Swastika Investmart Limited

Financial Services — Capital Markets · BSE

₹127.00−₹2.85 (−2.19%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

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

What does this company do?

Swastika Investmart Limited engages in the stock broking, depository participant, merchant banking, and other third-party products distribution activities in India. It operates through Broking and Related Services; and Merchant Banking & Investment Banking Services.

IndustryCapital Markets

SectorFinancial Services

Employees397

Annual revenue₹86 Cr

How does it make money?

Turns over ₹86 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 397 employees supports ₹21.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹21.7 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.

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 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 +4% while net margin moved +108% 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+4%

Margin effect+108%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.06 — 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

70/ 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

18.7x

3Y Median

21.1x

40 monthly readings · mean 53.2x · range 5.7x–200.4x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 11% below its 3y median of 21.1x. 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 68% below the peer median of 58.4x.

vs. its own history

Fair

21.1x median over 40 months · -11%

vs. sector peers

Cheap

58.4x median of 3 peers · -68%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.8x

PEG

0.63

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 13.9% to 25.4% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Receivables growing faster than sales
Receivables are up 47% against revenue growth of 4% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 988% against revenue growth of 4% — stock may not be moving.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 36% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 13.9% to 25.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 68% 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?

Growth barely outpaces inflation
Revenue compounding at 1.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 23%✓ 25.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✓ 9.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 1.4% CAGR
Latest reported year was 0.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Valuation vs its own median of 21.1x✓ 18.7x 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

3 good · 7 neutral · 1 weak

Market Cap

₹255 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.7x

Fair

Fairly valued against the generic band

P/B Ratio

1.88x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.78

Profitable

Profitable on a per-share basis

ROE

9.8%

Moderate

Moderate capital efficiency

ROCE

19.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

0.4%

Modest

Modest growth

Profit Growth (YoY)

2.2%

Modest

Slow profit growth

Dividend Yield

0.47%

Modest

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

Free Cash Flow

-₹15 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

21.0%

Good

Healthy core-business profitability

Net Margin

13.2%

Good

Strong bottom-line conversion

Current Ratio

1.27

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.06

Defensive

Steadier than the market

52W Range Position

55%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

139.2 / 155.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

25.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹83 Cr	₹98 Cr	₹116 Cr	₹86 Cr	+1.4%
EBITDA	₹12 Cr	₹20 Cr	₹28 Cr	₹22 Cr	+23.9%
EBITDA Margin	13.9%	20.5%	24.5%	25.4%	—
PAT (Net Profit)	₹6 Cr	₹12 Cr	₹20 Cr	₹13 Cr	+29.5%
EPS	₹4.15	₹8.3	₹8.67	₹6.65	+17.0%
ROE	10.8%	15.4%	17.7%	9.8%	—
ROCE	17.7%	25.6%	29.1%	19.0%	—
Total Debt	₹15 Cr	₹14 Cr	₹5 Cr	₹14 Cr	-2.3%
Free Cash Flow	-₹22 Cr	-₹23 Cr	-₹21 Cr	-₹15 Cr	—

🟡 Revenue has been broadly flat over 3 years (1.4% a year).

🟢 EBITDA has grown at 23.9% a year over 3 years.

🟢 EBITDA Margin has risen from 13.9% to 25.4% over 3 years (+11.5 pts).

🟢 PAT (Net Profit) has grown at 29.5% a year over 3 years.

🟢 EPS has grown at 17.0% a year over 3 years.

🟡 ROE has held roughly flat at 9.8% over 3 years.

🟢 ROCE has risen from 17.7% to 19.0% over 3 years (+1.4 pts).

🟢 Total Debt has shrunk at 2.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹503 Cr

Total Liabilities

₹367 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.4%

Corporate Actions

Dividend Rate

₹0.6

Ex-Dividend Date

18 Jun 2026

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

2 mixed4 general

Swastika Investmart Upper Circuit Today: Price, Data and Peers

Univest, 15 Oct

Swastika Investmart Lower Circuit Today: Price, Data and Peers

Univest, 08 Oct

Swastika Investmart allots 90.5 lakh convertible warrants for ₹57.6 crore

scanx.trade, 30 Sept

Laser Power shares list at 26% premium; should you hold or book profit?

Business Standard, 16 Jul

Kusumgar shares jump 10% after solid D-Street debut. What investors should do now?

The Economic Times, 15 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Milky Mist share price up 30% after IPO listing: Should investors hold or book profits?

India Today, 18 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth

MiddlingProfitability · Valuation

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.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑