Check Before You Invest : Ashirwad Capital Ltd

BSE: 512247 NSE: ISIN: INE894A01026

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Ashirwad Capital Ltd belong to?

Ashirwad Capital Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Ashirwad Capital Ltd a good quality company?

Ashirwad Capital Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Ashirwad Capital Ltd undervalued or overvalued?

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

Q.4 Is Ashirwad Capital Ltd a good buy now?

Ashirwad Capital 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 Ashirwad Capital Ltd?

Ashirwad Capital Ltd Operating Income growth is -37.2% for FY-2025, which is below its 5-year CAGR of 22.07%, indicating slower growth.

Q.2 Return on Assets of Ashirwad Capital Ltd?

Ashirwad Capital Ltd Return on Asset is 4%, which is below its 5-year historical median of 6.9%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	81.55	92.98
PPOP%	-41.11	65
RoA%	4	6.9

Q.3 Return on Equity (ROE) of Ashirwad Capital Ltd?

Ashirwad Capital Ltd Return on Equity is 4.4% for FY-2025, which is below its 5-year historical median of 7.3%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Ashirwad Capital Ltd?

Ashirwad Capital Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -41.11% for FY-2025, which is below its 5-year median(65%), indicating decreasing margins.

Q.5 Net Profit Margin of Ashirwad Capital Ltd?

Ashirwad Capital 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 81.55% for FY-2025, which is below its 5-year median( 92.98%), indicating decreasing margins.

Q.6 Total Asset growth of Ashirwad Capital Ltd?

Ashirwad Capital Ltd Total Asset growth is 17.42% for FY-2025, which is below its 5-year CAGR of 27.73%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ashirwad Capital Ltd?

Promoters hold 51.00% of the Ashirwad Capital Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Ashirwad Capital Ltd vs Industry Peers?

Ashirwad Capital Ltd AUM CAGR is 27.73%, 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 Ashirwad Capital Ltd vs industry peers

Ashirwad Capital 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%	81.55	9.95
PPOP%	-41.11	-13.31
RoA%	4	0.8

Q.3 Operating efficiency of Ashirwad Capital Ltd vs industry peers?

Ashirwad Capital Ltd ROCE (7.6) is above the industry median of (1.9); while the current ROE (7.3) 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%	81.55	9.95
PPOP%	-41.11	-13.31
RoA%	4	0.8
ROCE%	5.2	1.9
ROE%	4.4	1.2

Valuation & price assessment

Q.1 Stock return of Ashirwad Capital Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 8.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	8.5%	10.2%	2.3%	-29.6%

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	25	27.36	33.72
Price to Book	1.25	1.87	0.94
Price to Sales	17.65	25.85	12.44
EV to EBITDA	19.38	24.15	9.97

Q.4 Valuation ratios of Ashirwad Capital Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.25% is lower than its historical median of 1.87%, 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?

Ashirwad Capital Ltd return on invested capital (ROIC) is 4.38% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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