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Check Before You Invest : Arunjyoti Bio Ventures Ltd

BSE: 530881 NSE: ISIN: INE485K01022
  |   Sector:  BFSI   |   Industry:  Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Arunjyoti Bio Ventures Ltd belong to?
Arunjyoti Bio Ventures Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.
Q.2 Is Arunjyoti Bio Ventures Ltd a good quality company?
Arunjyoti Bio Ventures Ltd is a weak quality company, based on a inconsistent 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 Arunjyoti Bio Ventures Ltd undervalued or overvalued?
Arunjyoti Bio Ventures Ltd appears Somewhat 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 - -
Price to Book 3.71 4.50
Price to Sales 3.83 6.13
EV to EBITDA 42.67 41.40
Q.4 Is Arunjyoti Bio Ventures Ltd a good buy now?
Arunjyoti Bio Ventures 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 Arunjyoti Bio Ventures Ltd?
Arunjyoti Bio Ventures Ltd Operating Income growth is 36.47% for FY-2025, which is above its 5-year CAGR of 30.71%, indicating faster growth.

Q.2 Return on Assets of Arunjyoti Bio Ventures Ltd?
Arunjyoti Bio Ventures Ltd Return on Asset is -3.2%, which is below its 5-year historical median of 0.6%, indicating deteriorated earnings on assets.
Current Level 5-year
Historic Median
NPM (%) -6.53 1.24
PPOP (%) - -
RoA (%) -3.2 0.6

Q.3 Return on Equity (ROE) of Arunjyoti Bio Ventures Ltd?
Arunjyoti Bio Ventures Ltd Return on Equity is -10.7% for FY-2025, which is below its 5-year historical median of 2.9%, indicating the business is making worse use of its shareholders capital.

Q.4 Net Profit Margin of Arunjyoti Bio Ventures Ltd?
Arunjyoti Bio Ventures 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 -6.53% for FY-2025, which is below its 5-year median( 1.24%), indicating decreasing margins.

Q.5 Does its ROIC exceed its WACC?
Arunjyoti Bio Ventures Ltd return on invested capital (ROIC) is -0.01% 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.6 Total Asset growth of Arunjyoti Bio Ventures Ltd?
Arunjyoti Bio Ventures Ltd Total Asset growth is 13.21% for FY-2025, which is below its 5-year CAGR of 58.49%, indicating slower growth.

Ownership & governance

D: Promoter shareholding and pledge status of Arunjyoti Bio Ventures Ltd?

Q.1 Promoter shareholding and pledge status of Arunjyoti Bio Ventures Ltd?
Promoters hold 47.64% of the Arunjyoti Bio Ventures Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Arunjyoti Bio Ventures Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Arunjyoti Bio Ventures Ltd vs Industry Peers?
Arunjyoti Bio Ventures Ltd AUM CAGR is 58.49%, compared to the 5-year industry median CAGR of 9.27%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Arunjyoti Bio Ventures Ltd vs industry peers
Arunjyoti Bio Ventures Ltd profit metrics are below the industry median level of -1.27%, indicating weaker profitability compared to peers.
Profit Metrics
Current Level 5-year
Industry Median
NPM (%) -6.53 3.12
PPOP (%) - -7.72
RoA (%) -3.2 0.8

Q.3 Operating efficiency of Arunjyoti Bio Ventures Ltd vs industry peers?
Arunjyoti Bio Ventures Ltd ROCE (3.9) is above the industry median of (1.8); while the current ROE (2.9) 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 (%) -6.53 3.12
PPOP (%) - -7.72
RoA (%) -3.2 0.8
ROCE (%) 4.1 1.8
ROE (%) -10.7 0.9

Valuation & price assessment

Q.1 Stock return of Arunjyoti Bio Ventures Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 32.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
32.5% 81.4% 15.7% -26.1%
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 - - 33.75
Price to Book 3.71 4.50 0.95
Price to Sales 3.83 6.13 12.43
EV to EBITDA 42.67 41.40 10.00
Q.3 Valuation ratios of Arunjyoti Bio Ventures Ltd vs historical and industry averages?
The current Price-to-Book (P/B) ratio of 3.71 is lower than its historical median of 4.50, indicating that the stock is trading below its historical average valuation.

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