SRG Housing (SRGHFL)

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Strong growth: sales up 29.56% and profit up 43.03%, with latest quarter sales ₹50 Cr and net profit ₹8 Cr
• Reasonable valuation given growth: P/E 14.24 with PEG 0.39
• Healthy promoter holding of 59.06%, aligning interests with minority shareholders
• Decent profitability with ROE 14.56% and ROCE 12.29%
• Solid Piotroski F-Score of 7/9 indicating good financial health

Concerns

• High leverage with Debt/Equity of 2.50, typical for housing finance but risky in a rising rate cycle
• No dividend yield, so investors depend entirely on growth and capital gains
• Small market cap of ₹419 Cr may limit institutional interest and liquidity
• Asset quality metrics like NPA levels are not provided, a critical unknown for a lender

AI Analysis

When I look at SRG Housing, I see a small, focused housing finance company that is growing at a pace most large lenders would envy. Sales are up nearly 30% and profits have jumped over 43%, yet the stock trades at only 14.24 times earnings. That is a PEG ratio of 0.39, which suggests the market is not paying full credit for this growth. As Graham would say, a fair price for above-average growth is a rare thing. The latest quarter shows sales of ₹50 crore and net profit of ₹8 crore, so the momentum is not just on paper. Return on equity of 14.56% and ROCE of 12.29% are decent, though not spectacular. What I like more is the promoter holding of 59.06%, which aligns management with minority shareholders. The Piotroski score of 7 out of 9 also tells me the company’s financial health is sound: it is generating profits, improving margins, and managing its balance sheet sensibly. That said, I must keep my discipline. This is a leveraged business, with debt-to-equity of 2.50, which is common for a housing finance company but still a risk if interest rates rise or asset quality weakens. There is no dividend, so the investor’s return depends entirely on growth and capital appreciation. I would not call this a wide-moat stalwart; it is a fast grower operating in a competitive and regulated sector. My margin of safety comes partly from the reasonable valuation, partly from strong execution. But I need to watch asset quality closely, because in lending, bad loans can wipe out years of good earnings. If SRG can sustain this growth while keeping credit costs low, the math is attractive. If not, the leverage cuts both ways. I would keep this on my watchlist and buy only with eyes open.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer