1. At a Glance – The One-Minute “What Even Is This?” Summary
Shreevatsaa Finance & Leasing Ltd is a ₹26.4 Cr market cap NBFC trading at ₹26.1 per share, which already tells you half the story — this is not a Silicon Valley unicorn, it’s more like a disciplined baniya ledger book with a stock ticker. The company is debt-free, has a book value of ₹22.8, and trades at 1.14× P/B, which sounds reasonable until you notice the P/E of ~52× paired with a ROE of just ~2%. Yes, you read that right — Ferrari valuation, scooter returns.
In Q3 FY26, revenue came in at ₹0.24 Cr, PAT at ₹0.17 Cr, with QoQ profit down 15% but sales still growing at a modest 4.35% QoQ. Operating margins are hilariously high at ~62%, not because this is a super-tech moat business, but because when your cost base is almost zero, even a small interest income looks like peak efficiency.
Promoters hold a solid 75%, with zero pledge, zero debt, and zero drama. Over the last 5 years, the stock has delivered a 38% CAGR, which ironically has far outpaced the business growth itself. So the real question is: Is this a sleepy compounding finance play… or just a well-dressed balance sheet with limited ambition?
2. Introduction – Welcome to the Museum of Capital Preservation
Shreevatsaa Finance & Leasing Ltd was incorporated in 1983, which means this company has survived Harshad Mehta, Ketan Parekh, IL&FS, DHFL, Yes Bank, crypto winters, meme stock summers, and still wakes up every morning saying, “Let’s not do anything stupid today.”
This is a Non-Systematically Important, Non-Deposit Taking NBFC, registered with the RBI. Translation: small, quiet, regulated, and not allowed to blow itself up even if it wanted to. The company focuses on loans & advances, investment in shares and mutual funds, and financial advisory services, including company law and financial management.
Revenue is boring by design. In FY22, ~91% came from interest on loans, ~5% from bank FDs, and ~4% from
sale of shares. No fancy fintech apps, no AI-powered lending, no IPL sponsorships. Just capital, deployed conservatively, earning modest interest, and coming back home safely.
But here’s the paradox: despite being stable, debt-free, and profitable, the company generates ROE of only ~2%. That’s not “wealth creation,” that’s “wealth preservation with tea biscuits.”
So why does the market still give it a 52× P/E? Liquidity scarcity? Optionality? Promoter credibility? Or just the classic Indian microcap phenomenon where price moves faster than fundamentals?
Before we judge, let’s open the books — carefully, like a CA opening a dusty old file.
3. Business Model – WTF Do They Even Do?
Imagine a finance company whose life goal is not to appear on business news channels. That’s Shreevatsaa.
The business model has five pillars:
- Loans & Advances – The core activity. Small, controlled lending with minimal risk appetite.
- Trading in Shares & Mutual Funds – Occasional capital market exposure, not YOLO trading.
- Investment Consultancy – Advisory income, likely relationship-based.
- Company Law & Financial Management Services – Old-school professional services.
- Treasury Parking – Excess funds kept in bank FDs, because safety > thrill.
There is no aggressive AUM expansion, no branch network growth, and no evidence of leverage-driven scaling. The company runs more like a family office with a listed wrapper than a growth NBFC.
Operating margins are high (50–65%) because:
- No heavy infrastructure
- No borrowing costs
