Starteck Finance Ltd. (STARTECK) AI Stock Analysis

• Market Cap: ₹2.51B
• Dividend Yield: 0.09%
• Average Volume (3M): 4.25K
• Price to Earnings (P/E): 9.4
• Beta (1Y): 0.34
• Revenue Growth: 28.65%
• EPS Growth: 38.68%
• Country: IN
• Employees: 5
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 7.54
• Shares Outstanding: 9,910,330
• 10 Day Avg. Volume: 5,094
• 30 Day Avg. Volume: 4,252
• PEG Ratio: -0.76
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 8.45
• P/FCF Ratio: 10.01
• 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: 60 Neutral
• Price Target: ₹266.00 ▼(-6.17% Downside)
• Action: Reiterated Date: 10/14/25
• Date: Action: Reiterated 10/14/25

Starteck Finance Ltd. has a stable financial foundation with strengths in revenue growth and cost management. However, the stock faces challenges in profitability and cash flow management. Technical indicators suggest a neutral to slightly bearish outlook, while the valuation is reasonable with an attractive dividend yield. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Revenue Growth

Sustained ~38% revenue growth indicates the company is expanding its core credit services scale. Durable top-line expansion supports reinvestment, improves unit economics over time and provides a foundation for margin recovery and capacity to fund growth over the next 2–6 months.

Effective Cost Management

A strong gross profit margin shows ongoing control over direct costs and pricing discipline. This structural cost advantage helps protect operating profitability through cycles, enabling the company to sustain service competitiveness and fund operating needs despite near-term volatility.

Moderate Leverage and Positive ROE

A balanced debt-to-equity profile with positive ROE indicates prudent capital structure and efficient use of equity capital. This durable financial posture supports borrowing capacity, limits refinancing strain, and allows strategic investments without excessive dilution or risk.

Negative Factors

Free Cash Flow Variability

Variable free cash flow undermines predictable capital allocation and weakens the firm’s ability to consistently fund growth, capex or dividends. Over a multi-month horizon this increases execution risk and could force trade-offs between investment and liability management.

Declining Net Profit Margin

A falling net margin despite revenue gains signals margin pressure from operating expenses, credit costs or non-operating items. Persisting margin erosion reduces earnings conversion, limiting retained earnings and constraining long-term reinvestment and shareholder distributions.

Elevated Total Liabilities

High absolute liabilities increase refinancing and liquidity risk, especially if cash generation is variable. Structurally, elevated liabilities constrain flexibility for acquisitions or capital spending and raise vulnerability to adverse rate or funding conditions over the medium term.

Starteck Finance Ltd. Business Overview & Revenue Model

Company Description

Starteck Finance Limited operates as a non-banking financial company in India. It offers financing solutions to retail, small and medium enterprise, and commercial customers in urban and semi-urban areas of India. The company was formerly known as Nivedita Mercantile and Financing Limited and changed its name to Starteck Finance Limited in November 2018. The company was incorporated in 1985 and is based in Mumbai, India.

Starteck Finance Ltd. Financial Statement Overview

Summary

Starteck Finance Ltd. demonstrates a solid financial position with strengths in revenue growth and cost management. However, challenges in maintaining consistent profitability and managing liabilities are evident. The cash flow situation requires attention to ensure long-term financial health and investment capacity.

Income Statement

Starteck Finance Ltd. has shown fluctuating revenue trends with a recent increase in total revenue from the previous year. The gross profit margin is strong, indicating effective cost management. However, the net profit margin has seen a decline, suggesting challenges in maintaining profitability. The EBIT margin has improved, but the EBITDA margin indicates potential volatility in operating performance.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. The return on equity has been positive, reflecting efficient use of equity capital. The equity ratio suggests a stable financial structure, though the high total liabilities could pose a risk if not managed carefully.

Cash Flow

Operating cash flow has been positive, indicating good cash generation from core activities. However, the free cash flow has shown variability, which could impact future investments and financial flexibility. The operating cash flow to net income ratio is favorable, but the free cash flow to net income ratio needs improvement to ensure sustainable cash flow management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	346.16M	328.06M	373.29M	282.19M	289.48M	757.51M
Gross Profit	125.34M	130.64M	283.38M	209.73M	167.81M	443.94M
EBITDA	107.47M	121.84M	224.77M	277.48M	150.26M	422.76M
Net Income	159.44M	104.24M	160.77M	218.20M	101.90M	376.23M
Balance Sheet
Total Assets	5.77B	5.15B	4.44B	3.84B	2.68B	8.14B
Cash, Cash Equivalents and Short-Term Investments	5.63M	1.35B	905.99M	294.52M	259.07M	257.59M
Total Debt	2.75B	2.27B	2.02B	1.81B	922.82M	6.40B
Total Liabilities	3.22B	2.81B	2.38B	2.05B	1.07B	6.68B
Stockholders Equity	2.54B	2.34B	2.06B	1.80B	1.61B	1.47B
Cash Flow
Free Cash Flow	115.12M	277.20M	363.02M	857.23M	-2.05M	-496.27M
Operating Cash Flow	115.12M	277.20M	363.02M	855.76M	-49.36M	-496.27M
Investing Cash Flow	-432.21M	-391.24M	-580.33M	-500.53M	-46.08M	486.56M
Financing Cash Flow	317.79M	92.81M	238.57M	-352.89M	56.41M	15.18M

Starteck Finance Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 283.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:STARTECK, the sentiment is Negative. The current price of 283.5 is above the 20-day moving average (MA) of 260.89, above the 50-day MA of 269.31, and below the 200-day MA of 293.66, indicating a bearish trend. The MACD of -6.00 indicates Positive momentum. The RSI at 39.01 is Neutral, neither overbought nor oversold. The STOCH value of 17.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:STARTECK.

Starteck Finance Ltd. 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%
STARTECK	60 Neutral	₹2.51B	9.40	―	0.09%	28.65%	38.68%
LFIC	55 Neutral	₹197.25M	9.57	―	1.70%	-93.62%	-115.49%
TFL	43 Neutral	₹711.55M	-23.53	―	―	-29.62%	-308.12%
GLFL	41 Neutral	₹151.90M	138.56	―	―	―	―
TCIFINANCE	41 Neutral	₹176.35M	-8.05	―	―	797.65%	―