Check Before You Invest : GCM Capital Advisors Ltd

BSE: 538319 NSE: ISIN: INE191P01017

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does GCM Capital Advisors Ltd belong to?

GCM Capital Advisors Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is GCM Capital Advisors Ltd a good quality company?

GCM Capital Advisors Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is GCM Capital Advisors Ltd undervalued or overvalued?

GCM Capital Advisors Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is GCM Capital Advisors Ltd a good buy now?

GCM Capital Advisors 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 GCM Capital Advisors Ltd?

GCM Capital Advisors Ltd Operating Income growth is 55.32% for FY-2025, which is above its 5-year CAGR of -0.36%, indicating faster growth.

Q.2 Return on Assets of GCM Capital Advisors Ltd?

GCM Capital Advisors Ltd Return on Asset is -0.7%, which is below its 5-year historical median of 0.2%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	-8.18	2.07
PPOP%	-37.68	36.36
RoA%	-0.7	0.2

Q.3 Return on Equity (ROE) of GCM Capital Advisors Ltd?

GCM Capital Advisors Ltd Return on Equity is -0.7% for FY-2025, which is below its 5-year historical median of 0.3%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of GCM Capital Advisors Ltd?

GCM Capital Advisors Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -37.68% for FY-2025, which is below its 5-year median(36.36%), indicating decreasing margins.

Q.5 Net Profit Margin of GCM Capital Advisors Ltd?

GCM Capital Advisors 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 -8.18% for FY-2025, which is below its 5-year median( 2.07%), indicating decreasing margins.

Q.6 Total Asset growth of GCM Capital Advisors Ltd?

GCM Capital Advisors Ltd Total Asset growth is -1.13% for FY-2025, which is above its 5-year CAGR of -7.85%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of GCM Capital Advisors Ltd?

Promoters hold 39.03% of the GCM Capital Advisors Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of GCM Capital Advisors Ltd vs Industry Peers?

GCM Capital Advisors Ltd AUM CAGR is -7.85%, compared to the 5-year industry median CAGR of 9.45%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of GCM Capital Advisors Ltd vs industry peers

GCM Capital Advisors Ltd profit metrics are below the industry median level of -0.88%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	-8.18	9.95
PPOP%	-37.68	-13.4
RoA%	-0.7	0.8

Q.3 Operating efficiency of GCM Capital Advisors Ltd vs industry peers?

GCM Capital Advisors Ltd ROCE (1) is below the industry median of (1.9); while the current ROE (0.3) are below than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	-8.18	9.95
PPOP%	-37.68	-13.4
RoA%	-0.7	0.8
ROCE%	1.1	1.9
ROE%	-0.7	1.2

Valuation & price assessment

Q.1 Stock return of GCM Capital Advisors Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -21.2% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-21.2%	21.1%	-4.4%	-35.4%

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	-	32.35	33.72
Price to Book	0.23	0.33	0.94
Price to Sales	2.7	3.38	12.44
EV to EBITDA	10.78	14.46	9.97

Q.4 Valuation ratios of GCM Capital Advisors Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.23% is lower than its historical median of 0.33%, 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?

GCM Capital Advisors Ltd return on invested capital (ROIC) is -0.54% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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