1. At a Glance
Revenue down 31.6% YoY, profit nosedives 47%, yet ROCE still punches in at a sexy 32.6%. Promoters are back, stake up by 4.86%, and they’ve renamed their CTO to CTSO. No kidding.
2. Introduction with Hook
Imagine if Zerodha, Angel One, and a slightly confused family office had a child in Indore — you’d get Swastika Investmart. It’s a one-stop hybrid: broking app, insurance arm, algo trading suite, startup mentoring, and an EdTech vertical because why not?
- Revenue Q1 FY26: ₹26.3 Cr (vs ₹38.5 Cr YoY) → -31.65%
- Net Profit Q1 FY26: ₹3.29 Cr (vs ₹6.27 Cr YoY) → -47.53%
- JustTrade app, HelloPolicy.com, Venture capital biz, and SME IPO advisory all under one chhatri.
3. Business Model (WTF Do They Even Do?)
8-in-1 FinHub Model:
- Stock Broking → Mobile App JustTrade 2.0
- Tradingo Web Platform → Commodities, Forex
- Investment Banking → SME IPOs, M&As
- Algo & HFT Trading → Retail + Institutions
- Loan against Securities → Low-cost credit
- Insurance Distribution → HelloPolicy portal
- EdTech arm → Financial learning
- Startup Funding + Mentoring
They’re like the Swiss Army Knife of Capital Markets — only with a slightly duller blade in Q1 FY26.
4. Financials Overview
| Metric | Value |
|---|---|
| TTM Revenue | ₹128 Cr |
| TTM PAT | ₹17 Cr |
| Market Cap | ₹219 Cr |
| EPS TTM | ₹11.08 |
| ROE | 20.7% |
| ROCE | 32.6% |
| OPM | 24% |
Growth track record (5Y):
- Revenue CAGR: 22%
- Profit CAGR: 95%
- EPS CAGR: Bonkers
But Q1 FY26 → Performance = Thanda
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹126 |
| P/E | 12.9x |
| Book Value | ₹64.8 |
| P/B | 1.95x |
| Market Cap | ₹219 Cr |
Fair Value Estimate Range:
- P/E Method (10x–15x): ₹111 – ₹167
- P/BV Method (1.5x–2.2x): ₹97 – ₹142
- ROE-based DCF (20% ROE, 10% CoE): ₹115 – ₹135
EduInvesting FV Range™: ₹110 to ₹140
CMP is at lower band = Possible accumulation zone, but beware falling topline.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 = Weak.
- Promoters increased stake via preferential warrants → +4.86%
- Issued 27.85 lakh shares at ₹62.2/share
- CTO became CTSO (Cybersecurity) – Clearly a focus shift
- Chief Growth Officer resigned – Hmm.
- Sold 70% stake in a subsidiary = loss of control
- BSE listing approval received for preferential allotment
Upcoming Triggers:
- Revival of Tradingo and JustTrade usage metrics
- SME IPO pipeline
- Policy push for retail investor inclusion = tailwind
7. Balance Sheet
| Metric | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 3 |
| Reserves | 109 |
| Borrowings | 5 |
| Other Liabilities | 234 |
| Total Liabilities | 352 |
| Fixed Assets | 4 |
| Investments | 8 |
| Other Assets | 339 |
Insights:
- Debt-light structure
- Asset-light operations
- Investments are minimal → mostly operational balance sheet
- Zero CWIP = No planned infra expansion
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹-20 Cr | ₹10 Cr | ₹-1 Cr | ₹-11 Cr |
| FY24 | ₹-22 Cr | ₹11 Cr | ₹9 Cr | ₹-3 Cr |
| FY25 | ₹-20 Cr | ₹20 Cr | ₹-5 Cr | ₹-5 Cr |
Cash Flow Commentary:
- Consistently negative operating cash flow
- Cash burn = alarming for a finance company
- Likely a mix of client margin churn + digital infra cost
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 32.6% |
| ROE | 20.7% |
| OPM | 24% |
| EPS | ₹11.08 |
| Debt/Equity | 0.04 |
| Debtor Days | 68 |
Verdict: Sexy
But only if they stop tripping on their own income statement.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT | EPS | OPM |
|---|---|---|---|---|---|
| FY22 | ₹83 Cr | ₹17 Cr | ₹10 Cr | ₹6.80 | 20% |
| FY23 | ₹88 Cr | ₹12 Cr | ₹6 Cr | ₹4.16 | 13% |
| FY24 | ₹115 Cr | ₹24 Cr | ₹12 Cr | ₹8.30 | 21% |
| FY25 | ₹141 Cr | ₹35 Cr | ₹20 Cr | ₹11.49 | 25% |
| TTM | ₹128 Cr | ₹31 Cr | ₹17 Cr | ₹11.08 | 24% |
11. Peer Comparison
| Company | Mkt Cap (Cr) | P/E | ROCE | OPM | EPS | PAT Qtr |
|---|---|---|---|---|---|---|
| Angel One | ₹25,403 | 25.6 | 25.8% | 35.9% | ₹114.4 | ₹114.47 Cr |
| Share India | ₹3,813 | 11.6 | 20.7% | 35.7% | ₹18.64 | ₹18.64 Cr |
| Monarch Networth | ₹3,047 | 20.4 | 33.2% | 66.3% | ₹24.7 | ₹24.7 Cr |
| Swastika | ₹219 | 12.9 | 32.6% | 24.0% | ₹11.08 | ₹3.29 Cr |
Commentary:
For a microcap, Swastika punches well above its weight in profitability metrics. But scale is tiny. They’re playing in the Angel One stadium with a tennis racket.
12. Miscellaneous – Shareholding, Promoters
| Holder | % (Jun 2025) |
|---|---|
| Promoter | 59.88% (up from 55.02%) |
| FII | 0.00% |
| Public | 40.13% |
| No. of Shareholders | 5,078 |
Interesting:
- Promoters buying back → Confidence booster
- No FII/Institutional interest yet
- Preferential allotment of 27.85 lakh shares → Dilutive, but used for growth
13. EduInvesting Verdict™
Swastika Investmart is Ambitious AF — broking app, lending biz, VC support, EdTech, algo trading, SME IPOs — all on one plate. But Q1 FY26 stumbled like an intern carrying chai during budget day.
Promoters increasing stake = green flag.
Negative cash flow = yellow flag.
Topline drop = red flag.
EduInvesting Verdict™:
Potential fintech phoenix or confused octopus? Jury’s out. Monitor next 2 quarters like SEBI watches Telegram pump-n-dump channels.
Metadata
– Written by EduInvesting Team | July 23, 2025
– Tags: Swastika Investmart, Broking, SME IPOs, JustTrade, EdTech, Microcap
