BSE: 540181
Salem Erode Investments Ltd.
Operates as a non-banking financial company (NBFC) that lends against gold, based in the Salem-Erode region of Tamil Nadu. The company raises the bulk of its funding through private placements of secured redeemable non-convertible debentures (NCDs) at Rs 1,000 face value; a 36-month monthly income scheme carries a 12% annual coupon paid monthly, while cumulative schemes run for 36 or 68 months. These NCDs are secured at 100% cover against current assets, loans, advances and gold loan receivables, with Vistra ITCL acting as debenture trustee. The Board has also approved a Rights Issue of equity shares for an amount not exceeding Rs 2,293.11 lakhs to existing shareholders. Holding company ICL Fincorp Limited is the largest subscriber, taking Rs 3 crore of the August 2026 NCD tranche. In FY26, total income was Rs 356.67 lakh against Rs 885.89 lakh in FY25, employee costs alone absorbed 108.4% of revenue, other operating expenses took 49.9% and depreciation 35%, producing a net loss of Rs 484.66 lakh for the year. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Interest income from lending. Small, loss-making NBFC funded largely by privately placed secured NCDs and equity from its holding company.
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · standalone | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 3 | 4 | 4 | 4 | 4 |
| EBITDA (ex other income) | 2 | 2 | 1 | (1) | (2) |
| margin % | 57.6 | 47.0 | 15.9 | (27.7) | (58.3) |
| Owners' profit | 1 | (0) | (2) | (5) | (5) |
| EPS, as reported (₹) | 0.62 | (0.08) | (1.59) | (4.12) | (4.23) |
| ROE % · ROCE % | 2.7 · — | (0.4) · — | (7.6) · — | (24.4) · — | (33.3) · — |
| Debt / equity (x) | — | — | — | — | — |
| Cash from operations | (6) | 2 | 15 | 3 | (5) |
| Capex | (0) | (0) | (8) | (1) | (0) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Profit before tax | (1) | (1) | (1) | (1) | (1) | (1) | (1) | (1) |
| Net profit | (1) | (1) | (1) | (1) | (1) | (1) | (1) | (1) |
| EPS (₹) | (1.14) | (0.74) | (1.19) | (1.05) | (0.86) | (1.05) | (1.10) | (1.22) |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| BAJAJ FINANCE LIMITED | 5,70,768 | 28.1 | 4.88 | — | 16.5 | — | 25.2 | 70.7 |
| SHRIRAM FINANCE LIMITED | 1,94,820 | 14.6 | 2.96 | — | 15.2 | — | 22.5 | 74.7 |
| CHOLAMANDALAM IN & FIN CO | 1,31,798 | 22.8 | 4.33 | — | 17.2 | — | 26.5 | 71.2 |
| TATA CAPITAL LIMITED | 1,31,209 | 24.0 | 2.79 | — | 10.4 | — | — | 75.8 |
| MUTHOOT FINANCE LIMITED | 96,352 | 8.5 | 2.42 | — | 26.7 | — | 22.0 | 84.0 |
| SBI CARDS & PAY SER LTD | 50,202 | 22.1 | 3.19 | — | 13.8 | — | — | 33.1 |
| SUNDARAM FINANCE LTD | 43,766 | 19.6 | 2.94 | — | 13.8 | — | — | 78.4 |
| AUTHUM INVEST & INFRA LTD | 42,040 | 7.2 | 2.85 | — | 13.1 | — | — | 90.1 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/B | 1.5 | 1.1 | 155 of 253 | 39% |
| ROE | (33.3) | 3.1 | 247 of 257 | 4% |
| EBITDA margin | (100.2) | 48.6 | 216 of 249 | 13% |
| Revenue growth | (19.7) | 12.6 | 166 of 231 | 28% |
| Profit growth | (15.9) | 7.8 | 137 of 251 | 46% |
| Market cap | 22 | 34 | 162 of 268 | 40% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 13 Oct 2026 · RTA submits quarterly dematerialisation compliance certificate | compliance | minimal | — | — |
| 9 Oct 2026 · Promoter group acquires 33.14 percent via Rights Issue, holding rises to 70.64 percent | ownership changes | medium | — | — |
| 7 Oct 2026 · Post-issue ad published for rights issue allotment basis | compliance | minimal | — | — |
| 1 Oct 2026 · Shareholders approve re-appointment of Independent Director at 95th AGM | management changes | medium | — | — |
| 1 Oct 2026 · 95th AGM voting results: all 3 resolutions passed unanimously | compliance | minimal | — | — |
| 30 Sept 2026 · 95th AGM held on Sep 30, 2026; 3 resolutions tabled | board shareholder meetings | low | — | — |
| 23 Sept 2026 · Insider trading window closed until Q2 results are declared | compliance | minimal | — | — |
| 19 Sept 2026 · Newspaper ad published for revision in Rights Issue Schedule | compliance | minimal | — | — |
| 18 Sept 2026 · Rights Issue period extended by 6 days to October 1, 2026 | corporate actions | medium | — | — |
| 15 Sept 2026 · Promoter renounces 54 lakh rights shares to 22 specific investors | corporate actions | medium | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.