Check Before You Invest : Abhishek Finlease Ltd

Snapshot

Q.1 Which industry/sub-sector does Abhishek Finlease Ltd belong to?

Abhishek Finlease Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Abhishek Finlease Ltd a good quality company?

Abhishek Finlease Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Abhishek Finlease Ltd undervalued or overvalued?

Abhishek Finlease Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Abhishek Finlease Ltd a good buy now?

Abhishek Finlease 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

Q.1 Total Income growth of Abhishek Finlease Ltd?

Abhishek Finlease Ltd Operating Income growth is -23.81% for FY-2025, which is below its 5-year CAGR of 14.3%, indicating slower growth.

Q.2 Return on Assets of Abhishek Finlease Ltd?

Abhishek Finlease Ltd Return on Asset is 2%, which is below its 5-year historical median of 2.4%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	13.72	18.03
PPOP%	-54.55	-29.17
RoA%	2	2.4

Q.3 Return on Equity (ROE) of Abhishek Finlease Ltd?

Abhishek Finlease Ltd Return on Equity is 2.2% for FY-2025, which is below its 5-year historical median of 2.7%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Abhishek Finlease Ltd?

Abhishek Finlease Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -54.55% for FY-2025, which is below its 5-year median(-29.17%), indicating decreasing margins.

Q.5 Net Profit Margin of Abhishek Finlease Ltd?

Abhishek Finlease 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 13.72% for FY-2025, which is below its 5-year median( 18.03%), indicating decreasing margins.

Q.6 Total Asset growth of Abhishek Finlease Ltd?

Abhishek Finlease Ltd Total Asset growth is 32.22% for FY-2025, which is above its 5-year CAGR of 8.14%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Abhishek Finlease Ltd?

Promoters hold 72.28% of the Abhishek Finlease Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Abhishek Finlease Ltd vs Industry Peers?

Abhishek Finlease Ltd AUM CAGR is 8.14%, compared to the 5-year industry median CAGR of 9.9%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Abhishek Finlease Ltd vs industry peers

Abhishek Finlease Ltd profit metrics are in line with the industry median level of 7.19%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	13.72	15.95
PPOP%	-54.55	4.17
RoA%	2	1.45

Q.3 Operating efficiency of Abhishek Finlease Ltd vs industry peers?

Abhishek Finlease Ltd ROCE (3.4) is below the industry median of (4.4); while the current ROE (2.7) are in line with than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	13.72	15.95
PPOP%	-54.55	4.17
RoA%	2	1.45
ROCE%	2.9	4.4
ROE%	2.2	2.7

Valuation & price assessment

Q.1 Stock return of Abhishek Finlease Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 30.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	30.9%	29.4%	22.1%	-25.6%

Q.3 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	-	111.27	28.96
Price to Book	3.51	3.20	1.11
Price to Sales	45.12	56.49	9.10
EV to EBITDA	250.61	72.14	11.77

Q.4 Valuation ratios of Abhishek Finlease Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 3.51% is higher than its historical median of 3.20%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Abhishek Finlease Ltd return on invested capital (ROIC) is 2.2% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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