1. At a Glance
SG Finserve, formerly Moongipa Securities, has gone from “basically dead” to “decent NBFC” real quick. Q1 FY26 PAT came in at ₹24.52 Cr — a 900x jump over its ghost-town days in 2022. AUM? ₹2,630 Cr. This isn’t just a turnaround — it’s a rebirth on caffeine.
2. Introduction with Hook
Remember that guy from school who disappeared after 10th grade and then returned two years later with abs, a startup, and 50K Instagram followers?
Meet SG Finserve.
- Business shut down pre-2022.
- Restarted Sept 1, 2022.
- FY25 PAT: ₹86 Cr.
- Q1 FY26 PAT alone: ₹24.52 Cr
- AUM: ₹2,630 Cr (up 13% QoQ)
From nothing to NBFC heat in two years flat.
3. Business Model (WTF Do They Even Do?)
Current biz: Channel Financing
SG Finserve offers short-term loans (10–13% IRR) to:
- Distributors
- Dealers
- Retailers
- Buyers linked to Indian corporates
It’s a niche, B2B-heavy model that avoids retail loan drama (aka NPA circus). Think of it as “OEM-finance-as-a-service.”
They’re also expanding into:
- Insurance
- Wealth management
- Investment research (again)
But main moolah = lending to SME ecosystems
4. Financials Overview
FY25 Snapshot (₹ Cr)
| Metric | FY25 |
|---|---|
| Revenue | ₹171 |
| PAT | ₹81.5 |
| Net Interest Income (FY26 Q1) | ₹68 Cr (YoY: 95%) |
| ROE | 9% |
| AUM | ₹2,630 Cr |
| EPS (TTM) | ₹13.46 |
Margins are solid (50%+), scale is coming, and defaults? So far, MIA.
5. Valuation
Do the math (so you don’t have to):
- CMP: ₹413
- TTM EPS: ₹13.46 → P/E: ~31x
- Book Value: ₹154 → P/B: 2.68x
- Market Cap: ₹2,724 Cr
- ROE: 8.89%
Fair Value Range:
- Base case (20x P/E): ₹250–280
- Optimistic (30x P/E & ROE improves): ₹380–440
Is it cheap? No.
Is it a growth trap? Also no.
6. What’s Cooking – News, Triggers, Drama
Recent buzz:
- Q1 PAT: ₹24.52 Cr (up 26% QoQ)
- AUM grew 13% QoQ
- New ESOP plan approved
- Company secretary resigned (meh)
- Re-appointed Asha Agarwal as Independent Director
- S.P. Chopra & Co. brought in as auditors
Key triggers:
- Higher disbursement volumes
- Credit rating upgrades from ICRA, CRISIL (2025)
- Strong NIMs (50%+) without asset stress
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹56 Cr |
| Reserves | ₹959 Cr |
| Borrowings | ₹1,385 Cr |
| Total Liabilities | ₹2,416 Cr |
| Total Assets | ₹2,416 Cr |
| Investments | ₹80 Cr |
| Fixed Assets | ₹2 Cr |
Strong liability management. Assets are almost fully tied to business lending, no real estate hoarding or fishy “other” assets.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net CF |
|---|---|---|---|---|
| FY23 | -₹941 | ₹2 | ₹1,030 | ₹91 |
| FY24 | -₹565 | -₹1 | ₹552 | -₹14 |
| FY25 | -₹456 | -₹81 | ₹521 | -₹16 |
Translation:
CFO is negative because it’s a lending biz (increase in loans = outflow).
Financing flow is healthy. Balance sheet matches actual lending cycles.
9. Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROE | 8.89% | Fair for NBFC scale |
| ROCE | 6.83% | Room to grow |
| Gross NPA | Not disclosed | Suspicious silence |
| P/E | 31.6x | Priced for growth |
| Capital Adequacy | Not reported yet | Needs tracking |
Bottom Line: No red flags, but transparency still catching up.
10. P&L Breakdown – Show Me the Money
Q1 FY26 (₹ Cr)
| Metric | Value |
|---|---|
| Revenue | ₹68 |
| Interest Exp. | ₹25 |
| Operating Profit | ₹34 |
| Net Profit | ₹24.52 |
| Financing Margin % | 50%+ |
Loan book is generating serious NII. That’s a solid P&L for a “newly resurrected” firm.
11. Peer Comparison
| Company | CMP (₹) | P/E | ROE % | MCap (Cr) | AUM (₹ Cr est.) |
|---|---|---|---|---|---|
| Bajaj Finance | 952 | 35.5 | 19.2 | 5.9L Cr | ~2.7L Cr |
| Shriram Finance | 640 | 14.7 | 15.6 | 1.2L Cr | ~1.1L Cr |
| Muthoot Finance | 2674 | 20.1 | 19.6 | 1.0L Cr | ~60K Cr |
| SG Finserve | 413 | 31.6 | 8.89 | ₹2,724 Cr | ₹2,630 Cr |
Takeaway: Underdog with momentum, but miles away from the big boys.
12. Miscellaneous – Shareholding, Promoters
| Category | Sep 2022 | Jun 2025 | Change |
|---|---|---|---|
| Promoters | 73.05% | 48.38% | -24.7% (Ouch) |
| Public | 26.95% | 47.07% | +20% (Retail FOMO) |
| DIIs | 0% | 4.44% | Positive signal |
| No. of shareholders | 584 | 30,921 | 50x in 3 yrs |
Massive promoter selling (perhaps funding lending biz?) + retail flood = stock volatility alert
13. EduInvesting Verdict™
SG Finserve is not your usual NBFC. It’s:
- Young, lean, and profitable
- Focused on SME channel financing — a niche segment
- Transparent-ish but still maturing on disclosures
- AUM growth + high NIMs = textbook scale play
But…
- Promoter sell-off
- Zero dividends
- Glaring silence on NPAs
Verdict?
SG Finserve is like a startup disguised as a listed company.
If it keeps up 20–25% AUM growth without asset quality surprises — we could be staring at a ₹5,000 Cr MCap story.
Until then: admire from a safe distance… or ride the wave if you like drama.
Metadata
– Written by EduInvesting Team | 23 July 2025
– Tags: SG Finserve Ltd, NBFC, Channel Financing, SME Lending, Q1 FY26, AUM Growth, Fintech Revival, Moongipa Rebirth
