Shah Investor's Home IPO

Strengths · 8

• 01The company has a very long record, having started in October 1994, which is more than 30 years in broking.
• 02It has served more than 1,00,000 demat accounts, with over 38,000 active clients as on 31 March 2026.
• 03The authorised person network of more than 181 sub-brokers lets it reach clients without opening a branch for each one.
• 04It earns from several lines, including broking, mutual fund distribution, margin funding and securities lending, rather than from trading commission alone.
• 05The margin is healthy, with a PAT margin of 18.24%.
• 06Debt is low at Rs 18.47 crore against a net worth of Rs 179.71 crore.
• 07Net worth has grown steadily, from Rs 150.54 crore in FY2024 to Rs 179.71 crore in FY2026.
• 08The whole issue is fresh capital with no offer for sale.

Risks · 8

• 01Profit fell sharply in the latest year. Profit after tax dropped 44% from Rs 23.42 crore in FY2025 to Rs 13.11 crore in FY2026, and total income fell from Rs 94.47 crore to Rs 72.40 crore.
• 02The issue is priced at about 26.94 times earnings on an EPS of Rs 6.20, which is high for a business whose profit has just fallen by almost half.
• 03Return ratios are weak, with RoNW of only 7.35% and RoCE of 10.61%.
• 04Broking income depends directly on market activity. When trading volumes fall, as they did in FY2026, revenue falls with them and costs stay.
• 05Discount brokers and large app-based platforms have pushed commissions down sharply, and a traditional branch based broker competes on a higher cost base.
• 06Rs 60 crore of the issue goes into working capital, which in a broker largely means funding client margin loans, and those carry credit risk if markets fall suddenly.
• 07Borrowing more than tripled in one year, from Rs 5.71 crore to Rs 18.47 crore.
• 08The business is concentrated in Gujarat and Maharashtra, and SEBI rules on broking, margin and derivatives change often and affect earnings directly.

Shah Investor's Home Limited was started in October 1994 and has more than three decades in the securities market. It is a retail broking company, meaning it helps individual investors buy and sell shares, IPOs and other securities, for both resident and non-resident Indians.

Its main business is equity and derivatives broking. Alongside that it distributes mutual funds, provides margin funding, which is lending to clients so they can buy more shares than their own cash allows, and runs stock lending and borrowing services, all under the brand name Shah Investors.

As on 31 March 2026 it had served more than 1,00,000 demat accounts, with over 38,000 active clients and a network of more than 181 authorised persons, who are sub-brokers working under its licence. It operates 11 branches across Mumbai, Ahmedabad, Vadodara, Junagadh, Gandhinagar and Rajkot, and most of its customers are in Gujarat and Maharashtra.

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