Check Before You Invest : Capital India Finance Ltd

BSE: 530879 NSE: CIFL ISIN: INE345H01024

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

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

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

Q.2 Is Capital India Finance Ltd a good quality company?

Capital India Finance Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Capital India Finance Ltd undervalued or overvalued?

Capital India Finance Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Capital India Finance Ltd a good buy now?

Capital India Finance Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Capital India Finance Ltd?

Capital India Finance Ltd Operating Income growth is -4.63% for FY-2025, which is below its 5-year CAGR of 11.74%, indicating slower growth.

Q.2 Return on Assets of Capital India Finance Ltd?

Capital India Finance Ltd Return on Asset is 0.9%, which is below its 5-year historical median of 1.2%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	6.43	9.6
PPOP%	-40	-33.33
RoA%	0.9	1.2

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

Capital India Finance Ltd Return on Equity is 1.9% for FY-2025, which is below its 5-year historical median of 2.6%, indicating the business is making worse use of its shareholders capital.

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

Capital India Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -40% for FY-2025, which is below its 5-year median(-33.33%), indicating decreasing margins.

Q.5 Net Profit Margin of Capital India Finance Ltd?

Capital India Finance 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 6.43% for FY-2025, which is below its 5-year median( 9.6%), indicating decreasing margins.

Q.6 Total Asset growth of Capital India Finance Ltd?

Capital India Finance Ltd Total Asset growth is 9.94% for FY-2025, which is below its 5-year CAGR of 14.67%, indicating slower growth.

Q.7 Capital Adequacy ratio of Capital India Finance Ltd?

Capital India Finance Ltd Capital Adequacy ratio (CAR) is 36.1% 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 India Finance Ltd?

Promoters hold 72.59% of the Capital India Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Capital India Finance Ltd AUM CAGR is 14.67%, compared to the 5-year industry median CAGR of 9.9%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Capital India Finance Ltd vs industry peers

Capital India Finance 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%	6.43	15.95
PPOP%	-40	4.54
RoA%	0.9	1.45

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

Capital India Finance Ltd ROCE (6.9) is above the industry median of (4.4); while the current ROE (2.6) 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%	6.43	15.95
PPOP%	-40	4.54
RoA%	0.9	1.45
ROCE%	6.9	4.4
ROE%	1.9	2.7

Valuation & price assessment

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

Over the last 9 years, the stock has delivered a CAGR of 26.9% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	26.9%	6.3%	23.4%	-22.4%

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	29.11	60.12	28.96
Price to Book	1.69	1.66	1.11
Price to Sales	6.25	6.88	9.10
EV to EBITDA	43.62	16.85	11.77

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

The current Price to book ratio (P/B) 1.69% is higher than its historical median of 1.66%, 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?

Capital India Finance Ltd return on invested capital (ROIC) is 5.02% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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