Sakthi Finance

Why is Sakthi Finance Ltd falling/rising?

As of 01-Sep, Sakthi Finance Ltd's stock price is at 27.43, down 0.54%, and has been on a downward trend, underperforming the Sensex significantly. Despite a recent increase in trading interest, the stock remains below key moving averages, indicating a continued bearish outlook.

As of 01-Sep, Sakthi Finance Ltd's stock price is currently at 27.43, reflecting a decrease of 0.15, or 0.54%. The stock has been experiencing a downward trend, having fallen for the last two consecutive days, resulting in a total decline of 1.15% during this period. Additionally, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.<BR><BR>In terms of broader performance, Sakthi Finance has underperformed compared to the Sensex over various time frames, with a year-to-date decline of 30.56% compared to the Sensex's 9.71%. Over the past year, the stock has decreased by 38.36%, while the Sensex has only fallen by 4.26%. This significant underperformance may contribute to investor sentiment and the stock's current price decline.<BR><BR>However, there is a positive note regarding investor participation, as the delivery volume on 31 August rose by 159.95% compared to the 5-day average, suggesting increased interest in trading the stock. Despite this rise in participation, the overall trend remains negative, as indicated by the stock's recent performance and its position relative to moving averages.

Which are the latest news on Sakthi Finance?

Who are in the management team of Sakthi Finance?

The management team of Sakthi Finance includes Chairman M Manickam, Vice Chairman & Managing Director M Balasubramaniam, and several independent and non-executive directors, all of whom guide the company's strategic direction and governance.

The management team of Sakthi Finance includes the following individuals:<BR><BR>1. **M Manickam** - Chairman & Non-Executive Director<BR>2. **M Balasubramaniam** - Vice Chairman & Managing Director<BR>3. **M Srinivaasan** - Non-Executive & Non-Independent Director<BR>4. **A Selvakumar** - Independent Non-Executive Director<BR>5. **P S Gopalakrishnan** - Independent Non-Executive Director<BR>6. **Priya Bhansali** - Independent Non-Executive Director<BR>7. **K P Ramakrishnan** - Independent Non-Executive Director<BR>8. **S Veluswamy** - Non-Executive & Non-Independent Director<BR><BR>This team plays a crucial role in guiding the company's strategic direction and governance.

What does Sakthi Finance do?

Sakthi Finance Ltd is a Micro Cap NBFC specializing in Used Commercial Vehicle and Construction Equipment Loans, with a market cap of INR 181 Cr and a net profit of 4 Cr as of June 2026. The company was founded in 1955 and has a P/E ratio of 10.00.

Overview: <BR>Sakthi Finance Ltd is a Micro Cap company in the Non Banking Financial Company (NBFC) sector, specializing in Used Commercial Vehicle Loans and Construction Equipment Loans.<BR><BR>History: <BR>Sakthi Finance Ltd was incorporated on March 30, 1955, originally as 'The Pollachi Credit Society Pvt. Ltd.' The company changed its name to Sakthi Finance Limited in 1967. The latest quarterly results reported net sales and net profit for June 2026.<BR><BR>Financial Snapshot: <BR>Net Sales: 51 Cr (Quarterly Results - Jun 2026) <BR>Net Profit: 4 Cr (Quarterly Results - Jun 2026) <BR>Market Cap: INR 181 Cr (Micro Cap)<BR><BR>Key Metrics: <BR>P/E: 10.00 <BR>Industry P/E: 21 <BR>Dividend Yield: 2.23% <BR>Debt Equity: 4.84 <BR>Return on Equity: 7.17% <BR>Price to Book: 0.74 <BR><BR>Contact Details: <BR>Address: 62 DR NANJAPPA ROAD, P B NO 3745 Coimbatore Tamil Nadu : 641018 <BR>Tel: 91-0422-2231471-74/4236200 <BR>Email: sakthif_info@sakthifinance.com <BR>Website: http://www.sakthifinance.com

Who are the peers of the Sakthi Finance?

Sakthi Finance's peers include Jhaveri Credits, Last Mile Enter., Sangam Finserv, and others, with varying management risks and growth rates. Sakthi Finance has below average growth and a good capital structure, with a 1-year return of -38.77%.

Peers: The peers of Sakthi Finance are Jhaveri Credits, Last Mile Enter., Sangam Finserv, Emerald Finance, GACM Tech, Crescentis Capit, AMPL Capital, Tilak Ventures, Kreon Finnancial, and Supra Pacific.<BR><BR>Quality Snapshot: Excellent management risk is observed at Jhaveri Credits, Last Mile Enter., Sangam Finserv, Emerald Finance, GACM Tech, Tilak Ventures, Kreon Finnancial, and Supra Pacific, while Average management risk is found at Crescentis Capit and AMPL Capital. Below Average management risk is noted for Sakthi Finance and the rest. In terms of growth, Excellent growth is seen at Last Mile Enter., Emerald Finance, GACM Tech, Tilak Ventures, Kreon Finnancial, and the rest, while Below Average growth is noted for Sakthi Finance, Sangam Finserv, and Crescentis Capit. Excellent capital structure is present at Jhaveri Credits, Last Mile Enter., Sangam Finserv, Emerald Finance, GACM Tech, Crescentis Capit, AMPL Capital, Tilak Ventures, Kreon Finnancial, and the rest, while Sakthi Finance has a Good capital structure.<BR><BR>Return Snapshot: GACM Tech has the highest 1-year return at 101.79%, while Last Mile Enter. has the lowest at -56.07%. Sakthi Finance's 1-year return of -38.77% is better than Last Mile Enter. but worse than GACM Tech. Additionally, the six-month return is negative for Emerald Finance, Crescentis Capit, and AMPL Capital.

How big is Sakthi Finance?

Summary could not be generated.

As of 31st August, Sakthi Finance Ltd has a market capitalization of 181.00 Cr, which categorizes it as a Micro Cap company.<BR><BR>In the latest four quarters, Sakthi Finance reported Net Sales of 207.96 Cr and a Net Profit of 17.31 Cr.<BR><BR>The reporting period for the balance sheet data is the latest annual period, but specific values for Shareholder's Funds and Total Assets are unavailable.

Should I buy, sell or hold Sakthi Finance Ltd?

When is the next results date for Sakthi Finance Ltd?

The next results date for Sakthi Finance Ltd is 14 August 2026.

The next results date for Sakthi Finance Ltd is scheduled for 14 August 2026.

Are Sakthi Finance Ltd latest results good or bad?

Sakthi Finance Ltd's latest results show a 49.87% increase in net profit quarter-on-quarter, but a 22.44% decline year-on-year, alongside falling sales and high debt levels, indicating a challenging outlook that many investors may view as unfavorable.

Sakthi Finance Ltd's latest results present a mixed picture. In Q4 FY26, the company reported a net profit of ₹5.62 crores, which is a significant increase of 49.87% compared to the previous quarter. However, this figure reflects a decline of 22.44% year-on-year. On the sales front, net sales fell to ₹49.28 crores, down 10.09% from the previous quarter and 6.49% year-on-year, indicating ongoing revenue contraction.<BR><BR>While the improvement in net profit and a higher PAT margin of 11.40% (up 456 basis points QoQ) may seem positive, it is essential to note that this was largely driven by a reduction in the effective tax rate rather than a robust operational performance. The company's elevated debt-to-equity ratio of 5.45 times raises concerns about financial stability, and its return on equity remains low at 6.99%.<BR><BR>Overall, while there are some positive indicators in terms of quarter-on-quarter profit growth, the year-on-year declines in both sales and profit, coupled with high leverage and weak capital efficiency, suggest that the results are not fundamentally strong. Therefore, the outlook for Sakthi Finance appears challenging, and many investors may view the latest results as unfavorable.

How has been the historical performance of Sakthi Finance?

Sakthi Finance showed positive historical performance from March 2009 to March 2010, with net sales increasing to 78.30 Cr, operating profit rising to 61.35 Cr, and profit after tax growing to 5.86 Cr, alongside improved cash flow. Despite slight declines in profit margins, the overall trend indicated growth in key financial metrics.

Answer:<BR>The historical performance of Sakthi Finance shows a positive trend in key financial metrics from March 2009 to March 2010.<BR><BR>Breakdown:<BR>In the fiscal year ending March 2010, Sakthi Finance reported net sales of 78.30 Cr, an increase from 57.35 Cr in March 2009. The total operating income also rose to 78.30 Cr from 57.35 Cr, while total expenditure, excluding depreciation, increased to 16.94 Cr from 11.94 Cr. Operating profit, excluding other income, improved to 61.35 Cr from 45.41 Cr, leading to an operating profit margin of 78.36%, slightly down from 79.19% the previous year. Profit before tax increased to 10.11 Cr from 7.62 Cr, and profit after tax rose to 5.86 Cr from 4.77 Cr, resulting in a PAT margin of 7.49%, down from 8.31%. The earnings per share also improved to 1.95 from 1.58. In terms of cash flow, the company experienced a net cash inflow of 9.28 Cr in March 2010, compared to 1.39 Cr in March 2009, with closing cash and cash equivalents rising to 24.51 Cr from 15.22 Cr. Overall, Sakthi Finance demonstrated growth in sales, profits, and cash flow during this period.

Is Sakthi Finance overvalued or undervalued?

As of November 12, 2025, Sakthi Finance is considered undervalued with attractive valuation metrics, including a PE ratio of 16.17 and a PEG ratio of 3.44, despite its recent stock performance lagging behind the Sensex.

As of 12 November 2025, Sakthi Finance has moved from a fair to an attractive valuation grade. The company appears to be undervalued given its current metrics, with a PE ratio of 16.17, an EV to EBIT of 9.17, and a Price to Book Value of 1.19. These ratios suggest that the company is trading at a reasonable price relative to its earnings and book value, especially when compared to peers like Bajaj Finance, which has a significantly higher PE ratio of 34.41, and Life Insurance, which shows a more attractive PE of 11.14.<BR><BR>In comparison to its peers, Sakthi Finance's PEG ratio of 3.44 indicates a more favorable growth outlook relative to its valuation, while Bajaj Finserv's PEG of 2.44 suggests it is overvalued. Additionally, Sakthi Finance's recent stock performance has lagged behind the Sensex, particularly in the year-to-date return, which stands at -29.13% compared to the Sensex's 8.10%. This underperformance, combined with its attractive valuation metrics, reinforces the conclusion that Sakthi Finance is currently undervalued.

Who are the top shareholders of the Sakthi Finance?

The top shareholders of Sakthi Finance include Sakthifinance Financial Services Limited with 19.19%, Avdhoot Finance And Investment Private Limited at 8.69%, and individual investors holding 7.38%. There are no pledged promoter holdings, and the company currently has no mutual funds or foreign institutional investors.

The top shareholders of Sakthi Finance include the promoters, with Sakthifinance Financial Services Limited holding the largest stake at 19.19%. The highest public shareholder is Avdhoot Finance And Investment Private Limited, which owns 8.69%. Additionally, individual investors hold 7.38% of the shares. Notably, there are no pledged promoter holdings, and the company does not have any mutual funds or foreign institutional investors currently holding shares.

What is the technical trend for Sakthi Finance?

As of April 22, 2025, Sakthi Finance's technical trend is mildly bearish, with mixed signals from the MACD and moving averages, indicating a lack of clear direction.

As of 22 April 2025, the technical trend for Sakthi Finance has changed from bearish to mildly bearish. The weekly MACD indicates a mildly bullish stance, while the monthly MACD is mildly bearish, suggesting mixed signals. The daily moving averages are mildly bearish, reinforcing the overall bearish sentiment. The Bollinger Bands show a sideways movement on the weekly chart and a mildly bearish trend on the monthly chart. The KST is mildly bullish weekly but mildly bearish monthly, and Dow Theory indicates a mildly bullish trend on the weekly timeframe with no clear trend monthly. Overall, the current technical stance is mildly bearish, with key indicators such as the daily moving averages and monthly MACD contributing to this outlook.

Has Sakthi Finance declared dividend?

Yes, Sakthi Finance Ltd has declared an 8% dividend, amounting to ₹0.8 per share, with an ex-date of September 3, 2024. While recent returns have been volatile, the company has shown significant growth in total returns over the past several years.

Sakthi Finance Ltd has declared an 8% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 8%<BR>- Amount per share: 0.8<BR>- Ex-date: 03 Sep 2024<BR><BR>Dividend Yield: 1.26%.<BR><BR>Total Returns by Period:<BR>In the last 6 months, the price return was -15.3%, the dividend return was 0%, resulting in a total return of -15.3%.<BR><BR>Over the past year, the price return was -1.06%, the dividend return was 1.55%, leading to a total return of 0.49%.<BR><BR>In the 2-year period, the price return was 72.17%, the dividend return was 3.99%, which resulted in a total return of 76.16%.<BR><BR>For the 3-year period, the price return was 94.88%, the dividend return was 8.99%, culminating in a total return of 103.87%.<BR><BR>In the last 4 years, the price return was 200.0%, the dividend return was 11.66%, resulting in a total return of 211.66%.<BR><BR>Over the past 5 years, the price return was 258.44%, the dividend return was 23.57%, leading to a total return of 282.01%.<BR><BR>Overall, Sakthi Finance has declared a dividend, and while recent returns have shown volatility, the longer-term performance indicates significant growth, particularly in total returns over the past several years.