Ladies and gentlemen, meet Saraswati Commercial (India) Ltd – an NBFC that behaves less like a lender and more like a well-funded family office with a taste for high-stakes investing. Trading at ₹12,955 per share with a market cap of ₹1,420 crore, the company operates in the grey zone between finance and wizardry. Over the past year, the stock has fallen about 36%, but before you call it a disaster, note this: the company still made ₹60 crore PAT in the latest quarter despite being in the “boring” lending space.
Its P/E ratio of 66x screams “I am not cheap,” while the Book Value of ₹9,712 says “I’m solid but not exactly a bargain.” The company’s Debt to Equity ratio of just 0.05 makes it almost debt-free — the kind of NBFC your CA would dream of dating. Yet, the ROE is just 6.47%, which feels like watching a Ferrari doing 40 km/h on a highway.
In the quarter ended September 2025, Saraswati reported sales of ₹73 crore and PAT of ₹60 crore — a margin north of 80%, which is so good it makes mutual funds look like street beggars. But here’s the twist — most of the profit comes from fair-value gains on investments, not loans. Basically, this is a finance company that profits more from playing the market than from financing it.
2. Introduction
Founded in 1983, Saraswati Commercial started life as a traditional investment house. Fast-forward four decades, and it now holds the title of a Systemically Important Non-Deposit Taking NBFC, regulated under RBI’s “Middle Layer” category — a fancy way of saying “You’re big enough that RBI’s watching you, but not big enough to panic the system.”
Over the years, Saraswati has become a quiet yet active capital allocator, lending selectively and investing aggressively. Instead of chasing retail borrowers or housing loans, Saraswati focuses on equity investments, inter-corporate loans, and short-term opportunities — almost like a private equity fund disguised as an NBFC.
In FY23, 78% of its revenue came from net gains on fair value changes, and only 3% came from interest income. Translation: they make more money when the market rallies than when borrowers pay interest.
With holdings across sectors, a penchant for preferential allotments, and a tendency to pop up in BSE’s corporate action feed like a Bollywood cameo, Saraswati’s investing arm is constantly active. The company’s latest adventures? Participating in ₹150 crore worth of Atlanta Electricals, ₹89.8 crore in Trualt, and ₹26.74 crore in Tilaknagar — all in H1 FY26 alone. Clearly, Saraswati isn’t just investing; it’s collecting companies like rare NFTs.
3. Business Model – WTF Do They Even Do?
If you think Saraswati Commercial lends money like a typical NBFC, think again. This company’s business model is a cross between Warren Buffett’s Berkshire Hathaway and a Gujarati stock trader’s Demat account on steroids.
Here’s how they make money:
Investments in Shares and Securities: The company holds a whopping ₹1,048 crore worth of investments as of September 2025. Most of these are in quoted and unquoted shares, which keep growing as Saraswati hops from one preferential allotment to another like a well-dressed investment shark.
Lending Activities: Lending forms a tiny part of operations, mostly to group companies or high-value corporate clients. In FY23, loans to employees were ₹13.8 crore — down 82% from FY22. The rest is carefully placed in short-term, secured arrangements.
Subsidiaries:
Arkaya Commercials Pvt Ltd
Sareshwar Finance and Trading Pvt Ltd Both engage in commission and trading business — the family’s way of keeping side hustles profitable.
In short, Saraswati Commercial isn’t in the “finance” business. It’s in the “strategic investment” business — with the flexibility of an NBFC license and the boldness of a venture capitalist.
4. Financials Overview
Metric
Latest Qtr (Sep’25)
Same Qtr Last Yr
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
73.3
78.3
31.0
-6.4%
+136%
EBITDA
63.0
74.0
30.0
-14.9%
+110%
PAT
60.3
63.3
24.0
-4.8%
+151%
EPS (₹)
550.23
614.91
215.17
-10.5%
+155%
Commentary: If profit margins were a person, Saraswati’s would be that friend who orders one samosa and eats everyone else’s fries. With Operating Profit Margins near 98%, the company is a magician converting capital gains into PAT smoother than Amul butter.
Despite a YoY drop, the QoQ jump in EPS by over 150% shows how market-linked income swings. This is not a loan book — it’s an equity rollercoaster.
5. Valuation Discussion – Fair Value Range (Educational Purpose Only)
Let’s crunch some numbers:
CMP: ₹12,955
EPS (FY25): ₹173
P/E: 66x
Method 1: P/E Valuation If we assume a realistic NBFC P/E range between 20x (conservative) and 40x (optimistic), Fair Value Range = ₹3,460 – ₹6,920 per share.
Method 2: EV/EBITDA Approach EV = ₹1,384 Cr; EBITDA (FY25) ≈ ₹70 Cr → EV/EBITDA ≈ 19.7x A fair range for NBFCs (8–16x) gives an implied valuation of ₹560–₹1,120 Cr, or about ₹5,300–₹10,600 per share.
Method 3: DCF Simplified Assuming future PAT grows 10% CAGR for five years and discount rate 11%, intrinsic range works to roughly ₹5,000–₹8,000 per share.
📘 Fair Value Range (Educational Purpose Only): ₹5,000 – ₹8,000 per share Disclaimer: This fair value range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
If you ever thought NBFCs were dull, Saraswati’s corporate announcements would change your mind:
November 2025: Bought 6.78 lakh shares of Pine Labs worth ₹15 crore as an anchor
