Check Before You Invest : Adcon Capital Services Ltd

Snapshot

Q.1 Which industry/sub-sector does Adcon Capital Services Ltd belong to?

Adcon Capital Services Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Adcon Capital Services Ltd a good quality company?

Adcon Capital Services Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Adcon Capital Services Ltd undervalued or overvalued?

Adcon Capital Services Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Adcon Capital Services Ltd a good buy now?

Adcon Capital Services 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 Adcon Capital Services Ltd?

Adcon Capital Services Ltd Operating Income growth is 92.86% for FY-2025, which is above its 5-year CAGR of 69.73%, indicating faster growth.

Q.2 Return on Assets of Adcon Capital Services Ltd?

Adcon Capital Services Ltd Return on Asset is 5.7%, which is above its 5-year historical median of 3.3%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	67.35	41.44
PPOP%	117.97	27.27
RoA%	5.7	3.3

Q.3 Return on Equity (ROE) of Adcon Capital Services Ltd?

Adcon Capital Services Ltd Return on Equity is 6.6% for FY-2025, which is above its 5-year historical median of 3.3%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Adcon Capital Services Ltd?

Adcon Capital Services Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 117.97% for FY-2025, which is above its 5-year median(27.27%), indicating increasing margins.

Q.5 Net Profit Margin of Adcon Capital Services Ltd?

Adcon Capital Services 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 67.35% for FY-2025, which is above its 5-year median( 41.44%), indicating increasing margins.

Q.6 Total Asset growth of Adcon Capital Services Ltd?

Adcon Capital Services Ltd Total Asset growth is 33.86% for FY-2025, which is below its 5-year CAGR of 65.35%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Adcon Capital Services Ltd?

Promoters hold 0.00% of the Adcon Capital Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Adcon Capital Services Ltd vs Industry Peers?

Adcon Capital Services Ltd AUM CAGR is 65.35%, compared to the 5-year industry median CAGR of 9.9%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Adcon Capital Services Ltd vs industry peers

Adcon Capital Services Ltd profit metrics are above the industry median level of 7.31%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	67.35	15.95
PPOP%	117.97	4.54
RoA%	5.7	1.45

Q.3 Operating efficiency of Adcon Capital Services Ltd vs industry peers?

Adcon Capital Services Ltd ROCE (3.9) is below the industry median of (4.4); while the current ROE (3.3) are above 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%	67.35	15.95
PPOP%	117.97	4.54
RoA%	5.7	1.45
ROCE%	8.3	4.4
ROE%	6.6	2.7

Valuation & price assessment

Q.1 Stock return of Adcon Capital Services Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -28.2% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-28.2%	9.9%	-34.9%	-33.3%

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	7.01	14.84	28.96
Price to Book	0.43	1.03	1.11
Price to Sales	3.03	13.85	9.10
EV to EBITDA	3.25	11.11	11.77

Q.4 Valuation ratios of Adcon Capital Services Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.43% is lower than its historical median of 1.03%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Adcon Capital Services Ltd return on invested capital (ROIC) is 6.59% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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