Check Before You Invest : IBL Finance Ltd

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

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

Q: Is IBL Finance Ltd a good quality company?

IBL Finance Ltd is a weak quality company, based on a inconsistent 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 IBL Finance Ltd undervalued or overvalued?

IBL Finance Ltd appears Fair, as its key valuation ratios are in line with 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: 60.26, Historic Median: 62.04. Price to Book, Current: 2.41, Historic Median: 2.42. Price to Sales, Current: 8.58, Historic Median: 10.06. EV to EBITDA, Current: 18.89, Historic Median: 33.42

Q: Is IBL Finance Ltd a good buy now?

IBL Finance Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of IBL Finance Ltd?

IBL Finance Ltd Operating Income growth is -8.25% for FY-2025, which is below its 5-year CAGR of NA%, indicating slower growth.

Q: Return on Assets of IBL Finance Ltd?

IBL Finance Ltd Return on Asset is 2.6%, which is below its 5-year historical median of 5.2%, indicating deteriorated earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 18.18, Historic Median: 15.38. PPOP (%), Current: -, Historic Median: -. RoA (%), Current: 2.6, Historic Median: 5.2

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

IBL Finance Ltd Return on Equity is 4.1% for FY-2025, which is below its 5-year historical median of 5.9%, indicating the business is making worse use of its shareholders capital.

Q: Net Profit Margin of IBL Finance Ltd?

IBL 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 18.18% for FY-2025, which is above its 5-year median( 15.38%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

IBL Finance Ltd return on invested capital (ROIC) is 5.6% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Q: Total Asset growth of IBL Finance Ltd?

IBL Finance Ltd Total Asset growth is 71.21% for FY-2025, which is below its 5-year CAGR of 106.63%, indicating slower growth.

Snapshot

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

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

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

IBL Finance Ltd is a weak quality company, based on a inconsistent 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 IBL Finance Ltd undervalued or overvalued?

IBL Finance Ltd appears Fair, as its key valuation ratios are in line with 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	60.26	62.04
Price to Book	2.41	2.42
Price to Sales	8.58	10.06
EV to EBITDA	18.89	33.42

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

IBL Finance Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 IBL Finance Ltd?

IBL Finance Ltd Operating Income growth is -8.25% for FY-2025, which is below its 5-year CAGR of NA%, indicating slower growth.

Q.2 Return on Assets of IBL Finance Ltd?

IBL Finance Ltd Return on Asset is 2.6%, which is below its 5-year historical median of 5.2%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	18.18	15.38
PPOP (%)	-	-
RoA (%)	2.6	5.2

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

IBL Finance Ltd Return on Equity is 4.1% for FY-2025, which is below its 5-year historical median of 5.9%, indicating the business is making worse use of its shareholders capital.

Q.4 Net Profit Margin of IBL Finance Ltd?

IBL 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 18.18% for FY-2025, which is above its 5-year median( 15.38%), indicating increasing margins.

Q.5 Does its ROIC exceed its WACC?

IBL Finance Ltd return on invested capital (ROIC) is 5.6% 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.6 Total Asset growth of IBL Finance Ltd?

IBL Finance Ltd Total Asset growth is 71.21% for FY-2025, which is below its 5-year CAGR of 106.63%, indicating slower growth.

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

Q.7 Capital Adequacy ratio of IBL Finance Ltd?

IBL Finance Ltd Capital Adequacy ratio (CAR) is 53.5% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Q.8 Asset Quality of IBL Finance Ltd?

IBL Finance Ltd Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 2.54% for FY-2025, which is in line with its 5-year median 2.54%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 1.99% which is in line with its 5-year median( 1.99%), indicating stable asset quality.

Ownership & governance

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

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

Promoters hold 63.20% of the IBL Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

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

IBL Finance Ltd AUM CAGR is 106.63%, compared to the 5-year industry median CAGR of 9.68%, indicating faster growth and gaining its market share.

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

IBL Finance Ltd profit metrics are in line with the industry median level of 4.73%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	18.18	12.79
PPOP (%)	-	-
RoA (%)	2.6	1.4

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

IBL Finance Ltd ROCE (8.5) is above the industry median of (4.1); while the current ROE (5.9) are above than the 5-year average Industry ROE (2.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	18.18	12.79
PPOP (%)	-	-
RoA (%)	2.6	1.4
ROCE (%)	7.5	4.1
ROE (%)	4.1	2.2

Valuation & price assessment

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

Over the last 1 years, the stock has delivered a CAGR of -0.92% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-0.9%

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	60.26	62.04	29.12
Price to Book	2.41	2.42	1.11
Price to Sales	8.58	10.06	9.10
EV to EBITDA	18.89	33.42	11.77

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

The current Price-to-Book (P/B) ratio of 2.41 is lower than its historical median of 2.42, indicating that the stock is trading below its historical average valuation.

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Check Before You Invest : IBL Finance Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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