Check Before You Invest : Cil Securities Ltd

Snapshot

Q.1 Which industry/sub-sector does Cil Securities Ltd belong to?

Cil Securities Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Cil Securities Ltd a good quality company?

Cil Securities Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Cil Securities Ltd undervalued or overvalued?

Cil Securities Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Cil Securities Ltd a good buy now?

Cil Securities 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 Cil Securities Ltd?

Cil Securities Ltd Operating Income growth is -6.65% for FY-2025, which is below its 5-year CAGR of 18.94%, indicating slower growth.

Q.2 Return on Assets of Cil Securities Ltd?

Cil Securities Ltd Return on Asset is 3.6%, which is below its 5-year historical median of 5.1%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	20.97	26.7
PPOP%	-24.21	30.22
RoA%	3.6	5.1

Q.3 Return on Equity (ROE) of Cil Securities Ltd?

Cil Securities Ltd Return on Equity is 6.8% for FY-2025, which is below its 5-year historical median of 10%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Cil Securities Ltd?

Cil Securities Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -24.21% for FY-2025, which is below its 5-year median(30.22%), indicating decreasing margins.

Q.5 Net Profit Margin of Cil Securities Ltd?

Cil Securities 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 20.97% for FY-2025, which is below its 5-year median( 26.7%), indicating decreasing margins.

Q.6 Total Asset growth of Cil Securities Ltd?

Cil Securities Ltd Total Asset growth is -9.19% for FY-2025, which is below its 5-year CAGR of 12.64%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Cil Securities Ltd?

Promoters hold 75.00% of the Cil Securities Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Cil Securities Ltd vs Industry Peers?

Cil Securities Ltd AUM CAGR is 12.64%, 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 Cil Securities Ltd vs industry peers

Cil Securities 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%	20.97	15.95
PPOP%	-24.21	4.54
RoA%	3.6	1.45

Q.3 Operating efficiency of Cil Securities Ltd vs industry peers?

Cil Securities Ltd ROCE (13.3) is above the industry median of (4.4); while the current ROE (10) 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%	20.97	15.95
PPOP%	-24.21	4.54
RoA%	3.6	1.45
ROCE%	10.1	4.4
ROE%	6.8	2.7

Valuation & price assessment

Q.1 Stock return of Cil Securities Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 9.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	9.8%	26.5%	15.3%	-9.2%

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	10.76	8.58	28.96
Price to Book	0.65	0.61	1.11
Price to Sales	2.46	1.96	9.10
EV to EBITDA	4.61	3.59	11.77

Q.4 Valuation ratios of Cil Securities Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.65% is higher than its historical median of 0.61%, 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?

Cil Securities Ltd return on invested capital (ROIC) is 7.49% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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