SMC Global Securities Ltd. (India) (SMCGLOBAL) AI Stock Analysis

• Market Cap: ₹13.26B
• Dividend Yield: 0.7%
• Average Volume (3M): 5.64K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.25
• Revenue Growth: -5.03%
• EPS Growth: -54.73%
• Country: IN
• Employees: 2,767
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 1.46
• Shares Outstanding: 209,400,000
• 10 Day Avg. Volume: 4,652
• 30 Day Avg. Volume: 5,641
• PEG Ratio: -0.17
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -1.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹68.00 ▼(-25.78% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is primarily supported by solid financial performance (growth and operating margins, with a stable balance sheet), but is materially weighed down by weak cash flow quality and clear bearish technical signals (below key DMAs and negative MACD). Valuation appears reasonable and the dividend yield provides modest support.

Positive Factors

Solid operating margins

Consistently healthy gross and robust EBIT/EBITDA margins indicate efficient cost control and scalable operations. Durable margins provide earnings resilience across market cycles, support reinvestment in technology and client services, and improve the firm's ability to sustain profitability over months.

Stable balance sheet with moderate leverage

A growing equity base and moderate leverage give the company financial flexibility to fund growth or absorb shocks without aggressive refinancing. This structural stability supports access to credit, cushions market downturns, and underpins medium-term strategic initiatives and client-service investments.

Diversified fee-based brokerage revenue model

Multiple fee streams—brokerage, distribution/advisory, financing interest, and ancillary fees—reduce reliance on any single product. This diversification supports recurring revenue, enables cross-selling, and enhances long-run resilience versus pure transactional models, strengthening medium-term cash generation potential.

Negative Factors

Negative free cash flow and operating cash deficits

Persistent negative FCF and operating cash shortfalls undermine liquidity and reduce funding for capex, debt reduction, or shareholder returns. Reliance on external funding or working capital draws weakens financial flexibility and poses a structural risk to sustaining investments and margins over the coming months.

Recent revenue and EPS weakness

Declining revenue and sharply lower EPS indicate near-term pressure on core earnings generation. If these trends persist they can erode retained earnings, limit reinvestment capacity, and signal competitive or demand challenges that materially affect performance over a multi-month horizon.

Business sensitivity to market trading volumes and regulatory pressure

Revenue tied to trading activity makes earnings cyclical and exposed to prolonged low-volume periods. Combined with regulatory and pricing pressures common in broking, this structural sensitivity can compress fees and margins and reduce revenue predictability across market cycles.

SMC Global Securities Ltd. (India) Business Overview & Revenue Model

Company Description

SMC Global Securities Limited, together with its subsidiaries, provides various financial services in India and internationally. The company operates through three segments: Broking, Distribution, and Trading; Insurance Broking Services; and Financing Services. The Broking, Distribution, and Trading segment engages in the brokerage on dealing in shares, commodities, currencies, derivatives, and other securities; provision of clearing and depositary services; portfolio and wealth management; and mortgage and loan advisory, real estate broking, and investment banking services, as well as distribution of third party financial products. The Insurance Broking Services segment provides life and non-life insurance products. The Financing Services segment offers loans. The company also offers online trading and real estate advisory services. SMC Global Securities Limited was founded in 1990 and is based in New Delhi, India.

How the Company Makes Money

SMC Global Securities Ltd. primarily makes money through fees and commissions tied to its brokerage and investment-services activities. Key revenue streams typically include: (1) Brokerage income: commissions/fees earned from executing client trades in securities and other market instruments across exchanges, including charges linked to transaction volumes and client activity. (2) Distribution and advisory-related income: commissions or fees earned from distributing investment products (e.g., third-party financial products) and, where applicable, charging clients for investment/wealth-related services; specific product categories and fee structures are null if not publicly specified in the provided context. (3) Interest and financing-related income: income that may arise from client financing and other interest-bearing activities commonly associated with brokerage operations (e.g., interest on receivables or margin-related financing), but the company-specific breakdown is null if not available. (4) Other operating income: fees from ancillary services connected to account maintenance, platform/technology services, and other brokerage-adjacent activities; detailed line items are null if not disclosed. The company’s earnings are influenced by market trading volumes, client acquisition/retention, regulatory fees and compliance costs, and the competitive pricing environment in Indian brokerage. Any significant partnerships, named affiliates, or a quantified segment-wise revenue split are null if not available from the provided information.

SMC Global Securities Ltd. (India) Financial Statement Overview

Summary

Strong revenue growth and solid EBIT/EBITDA margins support profitability, and the balance sheet shows stable assets/equity with moderate leverage. However, negative free cash flow and operating cash flow deficits raise liquidity and sustainability concerns, keeping the score from being higher.

Income Statement

The income statement shows strong revenue growth, with a consistent increase in total revenue from 2020 to 2025. The gross profit margin has been healthy, indicating efficient cost management. However, net profit margin has seen fluctuations, with a recent decline due to increased expenses impacting net income. The EBIT and EBITDA margins are solid, showcasing good operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with increasing total assets and stockholders' equity over the years. The debt-to-equity ratio remains moderate, suggesting balanced leverage. However, there is a concern with the relatively high total liabilities. The equity ratio is decent, indicating a solid equity base.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow in recent periods largely due to high capital expenditures and operating cash flow deficits. The operating cash flow to net income ratio is negative, highlighting potential liquidity management issues. While there have been periods of cash flow growth, sustainability remains a concern.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.84B	14.95B	14.26B	10.73B	9.91B	8.23B
Gross Profit	2.92B	2.89B	3.52B	2.48B	2.62B	2.08B
EBITDA	3.11B	4.19B	4.22B	2.65B	2.93B	1.98B
Net Income	977.75M	1.46B	1.87B	1.20B	1.74B	1.05B
Balance Sheet
Total Assets	52.42B	49.21B	47.48B	33.07B	29.42B	23.87B
Cash, Cash Equivalents and Short-Term Investments	23.04B	24.02B	25.36B	9.96B	8.05B	10.97B
Total Debt	19.97B	16.95B	14.67B	9.44B	4.97B	4.92B
Total Liabilities	39.82B	37.01B	36.50B	23.72B	20.15B	16.13B
Stockholders Equity	12.58B	12.17B	10.96B	9.33B	9.26B	7.73B
Cash Flow
Free Cash Flow	-2.27B	-4.47B	-2.23B	447.81M	1.30B	-4.02B
Operating Cash Flow	-2.12B	235.37M	-1.93B	771.48M	1.94B	-3.90B
Investing Cash Flow	-145.68M	-1.99B	-286.65M	-310.07M	-625.01M	-115.96M
Financing Cash Flow	1.87B	1.86B	3.16B	2.31B	-292.16M	2.11B

SMC Global Securities Ltd. (India) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SMCGLOBAL, the sentiment is Negative. The current price of 91.62 is above the 20-day moving average (MA) of 75.98, above the 50-day MA of 79.63, and above the 200-day MA of 72.21, indicating a bearish trend. The MACD of -3.13 indicates Positive momentum. The RSI at 30.23 is Neutral, neither overbought nor oversold. The STOCH value of 32.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SMCGLOBAL.

SMC Global Securities Ltd. (India) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SMCGLOBAL	66 Neutral	₹13.26B	15.62	―	0.70%	-5.03%	-54.73%
CSLFINANCE	66 Neutral	₹5.50B	8.12	―	0.93%	17.32%	13.66%
BIRLAMONEY	63 Neutral	₹6.60B	14.15	―	―	-6.37%	-24.10%
ESAFSFB	52 Neutral	₹12.50B	48.24	―	2.64%	-8.71%	-2192.08%
SURYODAY	51 Neutral	₹14.02B	10.24	―	―	―	―