10

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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 56% a year74.2% CAGR
✓EBITDA margin holds above -99%-97.3%
✗Return on equity stays above 8%-4.6%
✗Interest cover stays above 3x-1.9x