Summit Securities Ltd Q1 FY26 – The “Sleeping Beauty” of RPG, Trading at 0.24x Book
1. At a Glance
CMP ₹2,148, market cap ₹2,340 Cr, P/E 27x, book value ₹9,050, but stock trades at just 0.24x BV — like buying a Lamborghini at second-hand scooter rates. FY25 revenue ₹145 Cr, PAT ₹85.8 Cr, OPM 83%. ROE? A nap-worthy 0.85%. ROCE? 1.2%. Promoters own 74.6%. Debt? Zero. The stock is basically a treasure chest locked in the RPG family vault.
2. Introduction
Every Dalal Street has that one stock which looks less like a business and more like a holding company museum piece. Summit Securities is that. It doesn’t manufacture tyres, cables, or software. It just owns people who do.
Born as RPG Itochu Finance, the company morphed into Summit via a multi-way scheme of arrangement that even a CA student would find unnecessarily complicated. Since then, its job is simple: hold chunky stakes in CEAT, RPG Life Sciences, and other RPG group jewels, collect dividends, and do absolutely nothing exciting.
So why does this stock exist? Mainly so analysts can scratch their heads about why it trades at a 75% discount to book while everyone else at RPG happily mints operating profits.
Question for you: If you had to choose, would you rather own CEAT directly… or buy Summit and get CEAT plus RPG Life Sciences at a discount, with the patience test included free?
3. Business Model – WTF Do They Even Do?
Think of Summit Securities as that rich cousin who doesn’t work but shows up at weddings with all the family jewellery.
Dividend Income (82% of FY22 revenue): The company’s cash flow mostly comes from dividends on its investments. CEAT alone provides a fat chunk.
Net Gain on Investments (16%): From occasional mark-to-market joyrides.
Interest Income (2%): Petty cash from NBFC classification, because RBI won’t let you be a “holding company” without a badge.
Summit doesn’t run factories or stores. It simply collects income from investments and passes it through. It’s like a Netflix account sharer — doesn’t create content, just benefits from others.
4. Financials Overview
Source table
Metric
Latest Qtr (Q1 FY26)
YoY Qtr (Q1 FY25)
Prev Qtr (Q4 FY25)
YoY %
QoQ %
Revenue
₹27.5 Cr
₹20.8 Cr
₹10 Cr
+32.2%
+175%
EBITDA
₹27 Cr
₹19 Cr
–₹5 Cr
+42%
N/A
PAT
₹20.2 Cr
₹9.5 Cr
–₹5 Cr
+112%
N/A
EPS (₹)
18.5
8.7
–4.3
+112%
N/A
Commentary: PAT doubled, margins insane (>80%), but remember — this is because dividends came in. One quarter it looks like Ambani, next quarter like your broke roommate.
5. Valuation Discussion – Fair Value Range Only
P/E Method
FY25 EPS ₹79
Apply a fair multiple 15–20x (given holding company discount).
