Starteck Finance Limited

Financial Services — Credit Services · NSE

₹259.95+₹8.45 (+3.36%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Starteck Finance Limited operates as a non-banking financial company in India. It offers financing solutions to retail, small and medium enterprises (SMEs), and commercial customers in urban and semi-urban areas.

IndustryCredit Services

SectorFinancial Services

Employees5

Annual revenue₹41 Cr

How does it make money?

Turns over ₹41 Cr a year. Of every ₹100 of sales, about ₹58 reaches shareholders as profit, with ₹72 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹8.15 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹8.15 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 +44% while net margin moved -25% 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+44%

Margin effect-25%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.50 — 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

Quality vs. Valuation

Company Quality

66/ 100

Good

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

Valuation

69/ 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

10.6x

3Y Median

17.5x

40 monthly readings · mean 17.7x · range 7.0x–30.0x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 40% below its 3y median of 17.5x. 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 38% below the peer median of 17.0x.

vs. its own history

Cheap

17.5x median over 40 months · -40%

vs. sector peers

Cheap

17.0x median of 4 peers · -38%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

20.8x

PEG

3.96

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 56.7% to 71.8% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 12.2% to 9.0% — each rupee of shareholder capital earns less than it did.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 56.7% to 71.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 40% 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 38% 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?

Returns on shareholder capital are falling
ROE has dropped from 12.2% to 9.0%. 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.
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 10% a year✓ 13.0% CAGR
Latest reported year was 24.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 70%✓ 71.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✓ 9.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 17.5x✓ 10.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 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

6 good · 5 neutral · 0 weak

Market Cap

₹258 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.6x

Cheap

Cheap against the generic band

P/B Ratio

0.98x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹24.61

Profitable

Profitable on a per-share basis

ROE

9.0%

Moderate

Moderate capital efficiency

ROCE

8.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.33x

Moderate

Moderate leverage

Revenue Growth (YoY)

24.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

21.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.10%

Modest

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

Free Cash Flow

₹33 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

85.4%

Good

Healthy core-business profitability

Net Margin

75.4%

Good

Strong bottom-line conversion

Current Ratio

1.48

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.50

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

268.1 / 258.0

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹28 Cr	₹37 Cr	₹33 Cr	₹41 Cr	+13.0%
EBITDA	₹16 Cr	₹22 Cr	₹17 Cr	₹29 Cr	+22.3%
EBITDA Margin	56.7%	60.2%	50.9%	71.8%	—
PAT (Net Profit)	₹22 Cr	₹16 Cr	₹10 Cr	₹24 Cr	+2.7%
EPS	₹22.02	₹16.22	₹10.52	₹23.83	+2.7%
ROE	12.2%	7.8%	4.4%	9.0%	—
ROCE	9.4%	7.7%	4.9%	8.8%	—
Total Debt	₹181 Cr	₹202 Cr	₹227 Cr	₹351 Cr	+24.8%
Free Cash Flow	₹86 Cr	₹37 Cr	₹27 Cr	₹33 Cr	-27.5%

🟢 Revenue has grown at 13.0% a year over 3 years.

🟢 EBITDA has grown at 22.3% a year over 3 years.

🟢 EBITDA Margin has risen from 56.7% to 71.8% over 3 years (+15.1 pts).

🟢 PAT (Net Profit) has grown at 2.7% a year over 3 years.

🟢 EPS has grown at 2.7% a year over 3 years.

🔴 ROE has fallen from 12.2% to 9.0% over 3 years (-3.2 pts).

🟡 ROCE has held roughly flat at 8.8% over 3 years.

🔴 Total Debt has grown at 24.8% a year over 3 years.

🔴 Free Cash Flow has shrunk at 27.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹675 Cr

Total Liabilities

₹412 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹33 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.7%

Corporate Actions

Dividend Rate

₹0.25

Ex-Dividend Date

11 Sept 2026

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 positive1 mixed4 general

Starteck Finance Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 06 Oct

Starteck Finance Ltd (NSE: STARTECK) Declines 5.90% as Stock Draws Market Attention

Kalkine India, 30 Sept

Swastika Investmart vs Starteck Finance vs Ganges Securities: Which Stock Should You Track

Univest, 14 Oct

Starteck Finance approves ₹0.25 dividend, fund raising at 41st AGM

scanx.trade, 18 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Starteck Finance Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Starteck Finance Share Price Fall: Valuation and Sector View

Univest, 30 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

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

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth · Profitability

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.

All 4 tripwires holding · see Key things to watch ↑