Check Before You Invest : Capital Trust Ltd

BSE: 511505 NSE: CAPTRUST ISIN: INE707C01018

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

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

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

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

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

Q.3 Is Capital Trust Ltd undervalued or overvalued?

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

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

Capital Trust 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 Capital Trust Ltd?

Capital Trust Ltd Operating Income growth is 21.96% for FY-2025, which is above its 5-year CAGR of -8.14%, indicating faster growth.

Q.2 Return on Assets of Capital Trust Ltd?

Capital Trust Ltd Return on Asset is 0.8%, which is above its 5-year historical median of -3%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	1.17	-10.31
PPOP%	-11.17	-42.59
RoA%	0.8	-3

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

Capital Trust Ltd Return on Equity is 1.4% for FY-2025, which is above its 5-year historical median of -8.7%, indicating the business is making better use of its shareholders capital.

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

Capital Trust Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -11.17% for FY-2025, which is above its 5-year median(-42.59%), indicating increasing margins.

Q.5 Net Profit Margin of Capital Trust Ltd?

Capital Trust 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 1.17% for FY-2025, which is above its 5-year median( -10.31%), indicating increasing margins.

Q.6 Total Asset growth of Capital Trust Ltd?

Capital Trust Ltd Total Asset growth is 18.84% for FY-2025, which is above its 5-year CAGR of -18.57%, indicating faster growth.

Q.7 Capital Adequacy ratio of Capital Trust Ltd?

Capital Trust Ltd Capital Adequacy ratio (CAR) is 29.44% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

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

Promoters hold 54.13% of the Capital Trust Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Capital Trust Ltd AUM CAGR is -18.57%, 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 Capital Trust Ltd vs industry peers

Capital Trust Ltd profit metrics are below the industry median level of 7.31%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	1.17	15.95
PPOP%	-11.17	4.54
RoA%	0.8	1.45

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

Capital Trust Ltd ROCE (4.9) is above the industry median of (4.4); while the current ROE (-8.7) are below than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	1.17	15.95
PPOP%	-11.17	4.54
RoA%	0.8	1.45
ROCE%	12.2	4.4
ROE%	1.4	2.7

Valuation & price assessment

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

Over the last 9 years, the stock has delivered a CAGR of -26.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-26.3%	-24.5%	-34.1%	-76.5%

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	-	87.94	28.96
Price to Book	0.54	1.57	1.11
Price to Sales	0.97	1.89	9.10
EV to EBITDA	-5.37	8.86	11.77

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

The current Price to book ratio (P/B) 0.54% is lower than its historical median of 1.57%, 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?

Capital Trust Ltd return on invested capital (ROIC) is 8.55% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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