Sumedha Fiscal Services Limited

Financial Services — Capital Markets · NSE

₹43.42−₹1.28 (−2.86%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 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 Sumedha Fiscal Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sumedha Fiscal Services Limited provides investment banking services in India.

IndustryCapital Markets

SectorFinancial Services

Employees49

Annual revenue₹107 Cr

How does it make money?

Turns over ₹107 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹-1 left at the operating level before interest, tax and depreciation. Each of its 49 employees supports ₹2.18 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin-0.8%

Net margin2.3%

Revenue / employee₹2.18 Cr

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.

ROCE-0.1%

ROE3.7%

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 +81% while net margin moved -12% 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+81%

Margin effect-12%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.7% is weak

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

87/ 100

Cheap

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

12.8x

Sector Median

58.4x

median of 3 sector peers

🟢Against its sector it trades 78% below the peer median of 58.4x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

58.4x median of 3 peers · -78%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.8x

P/B

0.53x

EV/EBITDA

—

PEG

0.77

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 Attention2

Margins are compressing
EBITDA margin has slipped from 3.5% to -0.8% over 3 years.
Return on capital is falling
ROCE has declined from 3.8% to -0.1% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 4.2 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 78% 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 3.5% to -0.8%. 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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 21.8% CAGR
Latest reported year was 13.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -3%✓ -0.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 3.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.

Investment Checklist

5 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 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

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹35 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.8x

Cheap

Cheap against the generic band

P/B Ratio

0.53x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.38

Profitable

Profitable on a per-share basis

ROE

3.7%

Weak

Weak capital efficiency

ROCE

-0.1%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

13.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

13.4%

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

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹43.42

Operating Margin

18.8%

Good

Healthy core-business profitability

Net Margin

2.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

8.46

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.73

Defensive

Steadier than the market

52W Range Position

59%

Mid-range

Technical Snapshot

RSI (14)

49.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹59 Cr	₹93 Cr	₹98 Cr	₹107 Cr	+21.8%
EBITDA	₹2 Cr	₹4 Cr	-₹3 Cr	-₹1 Cr	—
EBITDA Margin	3.5%	3.8%	-2.9%	-0.8%	—
PAT (Net Profit)	₹2 Cr	₹8 Cr	₹7 Cr	₹2 Cr	+16.6%
EPS	₹1.91	₹9.58	₹9.12	₹3.03	+16.6%
ROE	3.0%	13.3%	11.3%	3.7%	—
ROCE	3.8%	10.0%	3.7%	-0.1%	—
Free Cash Flow	-₹1 Cr	₹2 Cr	₹1 Cr	-₹4 Cr	—

🟢 Revenue has grown at 21.8% a year over 3 years.

🔴 EBITDA has turned negative, from ₹2 Cr to -₹1 Cr.

🔴 EBITDA Margin has fallen from 3.5% to -0.8% over 3 years (-4.2 pts).

🟢 PAT (Net Profit) has grown at 16.6% a year over 3 years.

🟢 EPS has grown at 16.6% a year over 3 years.

🟡 ROE has held roughly flat at 3.7% over 3 years.

🔴 ROCE has fallen from 3.8% to -0.1% over 3 years (-3.9 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹69 Cr

Total Liabilities

₹4 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

56.8%

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 positive5 general

Sumedha Fiscal Services Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

US Infotech buys 250 Sumedha Fiscal shares, holds 13.42%

scanx.trade, 21 Sept

Sumedha Fiscal Services Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Sumedha Fiscal Services Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Sumedha Fiscal Services passes dividend and director reappointment at AGM

scanx.trade, 20 AugCapital return

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

Sumedha Fiscal Services Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🔴Business QualityWeak6.5/20

🟢Financial HealthStrong17/20

🟡GrowthModest12.9/20

🔴ProfitabilityWeak4.5/15

🟢ValuationAttractive13/15

🔴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.

This thesis breaks if

✓Revenue growth stays above 16% a year21.8% CAGR
✓EBITDA margin holds above -3%-0.8%
✗Return on equity stays above 8%3.7%