Check Before You Invest : Abhinav Leasing & Finance Ltd

Snapshot

Q.1 Which industry/sub-sector does Abhinav Leasing & Finance Ltd belong to?

Abhinav Leasing & Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Abhinav Leasing & Finance Ltd a good quality company?

Abhinav Leasing & Finance Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Abhinav Leasing & Finance Ltd undervalued or overvalued?

Abhinav Leasing & Finance Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Abhinav Leasing & Finance Ltd a good buy now?

Abhinav Leasing & 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 Abhinav Leasing & Finance Ltd?

Abhinav Leasing & Finance Ltd Operating Income growth is 16.22% for FY-2025, which is above its 5-year CAGR of 5.33%, indicating faster growth.

Q.2 Return on Assets of Abhinav Leasing & Finance Ltd?

Abhinav Leasing & Finance Ltd Return on Asset is 0.6%, which is above its 5-year historical median of 0.5%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	0.59	0.22
PPOP%	92.98	92.98
RoA%	0.6	0.5

Q.3 Return on Equity (ROE) of Abhinav Leasing & Finance Ltd?

Abhinav Leasing & Finance Ltd Return on Equity is 3.9% for FY-2025, which is above its 5-year historical median of 1.7%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Abhinav Leasing & Finance Ltd?

Abhinav Leasing & Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 92.98% for FY-2025, which is in line with its 5-year median(92.98%), indicating stable margins.

Q.5 Net Profit Margin of Abhinav Leasing & Finance Ltd?

Abhinav Leasing & 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 0.59% for FY-2025, which is above its 5-year median( 0.22%), indicating increasing margins.

Q.6 Total Asset growth of Abhinav Leasing & Finance Ltd?

Abhinav Leasing & Finance Ltd Total Asset growth is -28.67% for FY-2025, which is below its 5-year CAGR of 27.71%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Abhinav Leasing & Finance Ltd?

Promoters hold 3.66% of the Abhinav Leasing & Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Abhinav Leasing & Finance Ltd vs Industry Peers?

Abhinav Leasing & Finance Ltd AUM CAGR is 27.71%, 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 Abhinav Leasing & Finance Ltd vs industry peers

Abhinav Leasing & Finance Ltd profit metrics are in line with the industry median level of 7.31%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	0.59	15.95
PPOP%	92.98	4.54
RoA%	0.6	1.45

Q.3 Operating efficiency of Abhinav Leasing & Finance Ltd vs industry peers?

Abhinav Leasing & Finance Ltd ROCE (7.8) is above the industry median of (4.4); while the current ROE (1.7) are below 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%	0.59	15.95
PPOP%	92.98	4.54
RoA%	0.6	1.45
ROCE%	2.1	4.4
ROE%	3.9	2.7

Valuation & price assessment

Q.1 Stock return of Abhinav Leasing & Finance Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -24.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-24.8%	11.1%	-14.3%	-22%

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	10.88	80.38	28.96
Price to Book	0.97	1.65	1.11
Price to Sales	0.97	0.32	9.10
EV to EBITDA	3.11	9.66	11.77

Q.4 Valuation ratios of Abhinav Leasing & Finance Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.97% is lower than its historical median of 1.65%, 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?

Abhinav Leasing & Finance Ltd return on invested capital (ROIC) is 1.52% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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