Check Before You Invest : Saraswati Commercial (India) Ltd

Q: Which industry/sub-sector does Saraswati Commercial (India) Ltd belong to?

Saraswati Commercial (India) Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q: Is Saraswati Commercial (India) Ltd a good quality company?

Saraswati Commercial (India) Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Saraswati Commercial (India) Ltd undervalued or overvalued?

Saraswati Commercial (India) Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 12.67, Historic Median: 10.10. Price to Book, Current: 1, Historic Median: 0.85. Price to Sales, Current: 9.76, Historic Median: 5.97. EV to EBITDA, Current: 9.91, Historic Median: 7.78

Q: Is Saraswati Commercial (India) Ltd a good buy now?

Saraswati Commercial (India) Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of Saraswati Commercial (India) Ltd?

Saraswati Commercial (India) Ltd Operating Income growth is -41.24% for FY-2025, which is below its 5-year CAGR of 59.4%, indicating slower growth.

Q: Return on Assets of Saraswati Commercial (India) Ltd?

Saraswati Commercial (India) Ltd Return on Asset is 5.7%, which is below its 5-year historical median of 9.4%, indicating deteriorated earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 70.82, Historic Median: 51.87. PPOP (%), Current: -43.55, Historic Median: -43.55. RoA (%), Current: 5.7, Historic Median: 9.4

Q: Return on Equity (ROE) of Saraswati Commercial (India) Ltd?

Saraswati Commercial (India) Ltd Return on Equity is 6.5% for FY-2025, which is below its 5-year historical median of 9.9%, indicating the business is making worse use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Saraswati Commercial (India) Ltd?

Saraswati Commercial (India) Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -43.55% for FY-2025, which is in line with its 5-year median(-43.55%), indicating stable margins.

Q: Net Profit Margin of Saraswati Commercial (India) Ltd?

Saraswati Commercial (India) Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 70.82% for FY-2025, which is above its 5-year median( 51.87%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

Saraswati Commercial (India) Ltd return on invested capital (ROIC) is 6.44% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check Before You Invest : Saraswati Commercial (India) Ltd

BSE: 512020 NSE: ZSARACOM ISIN: INE967G01019

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Saraswati Commercial (India) Ltd belong to?

Saraswati Commercial (India) Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Saraswati Commercial (India) Ltd a good quality company?

Saraswati Commercial (India) Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Saraswati Commercial (India) Ltd undervalued or overvalued?

Saraswati Commercial (India) Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	12.67	10.10
Price to Book	1	0.85
Price to Sales	9.76	5.97
EV to EBITDA	9.91	7.78

Q.4 Is Saraswati Commercial (India) Ltd a good buy now?

Saraswati Commercial (India) Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Saraswati Commercial (India) Ltd?

Saraswati Commercial (India) Ltd Operating Income growth is -41.24% for FY-2025, which is below its 5-year CAGR of 59.4%, indicating slower growth.

Q.2 Return on Assets of Saraswati Commercial (India) Ltd?

Saraswati Commercial (India) Ltd Return on Asset is 5.7%, which is below its 5-year historical median of 9.4%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	70.82	51.87
PPOP (%)	-43.55	-43.55
RoA (%)	5.7	9.4

Q.3 Return on Equity (ROE) of Saraswati Commercial (India) Ltd?

Saraswati Commercial (India) Ltd Return on Equity is 6.5% for FY-2025, which is below its 5-year historical median of 9.9%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Saraswati Commercial (India) Ltd?

Saraswati Commercial (India) Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -43.55% for FY-2025, which is in line with its 5-year median(-43.55%), indicating stable margins.

Q.5 Net Profit Margin of Saraswati Commercial (India) Ltd?

Saraswati Commercial (India) Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 70.82% for FY-2025, which is above its 5-year median( 51.87%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

Saraswati Commercial (India) Ltd return on invested capital (ROIC) is 6.44% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Saraswati Commercial (India) Ltd?

Saraswati Commercial (India) Ltd Total Asset growth is 43.84% for FY-2025, which is below its 5-year CAGR of 46.92%, indicating slower growth.

C: How strong is the bank’s capital position and asset quality?

Q.8 Capital Adequacy ratio of Saraswati Commercial (India) Ltd?

Saraswati Commercial (India) Ltd Capital Adequacy ratio (CAR) is 81.8% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

D: Promoter shareholding and pledge status of Saraswati Commercial (India) Ltd?

Q.1 Promoter shareholding and pledge status of Saraswati Commercial (India) Ltd?

Promoters hold 74.88% of the Saraswati Commercial (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Saraswati Commercial (India) Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Saraswati Commercial (India) Ltd vs Industry Peers?

Saraswati Commercial (India) Ltd AUM CAGR is 46.92%, compared to the 5-year industry median CAGR of 9.71%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Saraswati Commercial (India) Ltd vs industry peers

Saraswati Commercial (India) Ltd profit metrics are in line with the industry median level of 4.76%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	70.82	12.87
PPOP (%)	-43.55	-
RoA (%)	5.7	1.4

Q.3 Operating efficiency of Saraswati Commercial (India) Ltd vs industry peers?

Saraswati Commercial (India) Ltd ROCE (11.8) is above the industry median of (4.15); while the current ROE (9.9) are above than the 5-year average Industry ROE (2.3). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	70.82	12.87
PPOP (%)	-43.55	-
RoA (%)	5.7	1.4
ROCE (%)	8.3	4.15
ROE (%)	6.5	2.3

Valuation & price assessment

Q.1 Stock return of Saraswati Commercial (India) Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 103.4% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	103.4%	38.9%	54.7%	-33.3%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	12.67	10.10	29.12
Price to Book	1	0.85	1.11
Price to Sales	9.76	5.97	9.10
EV to EBITDA	9.91	7.78	11.77

Q.3 Valuation ratios of Saraswati Commercial (India) Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1 is higher than its historical median of 0.85, indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : Saraswati Commercial (India) Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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