Check Before You Invest : Comfort Fincap Ltd

Snapshot

Q.1 Which industry/sub-sector does Comfort Fincap Ltd belong to?

Comfort Fincap Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Comfort Fincap Ltd a good quality company?

Comfort Fincap Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Comfort Fincap Ltd undervalued or overvalued?

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

Q.4 Is Comfort Fincap Ltd a good buy now?

Comfort Fincap 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 Comfort Fincap Ltd?

Comfort Fincap Ltd Operating Income growth is 13.47% for FY-2025, which is above its 5-year CAGR of 11.57%, indicating faster growth.

Q.2 Return on Assets of Comfort Fincap Ltd?

Comfort Fincap Ltd Return on Asset is 5.3%, which is below its 5-year historical median of 5.5%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	38.3	37.56
PPOP%	-4.89	6.29
RoA%	5.3	5.5

Q.3 Return on Equity (ROE) of Comfort Fincap Ltd?

Comfort Fincap Ltd Return on Equity is 7.4% for FY-2025, which is below its 5-year historical median of 10.2%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Comfort Fincap Ltd?

Comfort Fincap Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -4.89% for FY-2025, which is below its 5-year median(6.29%), indicating decreasing margins.

Q.5 Net Profit Margin of Comfort Fincap Ltd?

Comfort Fincap 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 38.3% for FY-2025, which is above its 5-year median( 37.56%), indicating increasing margins.

Q.6 Total Asset growth of Comfort Fincap Ltd?

Comfort Fincap Ltd Total Asset growth is 33.14% for FY-2025, which is above its 5-year CAGR of 14.04%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Comfort Fincap Ltd?

Promoters hold 55.05% of the Comfort Fincap Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Comfort Fincap Ltd vs Industry Peers?

Comfort Fincap Ltd AUM CAGR is 14.04%, 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 Comfort Fincap Ltd vs industry peers

Comfort Fincap 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%	38.3	15.95
PPOP%	-4.89	4.54
RoA%	5.3	1.45

Q.3 Operating efficiency of Comfort Fincap Ltd vs industry peers?

Comfort Fincap Ltd ROCE (12.5) is above the industry median of (4.4); while the current ROE (10.2) 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%	38.3	15.95
PPOP%	-4.89	4.54
RoA%	5.3	1.45
ROCE%	9.9	4.4
ROE%	7.4	2.7

Valuation & price assessment

Q.1 Stock return of Comfort Fincap Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 12.6% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	12.6%	37.5%	-1.3%	-11.6%

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	10.84	10.76	28.96
Price to Book	0.78	0.90	1.11
Price to Sales	4.89	4.23	9.10
EV to EBITDA	8.37	8.17	11.77

Q.4 Valuation ratios of Comfort Fincap Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.78% is lower than its historical median of 0.90%, 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?

Comfort Fincap Ltd return on invested capital (ROIC) is 7.24% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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