Check Before You Invest : Asia Capital Ltd

Snapshot

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

Asia Capital Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

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

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

Q.3 Is Asia Capital Ltd undervalued or overvalued?

Asia Capital Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

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

Asia 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 Asia Capital Ltd?

Asia Capital Ltd Operating Income growth is -11.11% for FY-2025, which is below its 5-year CAGR of 0.42%, indicating slower growth.

Q.2 Return on Assets of Asia Capital Ltd?

Asia Capital Ltd Return on Asset is 4.7%, which is above its 5-year historical median of 3.6%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	62.56	40.11
PPOP%	46.43	7.69
RoA%	4.7	3.6

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

Asia Capital Ltd Return on Equity is 6% for FY-2025, which is above its 5-year historical median of 4.3%, indicating the business is making better use of its shareholders capital.

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

Asia Capital Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 46.43% for FY-2025, which is above its 5-year median(7.69%), indicating increasing margins.

Q.5 Net Profit Margin of Asia Capital Ltd?

Asia 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 62.56% for FY-2025, which is above its 5-year median( 40.11%), indicating increasing margins.

Q.6 Total Asset growth of Asia Capital Ltd?

Asia Capital Ltd Total Asset growth is 7.38% for FY-2025, which is below its 5-year CAGR of 9.29%, indicating slower growth.

Ownership & governance

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

Promoters hold 75.00% of the Asia Capital Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Asia Capital Ltd AUM CAGR is 9.29%, 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 Asia Capital Ltd vs industry peers

Asia Capital Ltd profit metrics are above the industry median level of 7.19%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	62.56	15.95
PPOP%	46.43	4.17
RoA%	4.7	1.45

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

Asia Capital Ltd ROCE (5.1) is above the industry median of (4.4); while the current ROE (4.3) 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%	62.56	15.95
PPOP%	46.43	4.17
RoA%	4.7	1.45
ROCE%	6.4	4.4
ROE%	6	2.7

Valuation & price assessment

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

Over the last 9 years, the stock has delivered a CAGR of 15.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	15.7%	27.7%	48%	208.9%

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	119.59	26.24	28.96
Price to Book	3.09	1.16	1.11
Price to Sales	59.57	10.51	9.10
EV to EBITDA	76.14	22.15	11.77

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

The current Price to book ratio (P/B) 3.09% is higher than its historical median of 1.16%, 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?

Asia Capital Ltd return on invested capital (ROIC) is 4.71% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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