Smart Finsec Ltd

Smart Finsec Ltd (SMARTFIN) is a micro-cap Financial Services company valued at ₹25 crore operating in NBFC on the NSE and BSE.

Recent price move

Smart Finsec Ltd last traded at ₹8.29, modestly up 0.24% on the day.

Recent developments

2026-09-07: The DocStoX verdict changed to 'avoid' as the score dropped to 4.8, reflecting concerns about business quality. 2026-07-15: The score was 6.6, but it fell to 4.8 by September, signaling a shift in sentiment. 2026-06-30: Promoter holding remained at 74.99%, but working capital days increased sharply to 1,942 days.

Financial performance

The company's annual net profit fell 16.2% year-over-year, despite a stable revenue of ₹2 crore. The latest quarter showed no improvement, with profit margins remaining at 51.8%, but return on equity and return on capital employed are weak at 6.1% and 8.4% respectively. The 3-year profit CAGR is negative at -11.4%, though the 5-year CAGR is positive at 16.8%.

Valuation multiples

The stock trades at 21.3 times earnings, broadly in line with the Financial Services median of 19.3, 1.46 times book value.

Things to watch

The company is not paying dividends despite reporting profits, which could signal financial stress. Working capital days have more than doubled, indicating potential liquidity issues. The score breakdown highlights a very low business quality score of 0.0/10, which is a major red flag.

Where it stands

The DocStoX verdict of 'avoid' follows from the sharp drop in the score and the poor business quality rating, which is the most critical factor. The company's failure to pay dividends and the significant increase in working capital days raise serious concerns about its financial health.

Summarised by DocStoX's model on 2026-09-08 from company filings, exchange data and news. This is a factual summary, not a rating or a recommendation. Informational only, not investment advice. Consult a SEBI-registered adviser before investing.