At a Glance
Systematix Corporate Services Ltd delivered a Q1 FY26 net profit of ₹10.4 crore, a 501% YoY jump. Sounds spectacular, right? Until you notice the “other income” line doing heavy lifting with ₹29 crore in FY25. Revenue rose to ₹39 crore (↑22% YoY), operating margins at a healthy 40%, but market isn’t buying the magic – stock fell 2.6% to ₹122. Promoter stake? 70.6%, slightly down, while FIIs nibbled at 5.4%. P/E at 31x tells you investors still believe in fairy tales.
Introduction
Systematix – a name that suggests order but delivers market drama. Founded in 1985, the firm advises investors, manages portfolios, and occasionally throws in some proprietary trading spice. With a history of volatility that makes roller coasters jealous, this quarter’s profit spike comes with a disclaimer: don’t get too excited, it’s not all from core operations.
The market cap of ₹1,673 crore is riding on high expectations and even higher other income. With a low dividend yield (0.08%) and a promoter stake that’s slowly leaking, shareholders have questions – mainly, where’s the sustainable growth?
Business Model (WTF Do They Even Do?)
Systematix plays in the financial services sandbox:
- Investment Banking & Advisory – helping corporates raise funds and list.
- Institutional & Retail Broking – stock market access for traders.
- Wealth Management & PMS – managing the rich folks’ money, and hopefully not losing it.
The company thrives when markets boom and sulks when they don’t. Lately, the boom-bust cycles have been extreme.
Financials Overview
Q1 FY26 Highlights:
- Revenue: ₹39 crore (↑22% YoY)
- Operating Profit: ₹16 crore (OPM 40%)
- PAT: ₹10.4 crore (↑501% YoY)
- EPS: ₹0.77
Annual FY25 recap: revenue ₹139 crore, PAT ₹46 crore (boosted by other income ₹29 crore). ROE still solid at 20%, but core growth remains patchy.
Valuation
At 30.7x P/E, the stock is pricey compared to peers like Angel One (23.7x) or IIFL (13.1x).
Fair Value Calculations
- P/E Method:
- Industry P/E ~20x, EPS ₹4.08 → Fair Price = ₹82
- EV/EBITDA Method:
- EV/EBITDA ~8x, EBITDA ₹47 Cr → EV ≈ ₹376 Cr → Fair Price ≈ ₹90
- DCF (Generous):
- Assuming 10% growth, WACC 9%, terminal 3% → Fair Price ≈ ₹95
💡 Fair Value Range: ₹80 – ₹95 (Current ₹122 = hope premium)
What’s Cooking – News, Triggers, Drama
- ESOP 2025: 68 lakh shares approved – hello dilution!
- Q1 profit spike largely on the back of trading/other income.
- Market share still minuscule compared to big brokers.
- Promoter holding dipped, FIIs entered – speculative interest brewing.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 428 |
| Liabilities | 128 |
| Net Worth | 308 |
| Borrowings | 20 |
Auditor’s Roast: Balance sheet is clean (almost debt-free), but reserves inflated by other income.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Ops | -15 | 88 | -20 |
| Investing | 4 | 24 | 11 |
| Financing | -14 | -3 | 98 |
Stand-up Take: Ops cash flow swings like a cricket match. FY25 negative? Not cool for a finance house.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 20.2% |
| ROCE | 24.8% |
| P/E | 30.7 |
| PAT Margin | 32% |
| D/E | 0.06 |
Verdict: Ratios look sexy, but they’re wearing makeup (other income).
P&L Breakdown – Show Me the Money
| (₹ Cr) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 73 | 146 | 139 |
| EBITDA | 4 | 73 | 35 |
| PAT | 5 | 53 | 46 |
Auditor Joke: Profits shoot up when other income says hi; core ops still sipping chai.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Motilal Oswal | 8,758 | 2,783 | 19 |
| Angel One | 4,973 | 994 | 24 |
| Monarch Networth | 340 | 154 | 19 |
| Systematix | 148 | 54 | 31 |
Commentary: Peers have scale and cheaper valuations; Systematix has… optimism.
Miscellaneous – Shareholding, Promoters
- Promoters: 70.58% (slight dip)
- FIIs: 5.39% (new players entering)
- Public: 24% (silent bagholders)
- ESOP Dilution: Upcoming – not great for existing shareholders.
EduInvesting Verdict™
Systematix Corporate is a nimble financial services player with high ROE, low debt, and strong advisory chops. However, Q1 FY26 results are misleadingly boosted by income sources outside core operations.
Past Performance:
- Profit CAGR 65% in 5 years – great, but mostly lumpy.
- Cash flows erratic, promoter stake reducing – mild red flags.
Current Scenario:
- Valuation rich, market skeptical.
- ESOP dilution looming.
Future Outlook:
- Growth depends on scaling brokerage/advisory, reducing reliance on trading gains.
- Risks include market volatility and margin compression.
SWOT Analysis:
- Strength: Strong ROE, niche positioning, clean balance sheet.
- Weakness: Dependence on other income, small scale.
- Opportunity: Rising retail participation, expanding FII interest.
- Threat: Larger brokers, ESOP dilution, cyclical earnings.
Final Word: Great short-term momentum, shaky long-term fundamentals. Treat like a speculative bet, not a safe haven.
Written by EduInvesting Team | July 29, 2025
SEO Tags: Systematix Corporate Services, Q1 FY26 Results, Financial Advisory, Stockbroking Analysis
