🔍 At a Glance
Share Samadhan Ltd helps people recover forgotten financial assets—like old shares, PFs, bonds, and dividend money. It’s a ₹92 Cr SME stock that tripled revenue in 2 years and maintained high ROCE at ~22%. But there’s a catch: debtor days are a shocking 218, and CFO is negative. With zero dividend, rising public holding, and P/E of 29x, the question is—has the market overpaid for nostalgia recovery?
🧩 1. WTF Do They Even Do?
Think of Share Samadhan as the finance CBI. They:
- Track down lost or unclaimed investments: old shares, MF units, PF accounts, ULIPs, bonds, even forgotten bank balances 💼
- Help with transmission (after death), legal recovery, KYC hurdles
- Offer B2B + B2C services to:
- Individuals
- HNIs
- Institutions like NBFCs, banks
It’s a niche business. Not glamorous, but very real.
📊 2. Financials – Profit, Margins, ROE
| Metric | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 2.42 | 2.76 | 9.83 | 14.44 🚀 |
| EBITDA (₹ Cr) | 0.59 | 0.78 | 5.5 | 4.9 |
| PAT (₹ Cr) | 0.61 | 0.48 | 4.05 | 4.06 |
| OPM (%) | 24% | 28% | 56% | 34% |
| ROE (%) | – | 13% | 22% | 14% ⬇️ |
🧠 Interpretation:
- Revenue grew ~6x in 3 years
- PAT flat in FY25 = cost pressures or plateau?
- OPM halved YoY = need to watch
💸 3. Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹75 |
| Market Cap | ₹92 Cr |
| EPS (FY25) | ₹2.57 |
| P/E | 29.2x 😬 |
| P/B | 2.64x |
| Book Value | ₹28.4 |
EduFair Value Estimate:
- Assume EPS of ₹2.5 and assign P/E band of 15–20x (due to working cap risk)
➡️ Fair Value Range = ₹37 – ₹50
Current valuation is pricing in 2 years of clean growth. But debtor days and cash flow don’t agree.
🍿 4. What’s Cooking – News, Triggers, Drama?
✅ FY25 PAT steady at ₹4 Cr
✅ Revenue up 47%
✅ Public shareholding up to 35%
✅ Clean audit reports
⚠️ Operating cash flow negative ₹1.65 Cr
⚠️ Debtor days at 218 = serious receivable lag
⚠️ FII holding fell sharply from 6.56% to 0.55%
🏦 5. Balance Sheet – How Much Debt, How Many Dreams?
| Year | Equity | Reserves | Borrowings | Total Assets |
|---|---|---|---|---|
| FY22 | ₹1.1 Cr | ₹2.0 Cr | ₹0.6 Cr | ₹4.26 Cr |
| FY24 | ₹9.0 Cr | ₹2.27 Cr | ₹0.9 Cr | ₹14.22 Cr |
| FY25 | ₹12.3 Cr | ₹22.6 Cr | ₹0.5 Cr | ₹40.1 Cr |
🧠 Points to note:
- Strong reserve growth = retained earnings
- Debt-free practically (✅)
- Balance sheet 10x in 3 years = rapid scale
💰 6. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹1.84 Cr | ₹(2.01) Cr | ₹(0.02) Cr | ₹(0.19) Cr |
| FY24 | ₹0.29 Cr | ₹0.53 Cr | ₹3.94 Cr | ₹4.77 Cr |
| FY25 | ₹(1.65) Cr | ₹(4.58) Cr | ₹20.5 Cr | ₹14.3 Cr |
🚨 Negative operating cash flow
🚧 Receivables choking free cash
📥 Cash balance propped up by IPO
📏 7. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 13.6% |
| ROCE | 21.9% |
| OPM | 34% |
| NPM | 28.1% |
| Debt/Equity | 0.04x ✅ |
| Debtor Days | 218 days 🥴 |
The business is efficient on paper, but when your client takes 7 months to pay you, even 100% margin is fake.
📈 8. P&L Breakdown – Show Me the Money
| Metric | FY25 |
|---|---|
| Revenue | ₹14.4 Cr |
| EBITDA | ₹4.9 Cr |
| Depreciation | ₹0.21 Cr |
| Interest | ₹0.01 Cr |
| PBT | ₹5.41 Cr |
| PAT | ₹4.06 Cr |
- 0% finance cost = great
- But PBT to PAT conversion slowed (tax rate up)
- Growth in topline not translating 1:1 to net profit
🧊 9. Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM | Mcap |
|---|---|---|---|---|
| Share Samadhan | 29x | 13.6% | 34% | ₹92 Cr |
| CRISIL | 62x | 27.8% | 28% | ₹43,819 Cr |
| Wealth First | 38x | 28.5% | 76% | ₹1,335 Cr |
| Algoquant | 49x | 37.5% | 20.5% | ₹1,579 Cr |
🧠 Peer multiples are high—but they have:
- Better scale
- Real cash flow
- Institutional reputation
Share Samadhan = early-stage, niche, and fragile
👥 10. Shareholding – Promoters, FIIs, Retail
| Holder | Mar ’25 |
|---|---|
| Promoters | 62.52% |
| FIIs | 0.55% 🔻 from 6.56% |
| DIIs | 1.58% |
| Public | 35.36% 🔺 |
🧠 FII exodus post-IPO = 🚩
Retail public getting in = 📈
Promoters stable (no dilution yet)
🧠 EduInvesting Verdict™
Share Samadhan: Helping Indians reclaim dead relatives’ shares while investors wonder if their own shares need rescuing.
✅ Strong revenue growth
✅ High margins, no debt
⚠️ Cash flow negative
⚠️ Receivables ballooning
⚠️ P/E rich at 29x for this model
It’s not a scam. But it’s definitely priced like one big RTA deal will change the game. Can it?
🎯 EduFair Value: ₹37 – ₹50 range
Current CMP: ₹75 = Fully valued, bordering speculative
No buy/sell reco. Just like the lost dividends they hunt, investor optimism can also vanish without trace.
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Share Samadhan, SME IPO, Investment Recovery, Niche Financial Services, EduInvesting, High Receivables Stocks
