Check Before You Invest : BF Investment Ltd

Snapshot

Q.1 Which industry/sub-sector does BF Investment Ltd belong to?

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

Q.2 Is BF Investment Ltd a good quality company?

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

Q.3 Is BF Investment Ltd undervalued or overvalued?

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

Q.4 Is BF Investment Ltd a good buy now?

BF Investment 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 BF Investment Ltd?

BF Investment Ltd Operating Income growth is 15.54% for FY-2025, which is above its 5-year CAGR of 13.62%, indicating faster growth.

Q.2 Return on Assets of BF Investment Ltd?

BF Investment Ltd Return on Asset is 3.1%, which is in line with its 5-year historical median of 3.1%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	67.99	68.75
PPOP%	15.18	25.84
RoA%	3.1	3.1

Q.3 Return on Equity (ROE) of BF Investment Ltd?

BF Investment Ltd Return on Equity is 3.2% for FY-2025, which is in line with its 5-year historical median of 3.2%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of BF Investment Ltd?

BF Investment Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 15.18% for FY-2025, which is below its 5-year median(25.84%), indicating decreasing margins.

Q.5 Net Profit Margin of BF Investment Ltd?

BF Investment 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 67.99% for FY-2025, which is below its 5-year median( 68.75%), indicating decreasing margins.

Q.6 Total Asset growth of BF Investment Ltd?

BF Investment Ltd Total Asset growth is 7.51% for FY-2025, which is below its 5-year CAGR of 26.92%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of BF Investment Ltd?

Promoters hold 74.13% of the BF Investment Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of BF Investment Ltd vs Industry Peers?

BF Investment Ltd AUM CAGR is 26.92%, 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 BF Investment Ltd vs industry peers

BF Investment Ltd profit metrics are above the industry median level of -0.88%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	67.99	9.95
PPOP%	15.18	-13.4
RoA%	3.1	0.8

Q.3 Operating efficiency of BF Investment Ltd vs industry peers?

BF Investment Ltd ROCE (4.3) is above the industry median of (1.9); while the current ROE (3.2) 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%	67.99	9.95
PPOP%	15.18	-13.4
RoA%	3.1	0.8
ROCE%	4.5	1.9
ROE%	3.2	1.2

Valuation & price assessment

Q.1 Stock return of BF Investment Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 13.2% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	13.2%	6.8%	1.4%	-15.6%

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	17.33	26.55	33.72
Price to Book	0.51	0.67	0.94
Price to Sales	12.14	18.84	12.44
EV to EBITDA	9.19	17.77	9.97

Q.4 Valuation ratios of BF Investment Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.51% is lower than its historical median of 0.67%, 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?

BF Investment Ltd return on invested capital (ROIC) is 3.22% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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