Check Before You Invest : Galada Finance Ltd

Q: Which industry/sub-sector does Galada Finance Ltd belong to?

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

Q: Is Galada Finance Ltd a good quality company?

Galada Finance Ltd is a quality company, based on a multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Galada Finance Ltd undervalued or overvalued?

Galada Finance Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 30.57, Historic Median: 16.72. Price to Book, Current: 1.88, Historic Median: 0.94. Price to Sales, Current: 4.74, Historic Median: 4.11. EV to EBITDA, Current: 11.53, Historic Median: 11.76

Q: Is Galada Finance Ltd a good buy now?

Galada 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

Q: Total Income growth of Galada Finance Ltd?

Galada Finance Ltd Operating Income growth is 22.99% for FY-2025, which is above its 5-year CAGR of 11.86%, indicating faster growth.

Q: Return on Assets of Galada Finance Ltd?

Galada Finance Ltd Return on Asset is 2.2%, which is above its 5-year historical median of 0.3%, indicating improved earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 15.07, Historic Median: 2.66. PPOP (%), Current: -23.26, Historic Median: 30. RoA (%), Current: 2.2, Historic Median: 0.3

Q: Return on Equity (ROE) of Galada Finance Ltd?

Galada Finance Ltd Return on Equity is 4.4% 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: Pre-provisioning operating profit margin of Galada Finance Ltd?

Galada Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -23.26% for FY-2025, which is below its 5-year median(30%), indicating decreasing margins.

Q: Net Profit Margin of Galada Finance Ltd?

Galada 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 15.07% for FY-2025, which is above its 5-year median( 2.66%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

Galada Finance Ltd return on invested capital (ROIC) is 5.72% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Snapshot

Q.1 Which industry/sub-sector does Galada Finance Ltd belong to?

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

Q.2 Is Galada Finance Ltd a good quality company?

Galada Finance Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Galada Finance Ltd undervalued or overvalued?

Galada Finance Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	30.57	16.72
Price to Book	1.88	0.94
Price to Sales	4.74	4.11
EV to EBITDA	11.53	11.76

Q.4 Is Galada Finance Ltd a good buy now?

Galada 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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Galada Finance Ltd?

Galada Finance Ltd Operating Income growth is 22.99% for FY-2025, which is above its 5-year CAGR of 11.86%, indicating faster growth.

Q.2 Return on Assets of Galada Finance Ltd?

Galada Finance Ltd Return on Asset is 2.2%, which is above its 5-year historical median of 0.3%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	15.07	2.66
PPOP (%)	-23.26	30
RoA (%)	2.2	0.3

Q.3 Return on Equity (ROE) of Galada Finance Ltd?

Galada Finance Ltd Return on Equity is 4.4% 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 Galada Finance Ltd?

Galada Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -23.26% for FY-2025, which is below its 5-year median(30%), indicating decreasing margins.

Q.5 Net Profit Margin of Galada Finance Ltd?

Galada 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 15.07% for FY-2025, which is above its 5-year median( 2.66%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

Galada Finance Ltd return on invested capital (ROIC) is 5.72% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Galada Finance Ltd?

Galada Finance Ltd Total Asset growth is 26.14% for FY-2025, which is above its 5-year CAGR of 11.21%, indicating faster growth.

C: How strong is the bank’s capital position and asset quality?

Q.8 Capital Adequacy ratio of Galada Finance Ltd?

Galada Finance Ltd Capital Adequacy ratio (CAR) is 46.8% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

D: Promoter shareholding and pledge status of Galada Finance Ltd?

Q.1 Promoter shareholding and pledge status of Galada Finance Ltd?

Promoters hold 66.75% of the Galada Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Galada Finance Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Galada Finance Ltd vs Industry Peers?

Galada Finance Ltd AUM CAGR is 11.21%, compared to the 5-year industry median CAGR of 9.71%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Galada Finance Ltd vs industry peers

Galada Finance Ltd profit metrics are below the industry median level of 4.76%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	15.07	12.87
PPOP (%)	-23.26	-
RoA (%)	2.2	1.4

Q.3 Operating efficiency of Galada Finance Ltd vs industry peers?

Galada Finance Ltd ROCE (4.9) is above the industry median of (4.15); while the current ROE (0.5) are below than the 5-year average Industry ROE (2.3). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	15.07	12.87
PPOP (%)	-23.26	-
RoA (%)	2.2	1.4
ROCE (%)	7.7	4.15
ROE (%)	4.4	2.3

Valuation & price assessment

Q.1 Stock return of Galada Finance Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 6.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	6.2%	29%	63.9%	29.3%

Q.2 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	30.57	16.72	29.12
Price to Book	1.88	0.94	1.11
Price to Sales	4.74	4.11	9.10
EV to EBITDA	11.53	11.76	11.77

Q.3 Valuation ratios of Galada Finance Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1.88 is higher than its historical median of 0.94, indicating that the stock is trading above its historical average valuation.

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