One of the small-cap NBFC stocks engaged in investing in stocks and securities, as well as lending. The stock has hit 5 percent after reporting September quarter results in 2024. The company’s revenue increased by 174.1 percent to Rs. 78.31 crore, and net profit increased by 166.05 percent to Rs. 63.32 crore.
Stock movement
The share price of Saraswati Commercial (India) Limited hit a 5 percent upper circuit to Rs. 22,661 per share on Monday, a significant rise from its previous close of Rs. 21,581.95 per share. Since then, the share has retreated and is now trading at Rs. 22,460.
Over the six months, the share has delivered returns of over 329.21 percent. The market capitalization now stands at approximately Rs. 2,276.15 crore as of November 2024.
Q2 FY25 Result Walkthrough
Coming into the quarterly results of Saraswati Commercial (India) Limited, the company’s consolidated revenue from operations increased by 174.1 percent YOY, from Rs. 28.57 crore in Q2 FY24 to Rs. 78.31 crore in Q2 FY25, and grew by 14.81 percent QoQ from Rs. 68.21 crore in Q1 FY25.
The company has earned revenue from interest by 1.50%, dividend income by 2.47%, and net gain on fair value changes by 96.03% in Q2 FY25. Further, the company’s EBIT has increased by 174% YOY, from 76.7 crore in Q2 FY24 to 28 crore in Q2 FY25.
In Q2 FY25, Saraswati Commercial Limited’s consolidated net profit increased by 166.05 percent YOY, reaching Rs. 63.32 crore compared to Rs. 23.80 crore during the same period last year. As compared to Q1 FY25, the net profit has increased by 20.72 percent, from Rs. 52.45 crore.
The basic earnings per share increased by 180.05% and stood at Rs 614.85 as against Rs 231.12 recorded in the previous quarter FY25.
In terms of return ratios, Saraswati Commercial Limited’s share ROE and ROCE are currently at 18.5 percent and 21.8 percent, respectively. Saraswati Commercial (India) Limited has a debt-to-equity ratio of 0.01x, which shows the company is almost debt-free.
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Business Operations
Saraswati Commercial Limited offers lending services to individuals and businesses, facilitating access to credit for various needs. The company also engages in investment activities, focusing on a diverse portfolio of financial instruments for capital appreciation and income generation. Additionally, Saraswati participates in trading securities, buying and selling shares to enhance its revenue through market transactions.
Shareholding Pattern
In September 2024, Saraswati Commercial Limited had a majority stake held by the promoters at 72.33 percent and the public at 27.68 percent.
Company Overview
Saraswati Commercial (India) Limited was incorporated on January 24, 1983, and is an India-based non-banking financial company. The company’s primary business is investing in stocks and securities, as well as lending. The company’s subsidiaries include Sareshwar Trading and Finance Private Limited and Arkaya Commercial Private Limited.
Written By – Nikhil Naik
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