Check Before You Invest : Balmer Lawrie Investments Ltd

BSE: 532485 NSE: BLIL ISIN: INE525F01025

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Balmer Lawrie Investments Ltd belong to?

Balmer Lawrie Investments Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Balmer Lawrie Investments Ltd a good quality company?

Balmer Lawrie Investments Ltd is a average quality company, based on a somewhat consistent 7-year financial track record.

Q.3 Is Balmer Lawrie Investments Ltd undervalued or overvalued?

Balmer Lawrie Investments Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Balmer Lawrie Investments Ltd a good buy now?

Balmer Lawrie Investments 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 Balmer Lawrie Investments Ltd?

Balmer Lawrie Investments Ltd Operating Income growth is 13.98% for FY-2025, which is above its 5-year CAGR of 3.08%, indicating faster growth.

Q.2 Return on Assets of Balmer Lawrie Investments Ltd?

Balmer Lawrie Investments Ltd Return on Asset is 51.1%, which is above its 5-year historical median of 44%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	96.03	96.5
PPOP%	13.64	10.29
RoA%	51.1	44

Q.3 Return on Equity (ROE) of Balmer Lawrie Investments Ltd?

Balmer Lawrie Investments Ltd Return on Equity is 52.3% for FY-2025, which is above its 5-year historical median of 47.8%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Balmer Lawrie Investments Ltd?

Balmer Lawrie Investments Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 13.64% for FY-2025, which is above its 5-year median(10.29%), indicating increasing margins.

Q.5 Net Profit Margin of Balmer Lawrie Investments Ltd?

Balmer Lawrie Investments 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 96.03% for FY-2025, which is below its 5-year median( 96.5%), indicating decreasing margins.

Q.6 Total Asset growth of Balmer Lawrie Investments Ltd?

Balmer Lawrie Investments Ltd Total Asset growth is 7.07% for FY-2025, which is above its 5-year CAGR of -0.1%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Balmer Lawrie Investments Ltd?

Promoters hold 59.67% of the Balmer Lawrie Investments Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Balmer Lawrie Investments Ltd vs Industry Peers?

Balmer Lawrie Investments Ltd AUM CAGR is -0.1%, 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 Balmer Lawrie Investments Ltd vs industry peers

Balmer Lawrie Investments Ltd profit metrics are above the industry median level of 7.31%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	96.03	15.95
PPOP%	13.64	4.54
RoA%	51.1	1.45

Q.3 Operating efficiency of Balmer Lawrie Investments Ltd vs industry peers?

Balmer Lawrie Investments Ltd ROCE (48.7) is above the industry median of (4.4); while the current ROE (47.8) 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%	96.03	15.95
PPOP%	13.64	4.54
RoA%	51.1	1.45
ROCE%	53.7	4.4
ROE%	52.3	2.7

Valuation & price assessment

Q.1 Stock return of Balmer Lawrie Investments Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 9.6% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	9.6%	9.9%	24.6%	-4.9%

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	16.73	13.14	28.96
Price to Book	8.48	6.00	1.11
Price to Sales	16.05	12.64	9.10
EV to EBITDA	15.55	11.11	11.77

Q.4 Valuation ratios of Balmer Lawrie Investments Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 8.48% is higher than its historical median of 6.00%, 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?

Balmer Lawrie Investments Ltd return on invested capital (ROIC) is 52.34% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

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