Driven by short-term liabilities exceed short-term assets, negative free cash flow, the company is currently loss-making.
In simple words: The company is currently losing money, but sales are shrinking. 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.
The 60-second version of Sujala Trading & Holdings Limited — what it does, how it earns, and who it competes with, before any of the numbers below.
What does this company do?
Sujala Trading & Holdings Limited operates as a non-banking financial company in India. The company engages primarily in investment in shares and securities, lending, and offering credit facilities, corporate and personal loans, private funding.
IndustryCapital Markets
SectorFinancial Services
Employees6
Annual revenue₹1 Cr
How does it make money?
Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹-3 reaches shareholders as profit, with ₹124 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹13.4 lakh of revenue a year, the signature of a people-led business.
EBITDA margin123.8%
Net margin-2.8%
Revenue / employee₹13.4 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.
ROCE3.0%
ROE-1.7%
Peer median ROE13.7%
What has been driving growth?
Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -66% while net margin moved -159% 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-66%
Margin effect-159%
DalalBaazaar Score
45/ 100
Moderate
Weighted across six categories. Every point is explained below.
✗ Return on equity is negative
Quality vs. Valuation
Company Quality
45/ 100
Average
How good the business is, ignoring the share price entirely.
vs
Valuation
44/ 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
0.44x
EV/EBITDA
8.2x
PEG
—
Dividend Yield
None
What's Good / What's Bad
🟢 What's Going Well1
Margins are improving
EBITDA margin is up from 65.9% to 123.8% over 3 years.
🔴 What Needs Attention2
Return on capital is falling
ROCE has declined from 5.2% to 3.0% — often a sign of competition or overexpansion.
Short-term liquidity is tight
Current ratio of 0.30 — near-term obligations exceed near-term assets.
Red Flags
1 item require attention · 1 high
🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.
Investment Thesis
🟢 Bull CaseWhat could make this work?
Margin expansion has further to run
EBITDA margin has risen from 65.9% to 123.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
🔴 Bear CaseWhat could go wrong?
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
1EBITDA margin holds above 122%✓ 123.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ -1.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
Investment Checklist
4 / 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 · 2 neutral · 6 weak
Market Cap
₹7 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
0.44x
Reasonable
Reasonable against the company's book value
EPS (TTM)
₹-0.46
Loss-making
Negative earnings per share — the business is losing money
ROE
-1.7%
Weak
Weak capital efficiency
ROCE
3.0%
Weak
Low return on total capital employed
Debt/Equity
0.14x
Low
Conservative leverage
Revenue Growth (YoY)
-45.8%
Shrinking
Sales are contracting
Profit Growth (YoY)
83.7%
Healthy
Profits growing at a healthy clip
Dividend Yield
None
None
No dividend yield reported — usually means no payout, but verify if one was recently initiated
Free Cash Flow
-₹0 Cr
Cash burning
Spending more cash than the operations bring in
More Metrics
CMP
₹12.2
ROA
-0.7%
Weak
Assets generate little profit
Operating Margin
-48.0%
Weak
Thin margins leave little room for error
Net Margin
-48.0%
Weak
Very little revenue reaches the bottom line
Current Ratio
0.30
Tight
Tight short-term liquidity
Beta (vs Nifty)
-0.36
Defensive
Steadier than the market
52W Range Position
1%
Near low
Near its 52-week low
Technical Snapshot
SMA 20 / SMA 50
12.5 / 13.5
Bearish alignment (short < long)
Price vs SMA 200
Below
Long-term downtrend
RSI (14)
31.6
Neutral momentum
Financial Trend (4-Year)
Metric
FY23
FY24
FY25
FY26
3Y CAGR
Revenue
₹2 Cr
₹2 Cr
₹1 Cr
₹1 Cr
-30.0%
EBITDA
₹2 Cr
₹3 Cr
₹2 Cr
₹1 Cr
-13.6%
EBITDA Margin
65.9%
163.3%
162.3%
123.8%
—
PAT (Net Profit)
₹0 Cr
-₹0 Cr
-₹0 Cr
-₹0 Cr
—
EPS
₹0.19
₹-0.29
₹-0.24
₹-0.04
—
ROE
0.7%
-1.1%
-0.9%
-0.1%
—
ROCE
5.2%
7.8%
7.1%
3.0%
—
Total Debt
₹6 Cr
₹5 Cr
₹8 Cr
₹1 Cr
-41.2%
Free Cash Flow
-₹0 Cr
₹0 Cr
₹0 Cr
-₹0 Cr
—
🔴 Revenue has shrunk at 30.0% a year over 3 years.
🔴 EBITDA has shrunk at 13.6% a year over 3 years.
🟢 EBITDA Margin has risen from 65.9% to 123.8% over 3 years (+57.9 pts).
🔴 PAT (Net Profit) has turned negative, from ₹0 Cr to -₹0 Cr.
🔴 EPS has turned negative, from ₹0.19 to ₹-0.04.
🟡 ROE has held roughly flat at -0.1% over 3 years.
🔴 ROCE has fallen from 5.2% to 3.0% over 3 years (-2.1 pts).
🟢 Total Debt has shrunk at 41.2% a year over 3 years.
🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.
Revenue growth is negative (-45.8%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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 QualityAdequate10.5/20
🟢Financial HealthStrong17/20
🔴GrowthWeak5/20
🔴ProfitabilityWeak1.3/15
🟡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. 1 high-severity red flag sits above this conclusion and should be read first.
