1. At a Glance – The ‘Baitho Beta Dividend Aayega’ Company
STEL Holdings Ltd is that khandani investment holding company that doesn’t shout, doesn’t sell products, doesn’t do marketing — it just sits quietly collecting dividends like a retired industrialist sipping Darjeeling tea. Part of the RPG Group and RPSG Group, STEL operates as a Core Investment Company (CIC) with a market cap of ₹772 crore against a book value of ₹1,005. Yes, stock trades at 0.42x P/B, which already makes deep value hunters wake up at 5 a.m.
CMP stands at ₹418, with 3-month return of ~3.4% and 1-year return of ~13.6%. ROE and ROCE hover around ~1%, which is… let’s say spiritually stable but financially sleepy. Debt is zero, promoter holding is 71.33%, and dividends? Zero. STEL prefers reinvestment over pocket money.
Latest quarterly numbers (Dec 2025) show PAT of ₹12.6 crore and revenue of ₹17.2 crore, which caused YoY growth percentages to explode into five-digit territory — mostly because last year’s base was almost comatose.
So the real question: is STEL a hidden treasure chest of group investments or just a well-dressed locker with slow interest? Let’s open it.
2. Introduction – Holding Companies: Boring Until They Aren’t
Holding companies are like that quiet topper in class who never participates but ends up cracking UPSC. STEL Holdings doesn’t manufacture, distribute, or sell anything tangible. Its job is to own stakes in group companies, collect dividends, and occasionally reshuffle the portfolio when the promoter family feels like it.
In FY25, STEL reported ₹40 crore in sales and ₹30 crore in PAT, but calling this “sales” is almost misleading — most of it is dividend income (~82%) and interest income (~18%). This is not an operating company; this is a capital allocator with a personality disorder — conservative on the outside, aggressive underneath.
What makes STEL interesting is not its P&L but its investment book of ₹2,003 crore as of Sep 2025, largely concentrated in listed and unlisted RPG/RPSG companies across
power, carbon black, tyres, utilities, FMCG retail, and pharma.
But here’s the irony: despite sitting on ₹2,000+ crore of assets, STEL generates ROE of just ~1%. That’s like owning three flats in South Mumbai and renting them out for peanuts. So where exactly is the money sleeping?
3. Business Model – WTF Do They Even Do?
STEL’s business model is brutally simple:
- Buy stakes in group companies
- Earn dividends & interest
- Reinvest surplus
- Repeat quietly
The company allocates capital across:
- Listed equity
- Unlisted equity
- Fixed income instruments
Major exposure lies within RPG & RPSG ecosystem companies operating in:
- Power generation & transmission
- Carbon black (hello PCBL Limited)
- Auto tyres & rubber
- Electric utilities
- FMCG & retail
There is minimal overhead. No employee cost drama. No capex tension. Operating margins stay at ~98%, because when your income is dividends, margins automatically look sexy.
But this simplicity also creates a problem: capital efficiency. If the underlying group companies perform well but dividends don’t scale proportionately, STEL’s own ROE remains stuck in slow motion.
So ask yourself: do you want growth excitement, or do you want asset-backed calm with optional upside?
4. Financials Overview – Numbers Don’t Lie, They Just Yawn
📊 Quarterly Performance (Q3 FY26 – Dec 2025)
(Figures in ₹ crore)
| Metric | Latest Qtr | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 17.2 | 0.0 | 9.0 | 5633% | 91% |
| EBITDA | 17.0 | 0.0 | 9.0 | NA | 89% |
| PAT | 12.6 | 0.1 | 7.0 | 13878% | 80% |
| EPS (₹) | 6.82 | 0.05 | 3.60 | NA | 89% |
Yes, YoY growth
