Sakthi Finance

BSE: SAKTHIFIN · Investment Company

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52W Range₹20 – ₹45

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Snapshot

Unlock Sakthi Finance's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Sakthi Finance Limited is a non-banking financial company based in Coimbatore that specializes in asset finance and hire purchase solutions. As part of the diversified Sakthi Group, it primarily caters to small and medium road transport operators for commercial and utility vehicles.

Business Model

The company generates revenue primarily through interest income and financing charges from hire purchase loans for commercial vehicles, multi-utility vehicles, and construction equipment. It also accepts public deposits and provides secured business loans, leveraging a strong branch network across rural and semi-urban markets in South India.

  • Established:1955

Growth Outlook

Growth is expected to be driven by continued demand for commercial and construction equipment financing across rural and semi-urban South India. The company leverages its long-standing customer relationships within the Sakthi Group network to maintain a stable credit portfolio.

Key Risks

  • Credit Risk. Default risks associated with small and medium road transport operators can impact asset quality.
  • Interest Rate Risk. Fluctuations in interest rates may affect borrowing costs and net interest margins.
  • Concentration Risk. Heavy geographic reliance on South India exposes the portfolio to regional economic and regulatory shifts.

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Key Metrics

REVENUE

₹211 Cr

TTM · standalone

-2.0%YoY

NET PROFIT

₹17 Cr

TTM · standalone

+3.6%YoY

EPS

₹2.67

TTM · standalone

+3.9%YoY

RETURN ON EQUITY

7.4%

TTM · standalone

-0.1 ppYoY

P/E

9.3x

Q4 FY26 · standalone

9.3 vs 11.2x5Y avg

NET PROFIT MARGIN

11.4%

Q4 FY26 · standalone

+2.7 ppYoY

Peers · Investment Company

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Sakthi FinanceSAKTHIFIN
₹170 Cr9.26—-2.0%—7.4%—-44.3%
Aryaman Capital Markets LimitedARYACAPM
₹498 Cr20.41——56.0%22.8%—-23.8%
SIL InvestmentsSILINV
₹480 Cr8.97—20.6%83.0%1.8%—-31.3%
Nahar Capital and Financial Services LimitedNAHARCAP
₹423 Cr3.34—20.8%73.0%7.5%—-17.5%
Mkventures Capital LimitedMKVENTURES
₹390 Cr55.69—-23.2%77.9%6.7%—-26.3%
Naperol Investments LimitedNAPEROL
₹371 Cr29.99—36.5%41.0%1.1%—-33.5%

As of Q4 FY26

Financials