Check Before You Invest : Ad-Manum Finance Ltd

Snapshot

Q.1 Which industry/sub-sector does Ad-Manum Finance Ltd belong to?

Ad-Manum Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Ad-Manum Finance Ltd a good quality company?

Ad-Manum Finance Ltd is a quality company, based on a 9-year financial track record.

Q.3 Is Ad-Manum Finance Ltd undervalued or overvalued?

Ad-Manum Finance Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Ad-Manum Finance Ltd a good buy now?

Ad-Manum Finance 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 Ad-Manum Finance Ltd?

Ad-Manum Finance Ltd Operating Income growth is 20.58% for FY-2025, which is above its 5-year CAGR of 6.21%, indicating faster growth.

Q.2 Return on Assets of Ad-Manum Finance Ltd?

Ad-Manum Finance Ltd Return on Asset is 10.3%, which is above its 5-year historical median of 7.3%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	66.95	54.85
PPOP%	13.07	14.4
RoA%	10.3	7.3

Q.3 Return on Equity (ROE) of Ad-Manum Finance Ltd?

Ad-Manum Finance Ltd Return on Equity is 11.8% for FY-2025, which is above its 5-year historical median of 8.5%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Ad-Manum Finance Ltd?

Ad-Manum Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 13.07% for FY-2025, which is below its 5-year median(14.4%), indicating decreasing margins.

Q.5 Net Profit Margin of Ad-Manum Finance Ltd?

Ad-Manum Finance 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 66.95% for FY-2025, which is above its 5-year median( 54.85%), indicating increasing margins.

Q.6 Total Asset growth of Ad-Manum Finance Ltd?

Ad-Manum Finance Ltd Total Asset growth is 11.54% for FY-2025, which is above its 5-year CAGR of -1.64%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ad-Manum Finance Ltd?

Promoters hold 74.30% of the Ad-Manum Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Ad-Manum Finance Ltd vs Industry Peers?

Ad-Manum Finance Ltd AUM CAGR is -1.64%, 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 Ad-Manum Finance Ltd vs industry peers

Ad-Manum Finance 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%	66.95	15.95
PPOP%	13.07	4.54
RoA%	10.3	1.45

Q.3 Operating efficiency of Ad-Manum Finance Ltd vs industry peers?

Ad-Manum Finance Ltd ROCE (11.6) is above the industry median of (4.4); while the current ROE (8.5) are above than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	66.95	15.95
PPOP%	13.07	4.54
RoA%	10.3	1.45
ROCE%	15.2	4.4
ROE%	11.8	2.7

Valuation & price assessment

Q.1 Stock return of Ad-Manum Finance Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	7%	28.1%	3.2%	-17.7%

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	4.88	7.12	28.96
Price to Book	0.46	0.61	1.11
Price to Sales	3.38	4.20	9.10
EV to EBITDA	4.03	6.66	11.77

Q.4 Valuation ratios of Ad-Manum Finance Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.46% is lower than its historical median of 0.61%, 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?

Ad-Manum Finance Ltd return on invested capital (ROIC) is 11.73% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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