Check Before You Invest : Arman Financial Services Ltd

BSE: 531179 NSE: ARMANFIN ISIN: INE109C01017

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Arman Financial Services Ltd belong to?

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

Q.2 Is Arman Financial Services Ltd a good quality company?

Arman Financial Services Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Arman Financial Services Ltd undervalued or overvalued?

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

Q.4 Is Arman Financial Services Ltd a good buy now?

Arman Financial Services Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Arman Financial Services Ltd?

Arman Financial Services Ltd Operating Income growth is 36.23% for FY-2025, which is above its 5-year CAGR of 22.07%, indicating faster growth.

Q.2 Return on Assets of Arman Financial Services Ltd?

Arman Financial Services Ltd Return on Asset is 4.6%, which is below its 5-year historical median of 5%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	23.74	25.66
PPOP%	58.62	37.93
RoA%	4.6	5

Q.3 Return on Equity (ROE) of Arman Financial Services Ltd?

Arman Financial Services Ltd Return on Equity is 7.8% for FY-2025, which is below its 5-year historical median of 10%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Arman Financial Services Ltd?

Arman Financial Services Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 58.62% for FY-2025, which is above its 5-year median(37.93%), indicating increasing margins.

Q.5 Net Profit Margin of Arman Financial Services Ltd?

Arman Financial 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 23.74% for FY-2025, which is below its 5-year median( 25.66%), indicating decreasing margins.

Q.6 Total Asset growth of Arman Financial Services Ltd?

Arman Financial Services Ltd Total Asset growth is 20.58% for FY-2025, which is below its 5-year CAGR of 27.5%, indicating slower growth.

Q.7 Capital Adequacy ratio of Arman Financial Services Ltd?

Arman Financial Services Ltd Capital Adequacy ratio (CAR) is 37.3% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Arman Financial Services Ltd?

Promoters hold 22.00% of the Arman Financial Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Arman Financial Services Ltd vs Industry Peers?

Arman Financial Services Ltd AUM CAGR is 27.5%, 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 Arman Financial Services Ltd vs industry peers

Arman Financial 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%	23.74	15.95
PPOP%	58.62	4.54
RoA%	4.6	1.45

Q.3 Operating efficiency of Arman Financial Services Ltd vs industry peers?

Arman Financial Services Ltd ROCE (13.1) is above the industry median of (4.4); while the current ROE (10) 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%	23.74	15.95
PPOP%	58.62	4.54
RoA%	4.6	1.45
ROCE%	11.2	4.4
ROE%	7.8	2.7

Valuation & price assessment

Q.1 Stock return of Arman Financial Services Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 26.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	26.3%	21.9%	0.9%	-4.7%

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	36.08	56.99	28.96
Price to Book	2.53	4.67	1.11
Price to Sales	7.62	14.10	9.10
EV to EBITDA	15.97	23.85	11.77

Q.4 Valuation ratios of Arman Financial Services Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 2.53% is lower than its historical median of 4.67%, 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?

Arman Financial Services Ltd return on invested capital (ROIC) is 8.12% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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