1. At a Glance
A low-key, high-priced NBFC that’s quietly juggling securities, lending, and wild quarter swings. Almost debt-free, profitable, but allergic to dividends and attention. SCIL is a textbook case of “you blinked, and the EPS changed by 400%.”
2. Introduction with Hook
Imagine if Warren Buffett woke up one day, bought some steel tube IPO shares, then disappeared for three quarters. That’s Saraswati Commercial for you. One of the few NBFCs trading above ₹13,000 per share, this company has everything—crazy margins, mysterious losses, zero marketing, and a name that sounds like a coaching class.
- Market Cap: ₹1,532 Cr
- Stock Price (16 July 2025): ₹13,981
- EPS (FY25): ₹487
- P/E: 28.7
- Book Value: ₹8,755
- Dividend: 0%. Zilch. Nada.
3. Business Model (WTF Do They Even Do?)
SCIL is a non-deposit-taking NBFC, but not your usual EMI-chasing, loan-sanctioning machine. This one’s a mix of:
- Lending (Retail + Corporate)
- Investment in shares/securities (Both listed & unlisted)
- Categorized as a Middle Layer NBFC under RBI’s Scale-Based Regulation.
- Recent move: Invested ₹15 Cr in Sambhv Steel Tubes IPO as an anchor. Not bad for a firm with 3-digit Crore revenue.
There’s no physical product, no public loan scheme, and yet they’ve stayed afloat for decades by quietly compounding.
4. Financials Overview
Let’s call them moody profits with spreadsheet finesse.
FY25 Highlights:
| Metric | Value |
|---|---|
| Revenue | ₹75 Cr |
| Operating Profit | ₹70 Cr |
| OPM | 93% |
| Net Profit | ₹53 Cr |
| ROE | 6.47% |
| ROCE | 8.32% |
Past 3-Year EPS range: ₹213 to ₹1,008.93.
FY25 EPS? ₹487.36.
This company doesn’t grow in a straight line. It teleports.
5. Valuation
At ₹13,981, this looks expensive—until you realise it’s trading at just 1.6x Book Value and ~29x earnings.
Fair Value Range:
- Conservative DCF: ₹9,000
- P/E Method (25–35x FY25 EPS): ₹12,200 – ₹17,000
- NAV-Based Estimate: ₹10,500 – ₹14,000
Verdict: You’re either paying for stealth compounding or playing roulette on quarterly numbers.
6. What’s Cooking – News, Triggers, Drama
- Sambhv Steel Tubes IPO: SCIL invested ₹15 Cr at ₹82/share. Interesting move into manufacturing exposure.
- Management change: Rohit Kothari joins as Director with RBI approval.
- High Promoter Holding: 74%. Public float is wafer-thin.
- No dividend, no debt, but high conviction insider moves. This isn’t a momo stock—it’s a slow-burning fire.
7. Balance Sheet
| Item | Mar 2025 |
|---|---|
| Equity Capital | ₹1 Cr |
| Reserves | ₹958 Cr |
| Borrowings | ₹43 Cr |
| Other Liabilities | ₹91 Cr |
| Investments | ₹1,069 Cr |
| Total Assets | ₹1,093 Cr |
Key Points:
- Investments = 98% of asset base.
- Borrowings low; mostly equity-financed.
- No fixed assets. This is a true investment machine.
8. Cash Flow – Sab Number Game Hai
| Cash Flow Item | FY25 |
|---|---|
| Operating | ₹9 Cr |
| Investing | ₹-108 Cr |
| Financing | ₹120 Cr |
| Net Cash Flow | ₹20 Cr |
Key Points:
- Heavy investing activity (IPO + securities).
- Financing inflow possibly from asset sale or debt issue.
- Operations are positive but small compared to balance sheet heft.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 6.47% |
| ROCE | 8.32% |
| OPM | 93% |
| Debt/Equity | ~0.05 |
| P/BV | 1.6x |
| Working Capital Days | -5 |
Verdict:
Good margins. Weak return ratios. Solid balance sheet. But weird working capital signals and ultra-low efficiency drag the sex appeal down.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | Net Profit | OPM | EPS |
|---|---|---|---|---|
| FY23 | ₹24 Cr | ₹12 Cr | 87% | ₹113 |
| FY24 | ₹128 Cr | ₹104 Cr | 98% | ₹1009 |
| FY25 | ₹75 Cr | ₹53 Cr | 93% | ₹487 |
Trend:
- Revenues and profits bounce like a kangaroo on Red Bull.
- Still, profit margins are consistent.
- If you can stomach the ride, the rewards look juicy.
11. Peer Comparison
| Company | Price | P/E | ROE | Net Profit (TTM) | CMP / BV |
|---|---|---|---|---|---|
| Bajaj Finance | ₹922 | 34.4 | 19.2% | ₹16,664 Cr | 5.92x |
| Cholamandalam | ₹1,559 | 30.8 | 19.7% | ₹4,263 Cr | 5.54x |
| Saraswati Comm | ₹13,981 | 28.7 | 6.5% | ₹53 Cr | 1.60x |
Verdict:
You’re not buying a high-growth loan book here. You’re buying an investment firm disguised as an NBFC.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 74%
- Public Holding: 26%
- No. of Shareholders: ~3,100
- Dividend Policy: What dividend?
- Recent Action: Active in IPOs, board refresh, no debt raise despite asset growth.
13. EduInvesting Verdict™
Saraswati Commercial isn’t a stock. It’s a riddle wrapped in a spreadsheet inside an NBFC.
If you like:
- High-margin financials
- Buffett-style investing with volatility
- Undiscovered midcap value picks
- Zero investor calls and zero media noise
Then SCIL could be your guilty pleasure.
But beware:
- It’s unpredictable.
- No clear dividend policy.
- Growth comes in jerks, not trends.
This is not a wealth destroyer. But it’s also not a “set-it-and-forget-it” portfolio anchor.
Metadata
– Written by EduInvesting Team | 16 July 2025
– Tags: NBFC, Saraswati Commercial, IPO Investing, Deep Value, Weird EPS, Financials India
