1. At a Glance – Small Cap, Big Leverage, Bigger Questions
₹165 crore market cap.
₹1,523 crore total assets.
₹1,264 crore borrowings.
Stock price: ₹25.5.
Book value: ₹35.9.
Price to Book: 0.71.
Dividend yield: 3.14%.
Q3 FY26 EPS: ₹0.58.
TTM EPS: ₹2.51.
P/E: 10.2.
Return in 3 months: -35.9%.
Return in 1 year: -46.8%.
Ladies and gentlemen, welcome to the financial gym where Sakthi Finance Ltd is bench-pressing leverage like it’s a district-level powerlifting competition.
This is a 70-year-old NBFC trading below book value, offering dividends, and still somehow managing a Debt-to-Equity of 5.45. The stock has corrected brutally over the past year, but profits are still ticking along at ₹3.75 crore in Q3 FY26.
The big question:
Is this a deeply discounted old-school lending franchise?
Or is the market quietly pricing in risk that retail investors haven’t fully digested yet?
Let’s investigate.
2. Introduction – The Veteran Lender from Coimbatore
Incorporated in 1955, Sakthi Finance is not some Gen-Z fintech app promising “instant approval in 2 minutes.” This is a traditional NBFC from the Sakthi Group, operating largely in South India — Tamil Nadu, Kerala, Andhra Pradesh, and Karnataka.
It focuses primarily on used commercial vehicle (CV) financing.
Not flashy.
Not glamorous.
Not trendy.
Just old-school lending to truck owners and transport operators.
It is classified as an NBFC – Middle Layer and is also a deposit-taking systemically important NBFC. That means regulations are tighter, compliance is heavier, and liquidity management becomes serious business.
The company follows:
- Branch-centric model
- In-house origination teams
- Centralised credit sanctions
- Bureau checks
- Field investigation
- Income assessment
Basically, they don’t hand out loans like wedding sweets. They do homework.
But here’s the twist:
In 2023, they restarted accepting fresh deposits. In 2024–2025, they issued and redeemed multiple NCDs.
This is a company constantly managing liabilities.
And in lending, if liabilities get nervous, equity holders get sleepless.
So how stable is the machine?
3. Business Model – WTF Do They Even Do?
Let’s simplify.
If you own a used truck and need money, Sakthi Finance might fund it.
As of September
