At a Glance
Standard Capital Markets Ltd (SCML), the NBFC nobody had on their bingo card, just dropped Q1 FY26 numbers that made even seasoned investors do a double take. The ₹0.62 stock, once trading like a neglected penny, posted a net profit of ₹14.8 Cr, a 748% jump YoY, while revenue skyrocketed to ₹58.5 Cr. For a company that was coughing dust in 2022, this turnaround screams, “Who needs fundamentals when you have sheer audacity?” But wait, before you mortgage the house, promoter holding has shrunk to a jaw-dropping 9.58%, raising eyebrows higher than a Dalal Street coffee bill. Is this a Cinderella story or a pump-and-dump party in disguise? Let’s rip this apart.
Introduction
Imagine a company that spent most of its corporate life as a side note in NBFC history, suddenly waking up and saying, “Let’s do a Bajaj Finance cosplay.” SCML’s journey from years of irrelevant revenue to triple-digit profit growth reads like a Bollywood underdog script – minus the love interest, but with enough drama to keep traders hooked.
Promoter holding? Dropping like hot pakoras in monsoon – from 17% last year to single digits now. ROE? Hanging around 11%, not exactly heroic, but hey, at least it’s not negative. The stock is at 0.3x book value, meaning even the market hasn’t yet decided if this story is legit or just another NBFC soap opera.
The latest results may make you want to scream “multibagger incoming,” but keep the champagne corked – the balance sheet hides a few skeletons.
Business Model (WTF Do They Even Do?)
Standard Capital Markets is classified as an NBFC-ICC – fancy talk for “we lend money, invest in stuff, and hope we don’t blow up like a crypto exchange.” Unlike the big boys (Bajaj, Shriram, Muthoot), SCML doesn’t have brand recognition or diversified portfolios. Instead, it thrives on high-risk lending and strategic investments, often in unglamorous sectors.
The company’s bread and butter is interest income, investment gains, and the occasional asset reshuffle. It doesn’t take deposits (so no, your FD is safe), and it’s “non-systemically important,” meaning RBI won’t send SWAT teams if it trips. The business model is simple: borrow, lend, invest, repeat – just with a lot more volatility than comfort.
Financials Overview
Q1 FY26 looked like SCML took steroids. Revenue jumped 627% YoY to ₹58.5 Cr. Expenses stayed surprisingly low, leading to an Operating Profit of ₹53 Cr with a juicy OPM of 91%. Net profit clocked at ₹14.8 Cr versus a loss not so long ago. EPS? A modest ₹0.06 – tiny, but remember this is a ₹0.62 stock.
Annual FY25 showed sales of ₹90 Cr, PAT ₹28 Cr, and EPS ₹0.16. PAT margin is still above 20%, which is fat for an NBFC at this scale. Growth has been insane: 5-year PAT CAGR 327%, revenue CAGR 202%.
Colourful Commentary: Imagine a Maruti 800 suddenly outrunning a Ferrari – that’s SCML right now. But question remains: how long before the engine overheats?
Valuation
1. P/E Method
- Latest EPS (Q1 FY26) = ₹0.06 → Annualized = ₹0.24
- CMP = ₹0.62
- P/E = 0.62 / 0.24 ≈ 2.6x
For a sector where peers trade at 15–30x, SCML looks like a clearance sale.
2. EV/EBITDA
- FY25 EBITDA ≈ ₹76 Cr
- EV ≈ Market Cap ₹152 Cr + Debt ₹1134 Cr – Cash ₹24 Cr = ₹1262 Cr
- EV/EBITDA ≈ 16.6x → Ouch, leverage bites.
3. DCF (Loose)
- Assume PAT growth slows to 25% CAGR, discount rate 12%, terminal growth 3%.
- Fair Value Range: ₹1.2 – ₹1.8
Conclusion: Cheap on P/E, scary on EV/EBITDA. A cocktail for thrill-seekers.
What’s Cooking – News, Triggers, Drama
- Partial NCD redemption: Paid ₹30.7 Cr, outstanding ₹1,685 Cr. Debt remains a mountain.
- Promoter exit trend: Down to 9.58%, signaling either dilution or “every man for himself.”
- Volume spikes: Retail is piling in, smell of speculation in the air.
- Upcoming Q2: Street eyes if this quarter was fluke or new normal.
Balance Sheet (Standup Edition)
| Assets | ₹ Cr |
|---|---|
| Total Assets | 1,751 |
| Fixed Assets | 22 |
| Investments | 377 |
| Other Assets | 1,353 |
| Liabilities | ₹ Cr |
|---|---|
| Borrowings | 1,134 |
| Other Liabilities | 264 |
| Net Worth | 354 |
Remark: Balance sheet looks like a guy at the gym – big upper body (assets), but legs (equity) are skinny. Leverage is high, but so is confidence.
Cash Flow – Sab Number Game Hai
| Year | Ops (₹ Cr) | Investing (₹ Cr) | Financing (₹ Cr) |
|---|---|---|---|
| FY23 | -227 | -3 | 228 |
| FY24 | -158 | -2 | 160 |
| FY25 | -658 | -368 | 1,050 |
Remark: Operating cash flow is bleeding like a Bollywood villain, financing cash is saving the day – classic “borrow to grow” play.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 11% |
| ROCE | 9% |
| P/E | 3.7x |
| PAT Margin | 28% |
| D/E | 3.2x |
Remark: Sexy margins, stressy leverage – one wrong move and the dance stops.
P&L Breakdown – Show Me the Money
| Year | Revenue ₹ Cr | EBITDA ₹ Cr | PAT ₹ Cr |
|---|---|---|---|
| FY23 | 11 | 9 | 2 |
| FY24 | 31 | 27 | 11 |
| FY25 | 90 | 76 | 28 |
| TTM | 141 | 123 | 41 |
Remark: Growth is faster than a meme stock pump, but sustainability is the big question.
Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Bajaj Finance | 73,107 | 17,425 | 31x |
| Shriram Finance | 43,778 | 8,508 | 14x |
| Muthoot Finance | 20,214 | 5,332 | 20x |
| SCML | 141 | 41 | 3.7x |
Remark: Comparing SCML to Bajaj is like comparing a scooter to a jet – fun, but irrelevant.
Miscellaneous – Shareholding, Promoters
- Promoters: 9.58% (falling like crypto in 2022)
- Public: 90.42% (retail party mode)
- No major M&A buzz, no institutional love – just pure retail frenzy.
EduInvesting Verdict™
Standard Capital Markets is the penny stock equivalent of a street magician – it pulls rabbits out of hats (profit growth), but you’re never sure if it’s magic or sleight of hand. The fundamentals scream high risk, high reward. Debt is towering, promoter holding is suspiciously low, and cash flows are bleeding. Yet, valuations are so low they make even a pessimist curious.
SWOT
- Strengths: Explosive growth, low P/E, high margins.
- Weaknesses: High leverage, poor cash flow, low promoter confidence.
- Opportunities: NBFC credit cycle, cheap valuations attracting speculators.
- Threats: RBI tightening, liquidity crunch, promoter exit.
Final Word:
SCML could either be the next rags-to-riches story or just another penny stock fad. Investors must decide if they’re betting on a turnaround or signing up for a thrill ride with no seatbelt.
Written by EduInvesting Team | 01 Aug 2025
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Standard Capital Markets, NBFC Penny Stock, SCML Q1 FY26 Results, Stock Analysis, Multibagger or Trap
