Check Before You Invest : Finbud Financial Services Ltd

Snapshot

Q.1 Which industry/sub-sector does Finbud Financial Services Ltd belong to?

Finbud Financial Services Ltd belongs to the BFSI sector, operating specifically within the Finance Term Lending segment.

Q.2 Is Finbud Financial Services Ltd a good quality company?

Finbud Financial Services Ltd is a average quality company, based on a somewhat consistent 4-year financial track record.

Q.3 Is Finbud Financial Services Ltd undervalued or overvalued?

Finbud Financial Services Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Finbud Financial Services Ltd a good buy now?

Finbud Financial Services Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Finbud Financial Services Ltd?

Finbud Financial Services Ltd Operating Income growth is 17.49% for FY-2025, which is below its 3-year CAGR of 36.38%, indicating slower growth.

Q.2 Return on Assets of Finbud Financial Services Ltd?

Finbud Financial Services Ltd Return on Asset is 15.5%, which is in line with its 3-year historical median of 15.5%, indicating stable earnings on assets.

	Current Level	3-year Historic Median
NPM%	3.81	2.98
PPOP%	-	-
RoA%	15.5	15.5

Q.3 Return on Equity (ROE) of Finbud Financial Services Ltd?

Finbud Financial Services Ltd Return on Equity is 36% for FY-2025, which is below its 3-year historical median of 36.6%, indicating the business is making worse use of its shareholders capital.

Q.4 Net Profit Margin of Finbud Financial Services Ltd?

Finbud Financial Services 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 3.81% for FY-2025, which is above its 3-year median( 2.98%), indicating increasing margins.

Q.5 Total Asset growth of Finbud Financial Services Ltd?

Finbud Financial Services Ltd Total Asset growth is -0.2% for FY-2025, which is below its 3-year CAGR of 42.82%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Finbud Financial Services Ltd?

Promoters hold 48.25% of the Finbud Financial Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Finbud Financial Services Ltd vs Industry Peers?

Finbud Financial Services Ltd AUM CAGR is 42.82%, compared to the 3-year industry median CAGR of 9.79%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Finbud Financial Services Ltd vs industry peers

Finbud Financial Services Ltd profit metrics are in line with the industry median level of 2.3%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	3-year Industry Median
NPM%	3.81	7.16
PPOP%	-	-1.95
RoA%	15.5	1.7

Q.3 Operating efficiency of Finbud Financial Services Ltd vs industry peers?

Finbud Financial Services Ltd ROCE (31.9) is above the industry median of (10.4); while the current ROE (36.6) are above than the 5-year average Industry ROE (8.08). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	3-year Industry Median
NPM%	3.81	7.16
PPOP%	-	-1.95
RoA%	15.5	1.7
ROCE%	34.2	10.4
ROE%	36	8.08

Valuation & price assessment

Q.1 Stock return of Finbud Financial Services Ltd over the last decade?

Over the last - years, the stock has delivered a CAGR of N/A% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	29.64	26.82	21.13
Price to Book	6.17	5.55	1.41
Price to Sales	1.13	1.02	4.36
EV to EBITDA	17.76	16.15	10.14

Q.4 Valuation ratios of Finbud Financial Services Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 6.17% is higher than its historical median of 5.55%, 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?

Finbud Financial Services Ltd return on invested capital (ROIC) is 24.25% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

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