1. At a Glance – When Your Investments Are Bigger Than Your Market Cap
Shardul Securities Ltd (SSL) is one of those rare Dalal Street creatures where the balance sheet looks richer than the stock price’s self-esteem. With a market cap of ~₹263 Cr and investments worth ~₹590 Cr, the company is literally trading cheaper than the value of assets it already owns. The stock is hovering around ₹30, down sharply over the last year, while price-to-book sits at ~0.35 — a level that screams either “hidden value” or “market doesn’t trust you, bro.”
Latest Q3 FY26 (Dec 2025) results show sales of -₹13.1 Cr and PAT of -₹17.3 Cr, continuing the tradition of wild quarterly mood swings. One quarter they mint money, the next quarter they burn it like a Diwali bonfire. Add to this a failed delisting attempt, frequent board reshuffles, and inconsistent profitability — and you’ve got a stock that keeps forensic accountants, value hunters, and Twitter trolls equally entertained.
So… is this a deep-value cigar butt, or a balance-sheet mirage with governance seasoning? Let’s dig.
2. Introduction – Old NBFC, New Identity Crisis
Incorporated in 1985, Shardul Securities is not some fly-by-night fintech startup. It has survived multiple market cycles, Harshad Mehta, Ketan Parekh, Lehman, Covid, meme stocks — you name it. Originally focused on lease finance, policy changes nudged it toward investment banking, broking, and treasury-style investment activities.
Today, SSL is a Non-Systematically Important, Non-Deposit Taking NBFC, which in simple words means:
- No retail deposits
- No RBI babysitting every quarter
- More freedom, but also more responsibility
The company operates like a family-run investment office with a listed wrapper, dealing in equities, bonds, mutual funds, derivatives, IPO funding, and even earning rental and dividend income. Revenue doesn’t come from selling toothpaste or cement — it comes from market timing, capital allocation, and financial judgment.
And therein lies the problem. When markets cooperate, SSL looks like a genius. When
markets sneeze, SSL catches pneumonia.
3. Business Model – WTF Do They Even Do?
Think of Shardul Securities as a mini proprietary investment house + broking arm.
Core Activities:
- Investments in equities, mutual funds, bonds, bullion
- Trading in derivatives (F&O)
- IPO funding & loan syndication
- Treasury operations (T-Bills, CPs, CDs, G-Secs)
- Rental income from properties
- Dividend harvesting
They also operate a 100% subsidiary — Shriyam Broking Intermediary Ltd, which handles broking in equities, bonds, and derivatives.
There is no sticky customer moat, no FMCG brand recall, no long-term order book. Earnings depend heavily on:
- Market volatility
- Investment decisions
- Timing of exits
- Interest rate cycles
Basically, SSL’s business model works best when management behaves like Warren Buffett and markets behave nicely. Unfortunately, quarterly numbers suggest more trader DNA than allocator DNA.
4. Financials Overview – Rollercoaster Quarterly Maths
Quarterly Comparison (₹ Cr)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | -13.1 | -33 | -39 | +60% | +66% |
| EBITDA | -17 | -38 | -44 | +55% | +61% |
| PAT | -17.3 | -40 | -38 | +56% | +55% |
| EPS (₹) | -1.97 | -4.56 | -4.40 | +57% | +55% |
Commentary:
Yes, growth looks “positive” — but only because losses reduced. This is not turnaround; this is less bleeding. EPS has swung from +₹8.04 (Jun’25) to -₹1.97 (Dec’25) within six months. Stability has left the chat.
Ask yourself: Can you value a company whose earnings behave like crypto charts?
5. Valuation Discussion – Cheap
