Check Before You Invest : Bengal & Assam Company Ltd

BSE: 533095 NSE: BENGALASM ISIN: INE083K01017

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Bengal & Assam Company Ltd belong to?

Bengal & Assam Company Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Bengal & Assam Company Ltd a good quality company?

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

Q.3 Is Bengal & Assam Company Ltd undervalued or overvalued?

Bengal & Assam Company Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Bengal & Assam Company Ltd a good buy now?

Bengal & Assam Company 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 Bengal & Assam Company Ltd?

Bengal & Assam Company Ltd Operating Income growth is 2.91% for FY-2025, which is above its 5-year CAGR of -2.2%, indicating faster growth.

Q.2 Return on Assets of Bengal & Assam Company Ltd?

Bengal & Assam Company Ltd Return on Asset is 9.4%, which is in line with its 5-year historical median of 9.4%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	72.64	72.64
PPOP%	-3.52	-3.52
RoA%	9.4	9.4

Q.3 Return on Equity (ROE) of Bengal & Assam Company Ltd?

Bengal & Assam Company Ltd Return on Equity is 10.3% for FY-2025, which is in line with its 5-year historical median of 10.3%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Bengal & Assam Company Ltd?

Bengal & Assam Company Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -3.52% for FY-2025, which is in line with its 5-year median(-3.52%), indicating stable margins.

Q.5 Net Profit Margin of Bengal & Assam Company Ltd?

Bengal & Assam Company 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 72.64% for FY-2025, which is in line with its 5-year median( 72.64%), indicating stable margins.

Q.6 Total Asset growth of Bengal & Assam Company Ltd?

Bengal & Assam Company Ltd Total Asset growth is 4.6% for FY-2025, which is above its 5-year CAGR of 0%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Bengal & Assam Company Ltd?

Promoters hold 72.87% of the Bengal & Assam Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Bengal & Assam Company Ltd vs Industry Peers?

Bengal & Assam Company Ltd AUM CAGR is 0%, 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 Bengal & Assam Company Ltd vs industry peers

Bengal & Assam Company 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%	72.64	15.95
PPOP%	-3.52	4.54
RoA%	9.4	1.45

Q.3 Operating efficiency of Bengal & Assam Company Ltd vs industry peers?

Bengal & Assam Company Ltd ROCE (11.6) is above the industry median of (4.4); while the current ROE (10.3) 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%	72.64	15.95
PPOP%	-3.52	4.54
RoA%	9.4	1.45
ROCE%	11.6	4.4
ROE%	10.3	2.7

Valuation & price assessment

Q.1 Stock return of Bengal & Assam Company Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 29.2% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	29.2%	36.6%	20.3%	-13.4%

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	60.2	60.84	28.96
Price to Book	6.03	5.71	1.11
Price to Sales	44.82	43.31	9.10
EV to EBITDA	49.43	45.50	11.77

Q.4 Valuation ratios of Bengal & Assam Company Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 6.03% is higher than its historical median of 5.71%, 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?

Bengal & Assam Company Ltd return on invested capital (ROIC) is 9.86% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

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