SMC Global Sec. (SMCGLOBAL)
CyclicalFairStock Score: 40/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹79.46 |
| Market Cap | ₹1,663.89 Cr |
| P/E Ratio | 16.32 |
| ROCE | 14.6% |
| ROE | 8.18% |
| Dividend Yield | 1.51% |
| Profit Growth | 461.1% |
| Debt/Equity | 1.63 |
| Sales Growth | 23.8% |
| Promoter Holding | 66.76% |
| 52-Week Range | ₹54.44 — ₹94.9 |
| Sector | Capital Markets |
| Book Value | ₹62.27 |
Strengths
- Promoter holding of 66.76% aligns insiders with minority shareholders.
- Revenue grew 8.63%, and latest quarter sales of ₹495 Cr show scale in the broking business.
- P/B of 1.44 against book value ₹45.60 is not excessive, and dividend yield is 1.56%.
- ROCE of 14.60% is respectable, while price is nearer the 52-week low than the high.
Concerns
- Net profit declined 30.03%, and ROE of only 7.27% makes the P/E of 19.01 look expensive.
- Debt/equity of 1.62 is high for a broker and adds financial risk.
- Piotroski F-score of 4/9 and FairStock score of 28/100 point to weak fundamentals.
- PEG ratio of 2.20 gives no comfort given declining profits.
AI Analysis
Let me start with what I don't like. This is stockbroking and allied — a business where customers can leave as easily as they came. With promoter holding at 66.76%, ownership is aligned, but alignment alone isn't a moat. Sales grew 8.63%, yet profit collapsed 30.03%. At P/E of 19.01, the market is paying for growth that isn't showing up on the bottom line. ROE of 7.27% is weak; I can get that from an index fund with less trouble. Book value ₹45.60 gives P/B of 1.44, but book value in a leveraged broker needs scrutiny, not comfort. Debt/equity at 1.62, and ROCE at 14.60% — but when equity returns are only 7.27%, leverage is doing more work than the business. The latest quarter shows sales ₹495 Cr and net profit ₹31 Cr — a 6.3% margin, not terrible, but not enough to justify a 19 P/E. The Piotroski F-score of 4/9 signals fundamental deterioration, and the FairStock risk score of 28/100 reinforces that. Even the PEG ratio of 2.20 doesn't help. The stock is closer to its 52-week low of ₹54.44 and pays a 1.56% dividend, which gives some cushion. But a cyclical broker with falling earnings, high debt, and a double-digit P/E is not a margin-of-safety situation. In Benjamin Graham's language, this is not an investment-grade business. At best, it is a cyclical or asset play to revisit when earnings stabilize and leverage falls. The price of ₹65.50 can become attractive only if profits recover and ROE moves closer to a sustainable 15%. I would rather wait on the sidelines.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer