Superior Finlease Limited

Financial Services — Credit Services · BSE

₹1.56+₹0.01 (+0.65%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, 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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Superior Finlease Limited, a non-banking financial company, engages in the provision of loans and advances to various corporates, industrial enterprises, and other persons in India.

IndustryCredit Services

SectorFinancial Services

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹24 left at the operating level before interest, tax and depreciation.

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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -69% while net margin moved -53% 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-69%

Margin effect-53%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 32.5% a year
✗ Profit has declined at 47.7% a year

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

30/ 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

EV/EBITDA

609.8x

PEG

—

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

Return on equity is falling
ROE has dropped from 8.8% to 0.8% — each rupee of shareholder capital earns less than it did.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 26.4 points, from 50.8% to 24.5%.
🟡Profit is decliningFinancial
Net profit is down 86% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 44% over 3 years — each existing share owns a smaller slice of the company.

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?

Margins are being competed away
EBITDA margin has fallen from 50.8% to 24.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 8.8% to 0.8%. 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

1EBITDA margin holds above 22%✓ 24.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 0.8%
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%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 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 · 3 neutral · 5 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

1.33x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.01

Loss-making

Negative earnings per share — the business is losing money

ROE

0.8%

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

7.47x

High

High leverage

Revenue Growth (YoY)

15.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

325.9%

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

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-40.6%

Weak

Thin margins leave little room for error

Net Margin

12.8%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.61

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1.6 / 1.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹1 Cr	₹0 Cr	-32.5%
EBITDA	₹1 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-47.1%
EBITDA Margin	50.8%	15.7%	7.3%	24.5%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-47.7%
EPS	₹0.11	₹0.02	—	₹0.01	-55.0%
ROE	8.8%	1.6%	0.2%	0.8%	—
ROCE	0.9%	0.2%	0.0%	—	—
Total Debt	₹45 Cr	₹45 Cr	₹45 Cr	₹45 Cr	+0.1%
Free Cash Flow	-₹1 Cr	-₹1 Cr	-₹1 Cr	-₹2 Cr	—

🔴 Revenue has shrunk at 32.5% a year over 3 years.

🔴 EBITDA has shrunk at 47.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 50.8% to 24.5% over 3 years (-26.4 pts).

🔴 PAT (Net Profit) has shrunk at 47.7% a year over 3 years.

🔴 EPS has shrunk at 55.0% a year over 3 years.

🔴 ROE has fallen from 8.8% to 0.8% over 3 years (-8.0 pts).

🟡 Total Debt has been broadly flat over 3 years (0.1% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹51 Cr

Total Liabilities

₹45 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.9%

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

Compare SP CAPITAL with

Equitymaster, 15 Oct

Superior Finlease Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Compare LIC Housing with

Equitymaster, 17 Oct

Superior Finlease schedules AGM for Sep 30, 2026

scanx.trade, 08 Sept

Superior Finlease Limited Share Price

Upstox, 12 Apr

Sebi slaps Rs 11.90 cr fine on 19 entities for 'pump and dump' of Superior Finlease shares

ETLegalWorld.com, 23 MayRegulatory

🔴Potentially negativeRegulatory and legal actions carry a financial cost and a governance question. The second usually matters more than the first.

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

MiddlingProfitability · Valuation

WeakGrowth · Risk

Points for each in the Score ↑

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.

1 of 2 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑