Check Before You Invest : E & E Enterprises Ltd

Snapshot

Q.1 Which industry/sub-sector does E & E Enterprises Ltd belong to?

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

Q.2 Is E & E Enterprises Ltd a good quality company?

E & E Enterprises Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is E & E Enterprises Ltd undervalued or overvalued?

E & E Enterprises Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is E & E Enterprises Ltd a good buy now?

E & E Enterprises 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 E & E Enterprises Ltd?

E & E Enterprises Ltd Operating Income growth is 1.06% for FY-2025, which is below its 5-year CAGR of 4.29%, indicating slower growth.

Q.2 Return on Assets of E & E Enterprises Ltd?

E & E Enterprises Ltd Return on Asset is 0%, which is below its 5-year historical median of 0.1%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	12.48	58.3
PPOP%	11.54	18.18
RoA%	-	0.1

Q.3 Return on Equity (ROE) of E & E Enterprises Ltd?

E & E Enterprises Ltd Return on Equity is 0% for FY-2025, which is below its 5-year historical median of 0.1%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of E & E Enterprises Ltd?

E & E Enterprises Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 11.54% for FY-2025, which is below its 5-year median(18.18%), indicating decreasing margins.

Q.5 Net Profit Margin of E & E Enterprises Ltd?

E & E Enterprises 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 12.48% for FY-2025, which is below its 5-year median( 58.3%), indicating decreasing margins.

Q.6 Total Asset growth of E & E Enterprises Ltd?

E & E Enterprises Ltd Total Asset growth is 0.03% for FY-2025, which is below its 5-year CAGR of 0.07%, indicating slower growth.

Q.7 Capital Adequacy ratio of E & E Enterprises Ltd?

E & E Enterprises Ltd Capital Adequacy ratio (CAR) is 127.2% 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 E & E Enterprises Ltd?

Promoters hold 74.39% of the E & E Enterprises Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of E & E Enterprises Ltd vs Industry Peers?

E & E Enterprises Ltd AUM CAGR is 0.07%, 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 E & E Enterprises Ltd vs industry peers

E & E Enterprises 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%	12.48	15.95
PPOP%	11.54	4.54
RoA%	-	1.45

Q.3 Operating efficiency of E & E Enterprises Ltd vs industry peers?

E & E Enterprises Ltd ROCE (0.1) is below the industry median of (4.4); while the current ROE (0.1) are below than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	12.48	15.95
PPOP%	11.54	4.54
RoA%	-	1.45
ROCE%	-	4.4
ROE%	-	2.7

Valuation & price assessment

Q.1 Stock return of E & E Enterprises Ltd over the last decade?

Over the last 3 years, the stock has delivered a CAGR of 55.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	55.8%	63.8%

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	-	0.23	28.96
Price to Book	-	0.01	1.11
Price to Sales	0.97	0.29	9.10
EV to EBITDA	-81.62	0.31	11.77

Q.4 Valuation ratios of E & E Enterprises Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0% is lower than its historical median of 0.01%, 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?

E & E Enterprises Ltd return on invested capital (ROIC) is 0.02% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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