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Check Before You Invest : 3P Land Holdings Ltd

BSE: 516092 NSE: 3PLAND ISIN: INE105C01023
  |   Sector:  BFSI   |   Industry:  Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does 3P Land Holdings Ltd belong to?
3P Land Holdings Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.
Q.2 Is 3P Land Holdings Ltd a good quality company?
3P Land Holdings Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is 3P Land Holdings Ltd undervalued or overvalued?
3P Land Holdings Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 30.38 31.75
Price to Book 0.38 0.53
Price to Sales 18.59 18.93
EV to EBITDA 22.55 23.13
Q.4 Is 3P Land Holdings Ltd a good buy now?
3P Land Holdings Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.

  • How efficiently has it grown and managed operations?

    By checking its Total Asset growth.

  • How strong is its Capital position and Asset Quality?

    By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of 3P Land Holdings Ltd?
3P Land Holdings Ltd Operating Income growth is 25.72% for FY-2025, which is above its 5-year CAGR of 19.36%, indicating faster growth.

Q.2 Return on Assets of 3P Land Holdings Ltd?
3P Land Holdings Ltd Return on Asset is 1.6%, which is below its 5-year historical median of 2.1%, indicating deteriorated earnings on assets.
Current Level 5-year
Historic Median
NPM (%) 46.73 50.82
PPOP (%) 13.64 18.05
RoA (%) 1.6 2.1

Q.3 Return on Equity (ROE) of 3P Land Holdings Ltd?
3P Land Holdings Ltd Return on Equity is 1.7% for FY-2025, which is below its 5-year historical median of 2.2%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of 3P Land Holdings Ltd?
3P Land Holdings Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 13.64% for FY-2025, which is below its 5-year median(18.05%), indicating decreasing margins.

Q.5 Net Profit Margin of 3P Land Holdings Ltd?
3P Land Holdings Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 46.73% for FY-2025, which is below its 5-year median( 50.82%), indicating decreasing margins.

Q.6 Does its ROIC exceed its WACC?
3P Land Holdings Ltd return on invested capital (ROIC) is 1.73% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of 3P Land Holdings Ltd?
3P Land Holdings Ltd Total Asset growth is 46.37% for FY-2025, which is above its 5-year CAGR of 39.95%, indicating faster growth.

Ownership & governance

D: Promoter shareholding and pledge status of 3P Land Holdings Ltd?

Q.1 Promoter shareholding and pledge status of 3P Land Holdings Ltd?
Promoters hold 73.30% of the 3P Land Holdings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does 3P Land Holdings Ltd performance compare with that of its Peers?

Q.1 AUM Growth of 3P Land Holdings Ltd vs Industry Peers?
3P Land Holdings Ltd AUM CAGR is 39.95%, compared to the 5-year industry median CAGR of 9.08%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of 3P Land Holdings Ltd vs industry peers
3P Land Holdings Ltd profit metrics are above the industry median level of -1.22%, indicating stronger profitability compared to peers.
Profit Metrics
Current Level 5-year
Industry Median
NPM (%) 46.73 3.22
PPOP (%) 13.64 -7.69
RoA (%) 1.6 0.8

Q.3 Operating efficiency of 3P Land Holdings Ltd vs industry peers?
3P Land Holdings Ltd ROCE (2.9) is above the industry median of (1.8); while the current ROE (2.2) are above than the 5-year average Industry ROE (0.9). This shows that the business is positioned in the top quartile of the industry.
Operating Efficiency
Current Level 5-year
Industry Median
NPM (%) 46.73 3.22
PPOP (%) 13.64 -7.69
RoA (%) 1.6 0.8
ROCE (%) 2.3 1.8
ROE (%) 1.7 0.9

Valuation & price assessment

Q.1 Stock return of 3P Land Holdings Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 13.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
13.5% 17.9% 17.5% -14.1%
Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 30.38 31.75 33.75
Price to Book 0.38 0.53 0.95
Price to Sales 18.59 18.93 12.43
EV to EBITDA 22.55 23.13 10.00
Q.3 Valuation ratios of 3P Land Holdings Ltd vs historical and industry averages?
The current Price-to-Book (P/B) ratio of 0.38 is lower than its historical median of 0.53, indicating that the stock is trading below its historical average valuation.

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