Check Before You Invest : Assam Entrade Ltd

BSE: 542911 NSE: ISIN: INE165G01010

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Assam Entrade Ltd belong to?

Assam Entrade Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Assam Entrade Ltd a good quality company?

Assam Entrade Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Assam Entrade Ltd undervalued or overvalued?

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

Q.4 Is Assam Entrade Ltd a good buy now?

Assam Entrade 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 Assam Entrade Ltd?

Assam Entrade Ltd Operating Income growth is 17.61% for FY-2025, which is above its 5-year CAGR of 1.91%, indicating faster growth.

Q.2 Return on Assets of Assam Entrade Ltd?

Assam Entrade Ltd Return on Asset is 4.9%, which is above its 5-year historical median of 2.6%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	35.39	29.2
PPOP%	100	50
RoA%	4.9	2.6

Q.3 Return on Equity (ROE) of Assam Entrade Ltd?

Assam Entrade Ltd Return on Equity is 5% for FY-2025, which is above its 5-year historical median of 2.7%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Assam Entrade Ltd?

Assam Entrade Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 100% for FY-2025, which is above its 5-year median(50%), indicating increasing margins.

Q.5 Net Profit Margin of Assam Entrade Ltd?

Assam Entrade 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 35.39% for FY-2025, which is above its 5-year median( 29.2%), indicating increasing margins.

Q.6 Total Asset growth of Assam Entrade Ltd?

Assam Entrade Ltd Total Asset growth is 8.33% for FY-2025, which is above its 5-year CAGR of 3.03%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Assam Entrade Ltd?

Promoters hold 53.18% of the Assam Entrade Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Assam Entrade Ltd vs Industry Peers?

Assam Entrade Ltd AUM CAGR is 3.03%, compared to the 5-year industry median CAGR of 9.45%, indicating slower growth and losing its market share.

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

Assam Entrade Ltd profit metrics are above the industry median level of -0.85%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	35.39	9.95
PPOP%	100	-13.31
RoA%	4.9	0.8

Q.3 Operating efficiency of Assam Entrade Ltd vs industry peers?

Assam Entrade Ltd ROCE (4.4) is above the industry median of (1.9); while the current ROE (2.7) 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%	35.39	9.95
PPOP%	100	-13.31
RoA%	4.9	0.8
ROCE%	7	1.9
ROE%	5	1.2

Valuation & price assessment

Q.1 Stock return of Assam Entrade Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of 24.14% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	24.1%	38.4%	35.3%

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	24.76	33.44	33.72
Price to Book	1.74	1.18	0.94
Price to Sales	14.9	16.31	12.44
EV to EBITDA	19.35	23.17	9.97

Q.4 Valuation ratios of Assam Entrade Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.74% is higher than its historical median of 1.18%, 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?

Assam Entrade Ltd return on invested capital (ROIC) is 5.21% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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