Check Before You Invest : ArihantS Securities Ltd

BSE: 531017 NSE: ISIN: INE190D01015

| Sector: BFSI | Industry: Finance - Investment

Snapshot

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

ArihantS Securities Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

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

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

Q.3 Is ArihantS Securities Ltd undervalued or overvalued?

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

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

ArihantS 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 ArihantS Securities Ltd?

ArihantS Securities Ltd Operating Income growth is 3.85% for FY-2025, which is below its 5-year CAGR of 21.98%, indicating slower growth.

Q.2 Return on Assets of ArihantS Securities Ltd?

ArihantS Securities Ltd Return on Asset is 1.2%, which is below its 5-year historical median of 3.2%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	183.46	276.62
PPOP%	-57.46	-57.46
RoA%	1.2	3.2

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

ArihantS Securities Ltd Return on Equity is 1.3% for FY-2025, which is below its 5-year historical median of 3.4%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of ArihantS Securities Ltd?

ArihantS Securities Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -57.46% for FY-2025, which is in line with its 5-year median(-57.46%), indicating stable margins.

Q.5 Net Profit Margin of ArihantS Securities Ltd?

ArihantS 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 183.46% for FY-2025, which is below its 5-year median( 276.62%), indicating decreasing margins.

Q.6 Total Asset growth of ArihantS Securities Ltd?

ArihantS Securities Ltd Total Asset growth is -4.45% for FY-2025, which is below its 5-year CAGR of 48.8%, indicating slower growth.

Ownership & governance

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

Promoters hold 46.81% of the ArihantS Securities Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

ArihantS Securities Ltd AUM CAGR is 48.8%, compared to the 5-year industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of ArihantS Securities Ltd vs industry peers

ArihantS Securities Ltd profit metrics are in line with the industry median level of -0.85%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	183.46	9.95
PPOP%	-57.46	-13.31
RoA%	1.2	0.8

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

ArihantS Securities Ltd ROCE (4.5) is above the industry median of (1.9); while the current ROE (3.4) are above than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	183.46	9.95
PPOP%	-57.46	-13.31
RoA%	1.2	0.8
ROCE%	1.7	1.9
ROE%	1.3	1.2

Valuation & price assessment

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

Over the last 9 years, the stock has delivered a CAGR of 11.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	11.5%	44.7%	31.8%	-20.6%

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	-	9.82	33.72
Price to Book	0.28	0.34	0.94
Price to Sales	37.7	41.28	12.44
EV to EBITDA	-22.96	6.70	9.97

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

The current Price to book ratio (P/B) 0.28% is lower than its historical median of 0.34%, 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?

ArihantS Securities Ltd return on invested capital (ROIC) is 1.26% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check more companies

1. Cholamandalam Fin.

2. TVS Holdings

3. Capri Global Capital

4. Maharashtra Scooters

9. Religare Enterprises

10. Pilani Investment

Check trending companies

1. Union Bank Of India

2. Lloyds Metals & Energy Ltd.

3. Astral Ltd.

4. Max Healthcare Institute Ltd.

5. Rainbow Childrens Medicare Ltd.