Check Before You Invest : Amarnath Securities Ltd

Snapshot

Q.1 Which industry/sub-sector does Amarnath Securities Ltd belong to?

Amarnath Securities Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Amarnath Securities Ltd a good quality company?

Amarnath Securities Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Amarnath Securities Ltd undervalued or overvalued?

Amarnath Securities Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Amarnath Securities Ltd a good buy now?

Amarnath Securities 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 Amarnath Securities Ltd?

Amarnath Securities Ltd Operating Income growth is -4.88% for FY-2025, which is below its 5-year CAGR of -1.93%, indicating slower growth.

Q.2 Return on Assets of Amarnath Securities Ltd?

Amarnath Securities Ltd Return on Asset is 3.7%, which is above its 5-year historical median of 3%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	49.5	35.08
PPOP%	3.85	3.85
RoA%	3.7	3

Q.3 Return on Equity (ROE) of Amarnath Securities Ltd?

Amarnath Securities Ltd Return on Equity is 4.4% 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 Amarnath Securities Ltd?

Amarnath Securities Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 3.85% for FY-2025, which is in line with its 5-year median(3.85%), indicating stable margins.

Q.5 Net Profit Margin of Amarnath Securities Ltd?

Amarnath Securities 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 49.5% for FY-2025, which is above its 5-year median( 35.08%), indicating increasing margins.

Q.6 Total Asset growth of Amarnath Securities Ltd?

Amarnath Securities Ltd Total Asset growth is 6.5% for FY-2025, which is above its 5-year CAGR of 6.17%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Amarnath Securities Ltd?

Promoters hold 0.00% of the Amarnath Securities Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Amarnath Securities Ltd vs Industry Peers?

Amarnath Securities Ltd AUM CAGR is 6.17%, 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 Amarnath Securities Ltd vs industry peers

Amarnath Securities 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%	49.5	15.95
PPOP%	3.85	4.54
RoA%	3.7	1.45

Q.3 Operating efficiency of Amarnath Securities Ltd vs industry peers?

Amarnath Securities Ltd ROCE (5) is above 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 top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	49.5	15.95
PPOP%	3.85	4.54
RoA%	3.7	1.45
ROCE%	5.9	4.4
ROE%	4.4	2.7

Valuation & price assessment

Q.1 Stock return of Amarnath Securities Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -1.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-1.3%	1.1%	-17.6%	-10%

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	23.9	60.98	28.96
Price to Book	0.95	1.99	1.11
Price to Sales	11.39	22.77	9.10
EV to EBITDA	18.91	41.31	11.77

Q.4 Valuation ratios of Amarnath Securities Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.95% is lower than its historical median of 1.99%, 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?

Amarnath Securities Ltd return on invested capital (ROIC) is 4.14% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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