Saraswati Commercial (India) Limited

Financial Services — Asset Management · NSE

₹9,805.00−₹85.00 (−0.86%)

DalalBaazaar Score

80 / 100

🟢 Strong

Verdict

ATTRACTIVE

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, 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, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Saraswati Commercial (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Saraswati Commercial (India) Limited, a non-banking financial company, engages in the business of investment and trading in shares and securities, and lending activities in India. Saraswati Commercial (India) Limited was incorporated in 1983 and is based in Mumbai, India.

IndustryAsset Management

SectorFinancial Services

Employees8

Annual revenue₹72 Cr

How does it make money?

Turns over ₹72 Cr a year. Of every ₹100 of sales, about ₹128 reaches shareholders as profit, with ₹161 left at the operating level before interest, tax and depreciation. Each of its 8 employees supports ₹8.99 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹8.99 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +66% while net margin moved +375% 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+375%

DalalBaazaar Score

80/ 100

Strong

Weighted across six categories. Every point is explained below.

✓ Beta of -0.11 — 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

84/ 100

Excellent

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

Valuation

82/ 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

7.7x

Sector Median

17.0x

median of 4 sector peers

🟢Against its sector it trades 55% below the peer median of 17.0x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

17.0x median of 4 peers · -55%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.3x

PEG

0.08

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 48.2% to 160.9% over 3 years.
Return on equity is rising
ROE has improved from 2.7% to 8.4%.
Return on capital is rising
ROCE has improved from 4.5% to 9.5%.
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

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 48.2% to 160.9%. 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 55% 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?

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 14% a year✓ 18.4% CAGR
Latest reported year was 140.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 159%✓ 160.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✓ 8.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.

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
✓ 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

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹1,075 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.7x

Cheap

Cheap against the generic band

P/B Ratio

0.98x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1,279.67

Profitable

Profitable on a per-share basis

ROE

8.4%

Moderate

Moderate capital efficiency

ROCE

9.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.01x

Low

Conservative leverage

Revenue Growth (YoY)

140.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

124.1%

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

-₹114 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

98.4%

Good

Healthy core-business profitability

Net Margin

80.1%

Good

Strong bottom-line conversion

Current Ratio

79.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.11

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

41.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹43 Cr	₹6 Cr	₹75 Cr	₹72 Cr	+18.4%
EBITDA	₹21 Cr	₹125 Cr	₹70 Cr	₹116 Cr	+77.0%
EBITDA Margin	48.2%	2060.5%	94.3%	160.9%	—
PAT (Net Profit)	₹12 Cr	₹104 Cr	₹53 Cr	₹92 Cr	+99.1%
EPS	₹113.48	₹1,008.85	₹517.51	₹842.32	+95.1%
ROE	2.7%	14.9%	5.5%	8.4%	—
ROCE	4.5%	16.5%	6.4%	9.5%	—
Total Debt	₹22 Cr	₹0 Cr	₹43 Cr	₹0 Cr	-82.6%
Free Cash Flow	₹27 Cr	₹33 Cr	₹9 Cr	-₹114 Cr	—

🟢 Revenue has grown at 18.4% a year over 3 years.

🟢 EBITDA has grown at 77.0% a year over 3 years.

🟢 EBITDA Margin has risen from 48.2% to 160.9% over 3 years (+112.7 pts).

🟢 PAT (Net Profit) has grown at 99.1% a year over 3 years.

🟢 EPS has grown at 95.1% a year over 3 years.

🟢 ROE has risen from 2.7% to 8.4% over 3 years (+5.7 pts).

🟢 ROCE has risen from 4.5% to 9.5% over 3 years (+5.1 pts).

🟢 Total Debt has shrunk at 82.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹27 Cr to -₹114 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,218 Cr

Total Liabilities

₹111 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹114 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

89.1%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 mixed5 general

Saraswati Commercial (India) Ltd leads gainers in 'B' group

Business Standard, 07 Jul

Saraswati Commercial (India) Ltd. Share Price Live Today

CNBC TV18, 16 Apr

Saraswati Commercial Share Price Fall: Price, Valuation

Univest, 11 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Saraswati Commercial (India) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

Saraswati Commercial (India) Ltd (ZSARACOM): Growth Trigger Watch

Kalkine India, 14 Sept

Saraswati Commercial shareholders approve all 15 AGM resolutions

scanx.trade, 24 Sept

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.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · 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.

All 3 tripwires holding · see Key things to watch ↑