🧵 At a Glance
Sarthak Global is a microcap nobody asked for. They began with equity investing, pivoted to inter-corporate deposits, then decided to become a SEBI-registered Share Transfer Agent — just to stay alive. With ₹7 Cr revenue in FY25, ₹3 lakh annual profit, and a stock trading at 212x earnings, this might be India’s first publicly listed intern.
1. 🪝 Hook: Why Is This Company Even Listed?
Sarthak Global has a ₹6 Cr market cap, ₹3 lakh profit, and P/E of 212. Let that sink in.
This stock is like that cousin who keeps switching careers, and yet nobody has the heart to tell him, “Bro, get a real job.”
2. 🧪 WTF Do They Even Do?
Once upon a time:
- 💰 They did fund-based investing (read: punting stocks).
- 💸 Then got into short-term loans (ICDs, unsecured advances).
- 📋 Now they are a Registrar & Share Transfer Agent, handling physical shares and backend processes for small firms in Central India.
So they’re sort of a back-office for listed companies… in a world that has moved to CDSL.
Their revenue streams:
- Agency income for RTA work
- Some odd trading income in commodities
- Other income = 95% of PBT 😂
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
| Metric | Value |
|---|---|
| FY25 Revenue | ₹7.23 Cr |
| FY25 Net Profit | ₹0.03 Cr (₹3 lakh) |
| ROE | 1.79% 😴 |
| ROCE | 6.43% |
| 5Y Sales CAGR | -40.8% 🚨 |
| 5Y PAT CAGR | -20% |
| TTM Profit Growth | 0% — flatline alert |
This isn’t a turnaround. It’s a turn-back-now.
4. 📊 Valuation – Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹21.2 |
| Book Value | ₹5.63 |
| P/B | 3.76x ❌ |
| P/E | 212x ❌❌❌ |
To justify this P/E, they’ll need to increase profit 20x. At current pace, that might take till 2080.
🎯 Fair Value Range: ₹5–₹10
Based on book value with 1x–2x P/B multiple (no earnings to value on PE basis)
5. 🍲 What’s Cooking – Any Drama, News, Triggers?
🗞️ FY25 audited results show ₹3 lakh net profit
🧾 Company says audit opinion is “unmodified” (probably because there’s nothing to modify)
📜 Continues to be exempt from RPT disclosures due to capital thresholds (read: too small to be required)
No capex, no M&A, no triggers. Just quietly existing.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| FY25 Snapshot |
|---|
| Total Assets |
| Equity Capital |
| Reserves |
| Borrowings |
| Investments |
| Fixed Assets |
Debt is 5x net worth. Reserves are still negative. This is not a balance sheet, it’s a cricket scorecard in a rain delay.
7. 🧮 Cash Flow – Sab Number Game Hai
| FY25 |
|---|
| CFO |
| CFI |
| CFF |
| Net Cash Flow |
They managed positive cash flow this year — mostly due to timing of receipts, not business growth.
8. 🔍 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 1.79% ❌ |
| ROCE | 6.43% |
| OPM | -3.18% ❌ |
| Interest Coverage | Weak |
| Working Capital Days | 788 Days ❌ |
Imagine needing 2 years to recover money in a business where your clients are mostly BSE-listed companies. Bruh.
9. 💸 P&L Breakdown – Show Me the Money
| FY | Revenue | Net Profit | EPS |
|---|---|---|---|
| FY23 | ₹2.91 Cr | ₹6 lakh | ₹0.20 |
| FY24 | ₹4.07 Cr | ₹2 lakh | ₹0.07 |
| FY25 | ₹7.23 Cr | ₹3 lakh | ₹0.10 |
The entire company’s PAT for 3 years is ₹11 lakh. That’s less than what a mid-level IT employee makes.
10. 🥊 Peer Comparison – Who Else in the Game?
| Company | P/E | Sales (Cr) | PAT (Cr) | ROE | Mcap (Cr) |
|---|---|---|---|---|---|
| Redington | 21x | ₹99,000 | ₹1,176 | 14.46% | ₹24,469 |
| MSTC | 19x | ₹311 | ₹196 | 24.16% | ₹3,776 |
| Sarthak Global | 212x | ₹7.2 | ₹0.03 | 1.79% | ₹6.3 |
No contest. Even Polo Queen looks like HUL compared to this.
11. 👨👩👧 Shareholding, Promoters, KMP
| Type | Mar 2025 |
|---|---|
| Promoter | 72.72% ✅ |
| Public | 27.28% |
| No. of Shareholders | 488 💤 |
No FIIs. No DIIs. No mutual fund radar. No coverage.
It’s a stock even bots skip on Screener.
12. 🧠 EduInvesting Verdict™
Sarthak Global is not a business. It’s a compliance hobby.
🟢 Pros:
- No fraud detected
- SEBI registered
- Clean-ish cash flows
- 3x in 3 years if you bought at ₹7 and got lucky
🔴 Cons:
- No profit growth
- Illiquid stock
- Valuation makes no sense
- Operating metrics are scary
- ₹3 lakh PAT. That’s the verdict.
💰 Fair Value Range: ₹5–₹10
Based on asset value + optionality. Definitely not a buy at ₹21 with 212 P/E.
✍️ Written by Prashant | 📅 July 3, 2025
Tags: Sarthak Global, microcap analysis, SME stocks India, share transfer agent company, SEBI registered RTA, BSE smallcaps, financial comedy, illiquid stocks, 212 P/E stock, EduInvesting
