Check Before You Invest : Classic Leasing & Finance Ltd

Snapshot

Q.1 Which industry/sub-sector does Classic Leasing & Finance Ltd belong to?

Classic Leasing & Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Classic Leasing & Finance Ltd a good quality company?

Classic Leasing & Finance Ltd is a quality company, based on a 9-year financial track record.

Q.3 Is Classic Leasing & Finance Ltd undervalued or overvalued?

Classic Leasing & Finance Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Classic Leasing & Finance Ltd a good buy now?

Classic Leasing & Finance 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 Classic Leasing & Finance Ltd?

Classic Leasing & Finance Ltd Operating Income growth is 76.92% for FY-2025, which is above its 5-year CAGR of 44.37%, indicating faster growth.

Q.2 Return on Assets of Classic Leasing & Finance Ltd?

Classic Leasing & Finance Ltd Return on Asset is 10%, which is above its 5-year historical median of 2%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	67.22	46.75
PPOP%	155.56	-66.67
RoA%	10	2

Q.3 Return on Equity (ROE) of Classic Leasing & Finance Ltd?

Classic Leasing & Finance Ltd Return on Equity is 0% for FY-2025, which is below its 5-year historical median of 0.6%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Classic Leasing & Finance Ltd?

Classic Leasing & Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 155.56% for FY-2025, which is above its 5-year median(-66.67%), indicating increasing margins.

Q.5 Net Profit Margin of Classic Leasing & Finance Ltd?

Classic Leasing & 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 67.22% for FY-2025, which is above its 5-year median( 46.75%), indicating increasing margins.

Q.6 Total Asset growth of Classic Leasing & Finance Ltd?

Classic Leasing & Finance Ltd Total Asset growth is 59.5% for FY-2025, which is above its 5-year CAGR of -10.35%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Classic Leasing & Finance Ltd?

Promoters hold 38.41% of the Classic Leasing & Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Classic Leasing & Finance Ltd vs Industry Peers?

Classic Leasing & Finance Ltd AUM CAGR is -10.35%, 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 Classic Leasing & Finance Ltd vs industry peers

Classic Leasing & Finance 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%	67.22	15.95
PPOP%	155.56	4.54
RoA%	10	1.45

Q.3 Operating efficiency of Classic Leasing & Finance Ltd vs industry peers?

Classic Leasing & Finance Ltd ROCE (6.65) is above the industry median of (4.4); while the current ROE (0.6) 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%	67.22	15.95
PPOP%	155.56	4.54
RoA%	10	1.45
ROCE%	10.6	4.4
ROE%	-	2.7

Valuation & price assessment

Q.1 Stock return of Classic Leasing & Finance Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of 25.85% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	25.9%	83.8%	61.8%

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	77.53	36.69	28.96
Price to Book	10.04	-0.71	1.11
Price to Sales	61.91	17.18	9.10
EV to EBITDA	85.97	290.53	11.77

Q.4 Valuation ratios of Classic Leasing & Finance Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 10.04% is higher than its historical median of -0.71%, 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?

Classic Leasing & Finance Ltd return on invested capital (ROIC) is 10.48% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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