SRG Fingrow Finance Limited

Financial Services — Credit Services · BSE

₹32.55₹0.00 (0.00%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

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, 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 SRG Fingrow Finance Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

SRG Fingrow Finance Limited, a non-banking finance company, provides financing services in India.

IndustryCredit Services

SectorFinancial Services

Employees4

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit. Each of its 4 employees supports ₹26.5 lakh of revenue a year, the signature of a people-led business.

Net margin20.2%

Revenue / employee₹26.5 lakh

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.

ROE1.4%

Peer median ROE16.5%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -41% while net margin moved -30% 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-41%

Margin effect-30%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 16.3% a year
✗ Profit has declined at 25.6% a year
✗ Profit fell 62.6% in the latest year

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

31/ 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.

Historical Valuation

Current P/E

81.4x

3Y Median

35.8x

39 monthly readings · mean 40.0x · range 14.4x–89.6x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 127% above its 3y median of 35.8x. 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 379% above the peer median of 17.0x.

vs. its own history

Expensive

35.8x median over 39 months · +127%

vs. sector peers

Expensive

17.0x median of 4 peers · +379%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

81.4x

P/B

1.17x

EV/EBITDA

—

PEG

—

Dividend Yield

None

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

Valuation above its historical average
At 81.4x the stock trades 127% above its own median of 35.8x.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 59% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 127% 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.
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

1Return on equity stays above 8%✗ 1.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Valuation vs its own median of 35.8x✗ 81.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 9 checks passed

✗ Strong return on equity (ROE ≥ 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 · 4 neutral · 4 weak

Market Cap

₹17 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

81.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.17x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.4

Profitable

Profitable on a per-share basis

ROE

1.4%

Weak

Weak capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-8.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-62.6%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹32.55

ROA

1.4%

Weak

Assets generate little profit

Operating Margin

35.9%

Good

Healthy core-business profitability

Net Margin

18.1%

Good

Strong bottom-line conversion

Current Ratio

21.61

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

71%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

33.8 / 31.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-16.3%
PAT (Net Profit)	₹1 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-25.6%
EPS	₹0.97	₹0.88	₹0.65	—	—
ROE	3.7%	3.3%	2.4%	1.4%	—
Free Cash Flow	₹2 Cr	₹1 Cr	-₹0 Cr	₹1 Cr	-30.1%

🔴 Revenue has shrunk at 16.3% a year over 3 years.

🔴 PAT (Net Profit) has shrunk at 25.6% a year over 3 years.

🔴 ROE has fallen from 3.7% to 1.4% over 3 years (-2.3 pts).

🔴 Free Cash Flow has shrunk at 30.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹15 Cr

Total Liabilities

₹1 Cr

Total Debt

—

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.2%

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 negative5 general

SRG FINGROW FINANCE LIMITED Share Price

Upstox, 05 May

SRG Fingrow Finance shareholders approve FY26 financials, director re-appointment

scanx.trade, 01 Oct

SRG Housing Finance Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

SRG Fingrow Finance (BSE: 536710) - NBFC Business Overview

Kalkine India, 16 Sept

SRG Fingrow Finance FY26 Results: Net profit falls 39% to ₹21.4 lakh

scanx.trade, 07 SeptResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

TCI Finance (NSEI:TCIFINANCE) - Stock Analysis

Simply Wall Street, 01 Dec

Watch Items

Revenue growth is negative (-8.8%) 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

🟢Business QualityStrong18/20

🟢Financial HealthStrong17/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate8.9/15

🔴ValuationDemanding6.2/15

🟡RiskModerate6.2/10

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.

This thesis breaks if

✗Return on equity stays above 8%1.4%
✗Valuation vs its own median of 35.8x81.4x today