Check Before You Invest : Franklin Leasing And Finance Ltd

Snapshot

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

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

Q.2 Is Franklin Leasing And Finance Ltd a good quality company?

Franklin Leasing And Finance Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Franklin Leasing And Finance Ltd undervalued or overvalued?

Franklin Leasing And Finance Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Franklin Leasing And Finance Ltd a good buy now?

Franklin Leasing And 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 Franklin Leasing And Finance Ltd?

Franklin Leasing And Finance Ltd Operating Income growth is 20.82% for FY-2025, which is below its 5-year CAGR of 32.22%, indicating slower growth.

Q.2 Return on Assets of Franklin Leasing And Finance Ltd?

Franklin Leasing And Finance Ltd Return on Asset is 0.5%, which is above its 5-year historical median of 0.2%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	1.53	1.58
PPOP%	-15.15	-15.15
RoA%	0.5	0.2

Q.3 Return on Equity (ROE) of Franklin Leasing And Finance Ltd?

Franklin Leasing And Finance Ltd Return on Equity is 0.6% for FY-2025, which is above its 5-year historical median of 0.5%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Franklin Leasing And Finance Ltd?

Franklin Leasing And Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -15.15% for FY-2025, which is in line with its 5-year median(-15.15%), indicating stable margins.

Q.5 Net Profit Margin of Franklin Leasing And Finance Ltd?

Franklin Leasing And 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 1.53% for FY-2025, which is below its 5-year median( 1.58%), indicating decreasing margins.

Q.6 Total Asset growth of Franklin Leasing And Finance Ltd?

Franklin Leasing And Finance Ltd Total Asset growth is 2.96% for FY-2025, which is above its 5-year CAGR of -0.09%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Franklin Leasing And Finance Ltd?

Promoters hold 26.98% of the Franklin Leasing And Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Franklin Leasing And Finance Ltd vs Industry Peers?

Franklin Leasing And Finance Ltd AUM CAGR is -0.09%, 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 Franklin Leasing And Finance Ltd vs industry peers

Franklin Leasing And Finance Ltd profit metrics are below the industry median level of 7.31%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	1.53	15.95
PPOP%	-15.15	4.54
RoA%	0.5	1.45

Q.3 Operating efficiency of Franklin Leasing And Finance Ltd vs industry peers?

Franklin Leasing And Finance Ltd ROCE (1) is below the industry median of (4.4); while the current ROE (0.5) 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%	1.53	15.95
PPOP%	-15.15	4.54
RoA%	0.5	1.45
ROCE%	0.9	4.4
ROE%	0.6	2.7

Valuation & price assessment

Q.1 Stock return of Franklin Leasing And Finance Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -5.1% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-5.1%	-1.4%	-15.7%	-32.2%

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	67.73	99.90	28.96
Price to Book	0.37	0.46	1.11
Price to Sales	1.04	1.67	9.10
EV to EBITDA	38.65	38.65	11.77

Q.4 Valuation ratios of Franklin Leasing And Finance Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.37% is lower than its historical median of 0.46%, 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?

Franklin Leasing And Finance Ltd return on invested capital (ROIC) is 0.69% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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