Check Before You Invest : Gowra Leasing & Finance Ltd

Q: Which industry/sub-sector does Gowra Leasing & Finance Ltd belong to?

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

Q: Is Gowra Leasing & Finance Ltd a good quality company?

Gowra Leasing & 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 Gowra Leasing & Finance Ltd undervalued or overvalued?

Gowra Leasing & Finance Ltd appears Somewhat 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: 10.68, Historic Median: 8.73. Price to Book, Current: 0.92, Historic Median: 0.60. Price to Sales, Current: 5.48, Historic Median: 5.07. EV to EBITDA, Current: 7.78, Historic Median: 6.96

Q: Is Gowra Leasing & Finance Ltd a good buy now?

Gowra Leasing & 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 Gowra Leasing & Finance Ltd?

Gowra Leasing & Finance Ltd Operating Income growth is 88.67% for FY-2025, which is above its 5-year CAGR of 40.61%, indicating faster growth.

Q: Return on Assets of Gowra Leasing & Finance Ltd?

Gowra Leasing & Finance Ltd Return on Asset is 11.8%, which is above its 5-year historical median of 7.1%, indicating improved earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 64.22, Historic Median: 62.45. PPOP (%), Current: 59.52, Historic Median: 50. RoA (%), Current: 11.8, Historic Median: 7.1

Q: Return on Equity (ROE) of Gowra Leasing & Finance Ltd?

Gowra Leasing & Finance Ltd Return on Equity is 16.9% for FY-2025, which is above its 5-year historical median of 7.1%, indicating the business is making better use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Gowra Leasing & Finance Ltd?

Gowra Leasing & Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 59.52% for FY-2025, which is above its 5-year median(50%), indicating increasing margins.

Q: Net Profit Margin of Gowra Leasing & Finance Ltd?

Gowra Leasing & 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 64.22% for FY-2025, which is in line with its 5-year median( 62.45%), indicating stable margins.

Q: Does its ROIC exceed its WACC?

Gowra Leasing & Finance Ltd return on invested capital (ROIC) is 13.37% for FY-2025, is - than its estimated weighted average cost of capital (WACC) of 14%, indicating -.

Snapshot

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

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

Q.2 Is Gowra Leasing & Finance Ltd a good quality company?

Gowra Leasing & 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 Gowra Leasing & Finance Ltd undervalued or overvalued?

Gowra Leasing & Finance Ltd appears Somewhat 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	10.68	8.73
Price to Book	0.92	0.60
Price to Sales	5.48	5.07
EV to EBITDA	7.78	6.96

Q.4 Is Gowra Leasing & Finance Ltd a good buy now?

Gowra Leasing & 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 Gowra Leasing & Finance Ltd?

Gowra Leasing & Finance Ltd Operating Income growth is 88.67% for FY-2025, which is above its 5-year CAGR of 40.61%, indicating faster growth.

Q.2 Return on Assets of Gowra Leasing & Finance Ltd?

Gowra Leasing & Finance Ltd Return on Asset is 11.8%, which is above its 5-year historical median of 7.1%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	64.22	62.45
PPOP (%)	59.52	50
RoA (%)	11.8	7.1

Q.3 Return on Equity (ROE) of Gowra Leasing & Finance Ltd?

Gowra Leasing & Finance Ltd Return on Equity is 16.9% for FY-2025, which is above its 5-year historical median of 7.1%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Gowra Leasing & Finance Ltd?

Gowra Leasing & Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 59.52% for FY-2025, which is above its 5-year median(50%), indicating increasing margins.

Q.5 Net Profit Margin of Gowra Leasing & Finance Ltd?

Gowra Leasing & 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 64.22% for FY-2025, which is in line with its 5-year median( 62.45%), indicating stable margins.

Q.6 Does its ROIC exceed its WACC?

Gowra Leasing & Finance Ltd return on invested capital (ROIC) is 13.37% for FY-2025, is - than its estimated weighted average cost of capital (WACC) of 14%, indicating -.

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

Q.7 Total Asset growth of Gowra Leasing & Finance Ltd?

Gowra Leasing & Finance Ltd Total Asset growth is 206.23% for FY-2025, which is above its 5-year CAGR of 30.9%, indicating faster growth.

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

Q.8 Capital Adequacy ratio of Gowra Leasing & Finance Ltd?

Gowra Leasing & Finance Ltd Capital Adequacy ratio (CAR) is 1.4% for FY-2025, which is below the regulatory requirement of 15%, indicating adequate capital position.

Ownership & governance

D: Promoter shareholding and pledge status of Gowra Leasing & Finance Ltd?

Q.1 Promoter shareholding and pledge status of Gowra Leasing & Finance Ltd?

Promoters hold 60.18% of the Gowra Leasing & Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Gowra Leasing & Finance Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Gowra Leasing & Finance Ltd vs Industry Peers?

Gowra Leasing & Finance Ltd AUM CAGR is 30.9%, 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 Gowra Leasing & Finance Ltd vs industry peers

Gowra Leasing & Finance Ltd profit metrics are above the industry median level of 4.76%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	64.22	12.87
PPOP (%)	59.52	-
RoA (%)	11.8	1.4

Q.3 Operating efficiency of Gowra Leasing & Finance Ltd vs industry peers?

Gowra Leasing & Finance Ltd ROCE (10.5) is above the industry median of (4.15); while the current ROE (7.1) are above than the 5-year average Industry ROE (2.3). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	64.22	12.87
PPOP (%)	59.52	-
RoA (%)	11.8	1.4
ROCE (%)	18.3	4.15
ROE (%)	16.9	2.3

Valuation & price assessment

Q.1 Stock return of Gowra Leasing & Finance Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 17.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	17.5%	35.5%	58.5%	-13%

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	10.68	8.73	29.12
Price to Book	0.92	0.60	1.11
Price to Sales	5.48	5.07	9.10
EV to EBITDA	7.78	6.96	11.77

Q.3 Valuation ratios of Gowra Leasing & Finance Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 0.92 is higher than its historical median of 0.60, indicating that the stock is trading above its historical average valuation.

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