Check Before You Invest : HB Stockholdings Ltd

BSE: 532216 NSE: HBSL ISIN: INE550B01022

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does HB Stockholdings Ltd belong to?

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

Q.2 Is HB Stockholdings Ltd a good quality company?

HB Stockholdings Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is HB Stockholdings Ltd undervalued or overvalued?

HB Stockholdings Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is HB Stockholdings Ltd a good buy now?

HB Stockholdings 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 HB Stockholdings Ltd?

HB Stockholdings Ltd Operating Income growth is -69.97% for FY-2025, which is below its 5-year CAGR of 46.71%, indicating slower growth.

Q.2 Return on Assets of HB Stockholdings Ltd?

HB Stockholdings Ltd Return on Asset is -11%, which is below its 5-year historical median of 23.3%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	-89.99	84.66
PPOP%	-77.86	35.08
RoA%	-11	23.3

Q.3 Return on Equity (ROE) of HB Stockholdings Ltd?

HB Stockholdings Ltd Return on Equity is -12.3% for FY-2025, which is below its 5-year historical median of 24.8%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of HB Stockholdings Ltd?

HB Stockholdings Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -77.86% for FY-2025, which is below its 5-year median(35.08%), indicating decreasing margins.

Q.5 Net Profit Margin of HB Stockholdings Ltd?

HB Stockholdings 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 -89.99% for FY-2025, which is below its 5-year median( 84.66%), indicating decreasing margins.

Q.6 Total Asset growth of HB Stockholdings Ltd?

HB Stockholdings Ltd Total Asset growth is -2.77% for FY-2025, which is below its 5-year CAGR of 26.57%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of HB Stockholdings Ltd?

Promoters hold 53.22% of the HB Stockholdings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of HB Stockholdings Ltd vs Industry Peers?

HB Stockholdings Ltd AUM CAGR is 26.57%, compared to the 5-year industry median CAGR of 9.9%, indicating faster growth and gaining its market share.

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

HB Stockholdings Ltd profit metrics are in line with the industry median level of 7.31%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	-89.99	15.95
PPOP%	-77.86	4.54
RoA%	-11	1.45

Q.3 Operating efficiency of HB Stockholdings Ltd vs industry peers?

HB Stockholdings Ltd ROCE (25.4) is above the industry median of (4.4); while the current ROE (24.8) are above than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	-89.99	15.95
PPOP%	-77.86	4.54
RoA%	-11	1.45
ROCE%	-9.1	4.4
ROE%	-12.3	2.7

Valuation & price assessment

Q.1 Stock return of HB Stockholdings Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 22.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	22.7%	30.8%	6.8%	-28.2%

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	-	2.67	28.96
Price to Book	0.48	0.56	1.11
Price to Sales	3.85	3.31	9.10
EV to EBITDA	-7.84	1.95	11.77

Q.4 Valuation ratios of HB Stockholdings Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.48% is lower than its historical median of 0.56%, 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?

HB Stockholdings Ltd return on invested capital (ROIC) is -11.02% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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