Summit Securities Limited

Financial Services — Capital Markets · NSE

₹1,330.10+₹8.50 (+0.64%)

DalalBaazaar Score

79 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

Moderate

Driven by 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. 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, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Summit Securities Limited, a non-banking financial company, engages in investment and financial activities. The investments of the firm are typically long term in nature and predominantly in the equity markets. The firm typically invests in companies in real estate sector.

IndustryCapital Markets

SectorFinancial Services

Employees6

Annual revenue₹138 Cr

How does it make money?

Turns over ₹138 Cr a year. Of every ₹100 of sales, about ₹76 reaches shareholders as profit, with ₹99 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹23.04 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin99.0%

Net margin75.7%

Revenue / employee₹23.04 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.

ROCE1.4%

ROE1.2%

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 +181% while net margin moved +0% 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+181%

Margin effect+0%

DalalBaazaar Score

79/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.55 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

80/ 100

Excellent

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

Valuation

84/ 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

12.1x

3Y Median

30.2x

40 monthly readings · mean 31.8x · range 13.7x–60.2x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 60% below its 3y median of 30.2x. 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 79% below the peer median of 58.4x.

vs. its own history

Cheap

30.2x median over 40 months · -60%

vs. sector peers

Cheap

58.4x median of 3 peers · -79%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.1x

P/B

0.17x

EV/EBITDA

10.6x

PEG

0.29

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 92.2% to 99.0% over 3 years.
Valuation below its historical average
At 12.1x the stock trades 60% below its own median of 30.2x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Low reported insider holdingOwnership
Reported insider holding is 4.4%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 92.2% to 99.0%. 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 60% 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 79% 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?

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 31% a year✓ 41.2% CAGR
Latest reported year was 48.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 97%✓ 99.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 1.2%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 30.2x✓ 12.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹1,456 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.1x

Cheap

Cheap against the generic band

P/B Ratio

0.17x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹109.83

Profitable

Profitable on a per-share basis

ROE

1.2%

Weak

Weak capital efficiency

ROCE

1.4%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

48.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

74.8%

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

₹98 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,330.1

Operating Margin

97.0%

Good

Healthy core-business profitability

Net Margin

76.1%

Good

Strong bottom-line conversion

Current Ratio

9.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1346.3 / 1397.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹49 Cr	₹69 Cr	₹126 Cr	₹138 Cr	+41.2%
EBITDA	₹45 Cr	₹98 Cr	₹126 Cr	₹137 Cr	+44.5%
EBITDA Margin	92.2%	142.0%	100.5%	99.0%	—
PAT (Net Profit)	₹37 Cr	₹76 Cr	₹69 Cr	₹105 Cr	+41.3%
EPS	₹34	₹69.47	₹62.92	₹95.98	+41.3%
ROE	0.7%	0.8%	0.7%	1.2%	—
ROCE	0.8%	1.0%	1.0%	1.4%	—
Free Cash Flow	₹38 Cr	₹36 Cr	₹74 Cr	₹98 Cr	+37.4%

🟢 Revenue has grown at 41.2% a year over 3 years.

🟢 EBITDA has grown at 44.5% a year over 3 years.

🟢 EBITDA Margin has risen from 92.2% to 99.0% over 3 years (+6.8 pts).

🟢 PAT (Net Profit) has grown at 41.3% a year over 3 years.

🟢 EPS has grown at 41.3% a year over 3 years.

🟡 ROE has held roughly flat at 1.2% over 3 years.

🟡 ROCE has held roughly flat at 1.4% over 3 years.

🟢 Free Cash Flow has grown at 37.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9,811 Cr

Total Liabilities

₹1,256 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹98 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

74.5%

Insider Holding

4.4%

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

6 general

Summit Securities Share Price near 52-week low, price action

Univest, 08 Oct

Summit Securities Ltd. Peer Comparison – Compare with Others

Value Research, 10 Sept

Summit Securities Share Price Forecast to 2030

Univest, 31 Jul

Summit Therapeutics plc (SMMT) stock price, news, quote and history

Yahoo Finance UK, 16 Oct

Summit Securities appoints Jiya Gangwani as CCO for five-year term

scanx.trade, 25 Sept

Summit Securities Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Watch Items

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

🟢Business QualityStrong15.9/20

🟢Financial HealthStrong17/20

🟢GrowthStrong18.5/20

🟡ProfitabilityModerate8.9/15

🟢ValuationAttractive13.2/15

🟡RiskModerate5.2/10

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.

This thesis breaks if

✓Revenue growth stays above 31% a year41.2% CAGR
✓EBITDA margin holds above 97%99.0%
✗Return on equity stays above 8%1.2%
✓Valuation vs its own median of 30.2x12.1x today