Check Before You Invest : Ascom Leasing & Investments Ltd

Snapshot

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

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

Q.2 Is Ascom Leasing & Investments Ltd a good quality company?

Ascom Leasing & Investments Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Ascom Leasing & Investments Ltd undervalued or overvalued?

Ascom Leasing & Investments Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Ascom Leasing & Investments Ltd a good buy now?

Ascom Leasing & Investments Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Ascom Leasing & Investments Ltd?

Ascom Leasing & Investments Ltd Operating Income growth is 4.79% for FY-2025, which is below its 5-year CAGR of 4.88%, indicating slower growth.

Q.2 Return on Assets of Ascom Leasing & Investments Ltd?

Ascom Leasing & Investments Ltd Return on Asset is 9.4%, which is below its 5-year historical median of 12%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	39.56	40.26
PPOP%	-	-
RoA%	9.4	12

Q.3 Return on Equity (ROE) of Ascom Leasing & Investments Ltd?

Ascom Leasing & Investments Ltd Return on Equity is 10.8% for FY-2025, which is below its 5-year historical median of 13.4%, indicating the business is making worse use of its shareholders capital.

Q.4 Net Profit Margin of Ascom Leasing & Investments Ltd?

Ascom Leasing & Investments 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 39.56% for FY-2025, which is below its 5-year median( 40.26%), indicating decreasing margins.

Q.5 Total Asset growth of Ascom Leasing & Investments Ltd?

Ascom Leasing & Investments Ltd Total Asset growth is 22.45% for FY-2025, which is above its 5-year CAGR of 10.15%, indicating faster growth.

Q.6 Capital Adequacy ratio of Ascom Leasing & Investments Ltd?

Ascom Leasing & Investments Ltd Capital Adequacy ratio (CAR) is 95% 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 Ascom Leasing & Investments Ltd?

Promoters hold 74.85% of the Ascom Leasing & Investments Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Ascom Leasing & Investments Ltd vs Industry Peers?

Ascom Leasing & Investments Ltd AUM CAGR is 10.15%, 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 Ascom Leasing & Investments Ltd vs industry peers

Ascom Leasing & Investments 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%	39.56	15.95
PPOP%	-	4.54
RoA%	9.4	1.45

Q.3 Operating efficiency of Ascom Leasing & Investments Ltd vs industry peers?

Ascom Leasing & Investments Ltd ROCE (17.4) is above the industry median of (4.4); while the current ROE (13.4) 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%	39.56	15.95
PPOP%	-	4.54
RoA%	9.4	1.45
ROCE%	14.4	4.4
ROE%	10.8	2.7

Valuation & price assessment

Q.1 Stock return of Ascom Leasing & Investments Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of 50.53% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	50.5%	-9.5%	166%

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	60.23	29.49	28.96
Price to Book	6.18	3.41	1.11
Price to Sales	23.82	11.76	9.10
EV to EBITDA	40.84	20.70	11.77

Q.4 Valuation ratios of Ascom Leasing & Investments Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 6.18% is higher than its historical median of 3.41%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Ascom Leasing & Investments Ltd return on invested capital (ROIC) is 10.72% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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