🔍 At a Glance
Share India Securities Ltd is a tech-led brokerage and financial services company that’s gone from a sleepy SME listing to a ₹4,000 Cr mainboard fintech-ish rollercoaster. The company rode the retail boom like a meme stock, expanded into PMS, and acquired a buffet of companies — but now faces profit compression, a 52% promoter pledge, and stock price halving.
1. 🧩 Introduction with Hook
When broking stocks were flying post-COVID, Share India wasn’t just riding the rally — it was building the rocket engine.
- Stock went 10x between 2020–22
- Became a PMS license holder, Merchant Banker, algo broking boss
- Revenue grew from ₹453 Cr (FY21) → ₹1,483 Cr (FY24) → now plateauing
- But FY25 profits down 23%, and share price down ~50% from peak
The dream run paused. Now what?
2. 🏢 Business Model – WTF Do They Even Do?
🧾 Core businesses:
- Retail Broking: Equity, Commodity, Currency (primary revenue source)
- Algo Trading: Claims to be India’s algo king with ~75% trades algorithmic
- Mutual Fund Distribution
- Merchant Banking + PMS + NBFC: SEBI licenses acquired over time
- Recent Entry: Portfolio Management Services (May 2025)
💡 It’s trying to be a “tech + financial powerhouse” but still majority reliant on brokerage volumes.
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 453 | 862 | 1,088 | 1,483 | 1,449 |
| Net Profit (₹ Cr) | 81 | 202 | 331 | 426 | 328 |
| ROE (%) | 24% | 57% | 52% | 38% | 16% |
| OPM (%) | 29% | 35% | 45% | 44% | 36% |
🧠 FY25 is a wake-up slap: volumes down, costs up, earnings drop 23%.
4. 📉 Valuation – Is It Cheap, Meh, or Crack?
- P/E: 12.1x – Low vs peers like Angel (21x), Nuvama (26x), 360 One (46x)
- P/B: 1.69x – Attractive
- Dividend Yield: 0.99%
- Fair Value Range: ₹210–₹240
🧮 Based on normalized FY26E EPS of ₹18–20 and a P/E band of 12–13x. Cheap? Yes. Clean? Eh, keep reading.
5. 🍿 What’s Cooking – News, Triggers, Drama
- 🆕 SEBI approved PMS license in May 2025
- 💰 ₹100 Cr NCD issuance (10.7–10.75% coupon) in June 2025
- 🧩 Acquisitions galore:
- Silverleaf Securities
- 4.95% in Metropolitan Stock Exchange (MSE)
- DSM Fresh Foods (later rescinded)
- 💼 Multiple new subsidiaries approved in 2024
🕵️ But promoter pledging + profit slump + cash flow issues = not-so-smooth cooking.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Total Assets | ₹3,780 Cr |
| Borrowings | ₹513 Cr |
| Reserves | ₹2,290 Cr |
| Equity Capital | ₹44 Cr |
| Net Worth | ₹2,334 Cr |
| Promoter Pledge | 🚨 52.9% of promoter stake pledged |
📉 High pledging and rising debt don’t pair well with falling profits.
7. 💸 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF (Est.) |
|---|---|---|
| FY23 | -₹170 Cr | Negative |
| FY24 | -₹310 Cr | Deep negative |
| FY25 | ₹6 Cr | LOL recovery attempt |
🧠 Three straight years of negative or anaemic cash flow — a red flag for a “tech-enabled” financial firm.
8. 📊 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 20.7% |
| ROE | 16.1% |
| OPM | 36% |
| Working Capital Days | -132 |
| Cash Conversion | 8 days |
| EPS (FY25) | ₹15.01 |
⚠️ Ratios trending downward. ROE dropped from 38% to 16% in one year.
9. 💵 P&L Breakdown – Show Me the Money
- Profit peaked in FY24 at ₹426 Cr
- Slid to ₹328 Cr in FY25
- OPM compression from 45% → 36%
- Q4FY25: Only ₹19 Cr PAT, lowest in 10 quarters
📉 Revenue fatigue is real; growth has stalled, and the cost of expansion is catching up.
10. 🤼 Peer Comparison – Who Else in the Game?
| Company | Mkt Cap | P/E | ROE | ROCE | OPM |
|---|---|---|---|---|---|
| Angel One | ₹25,136 Cr | 21.5x | 27.1% | 25.8% | 37.9% |
| IIFL Capital | ₹10,784 Cr | 15.1x | 33.2% | 34.6% | 41.5% |
| Nuvama | ₹26,143 Cr | 26.5x | 30.9% | 20.4% | 53.3% |
| Share India | ₹3,961 Cr | 12.1x | 16.1% | 20.7% | 36% |
🧠 Clearly trades cheap — but also clearly underperforming.
11. 🧮 Miscellaneous – Shareholding, Promoters
- Promoters: Down from 53% → 48.67% in 2 years
- Pledge: 52.9% of promoter holding pledged 😬
- Public Holding: 48.39%
- FII/DII: Still negligible
- Shareholders Count: Jumped from 18K (2022) to 70K+ (2025)
👀 Retail trapped at higher levels? Stock down 50% from highs of ₹345.
12. 🧑⚖️ EduInvesting Verdict™
Share India looked like a breakout fintech story — algo-backed, revenue-packed, and expansion-hungry.
But FY25 exposed its soft spots:
- Negative cash flows
- Profit compression
- Pledged promoter equity
- Deteriorating ROEs
✅ Still cheap vs peers
✅ Aggressive DNA, strong history
⚠️ But high risk if FY26 doesn’t rebound
FV Range: ₹210–₹240
💡 If Angel One is the NSE-broking IITian, Share India is the DU dude who made it big hustling but may or may not have an income tax notice waiting.
✍️ Written by Prashant | 📅 July 6, 2025
Tags: Share India, Broking Stocks, Algo Trading, Fintech, Smallcap, Portfolio Management, Promoter Pledge
