Check Before You Invest : Indo-City Infotech Ltd

Snapshot

Q.1 Which industry/sub-sector does Indo-City Infotech Ltd belong to?

Indo-City Infotech Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Indo-City Infotech Ltd a good quality company?

Indo-City Infotech Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Indo-City Infotech Ltd undervalued or overvalued?

Indo-City Infotech Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Indo-City Infotech Ltd a good buy now?

Indo-City Infotech 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 Indo-City Infotech Ltd?

Indo-City Infotech Ltd Operating Income growth is -61.56% for FY-2025, which is below its 5-year CAGR of 38.89%, indicating slower growth.

Q.2 Return on Assets of Indo-City Infotech Ltd?

Indo-City Infotech Ltd Return on Asset is -10.7%, which is below its 5-year historical median of -1%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	-15.81	-0.68
PPOP%	-371.74	36.36
RoA%	-10.7	-1

Q.3 Return on Equity (ROE) of Indo-City Infotech Ltd?

Indo-City Infotech Ltd Return on Equity is -10.5% for FY-2025, which is below its 5-year historical median of -1%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Indo-City Infotech Ltd?

Indo-City Infotech Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -371.74% for FY-2025, which is below its 5-year median(36.36%), indicating decreasing margins.

Q.5 Net Profit Margin of Indo-City Infotech Ltd?

Indo-City Infotech 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 -15.81% for FY-2025, which is below its 5-year median( -0.68%), indicating decreasing margins.

Q.6 Total Asset growth of Indo-City Infotech Ltd?

Indo-City Infotech Ltd Total Asset growth is -8.82% for FY-2025, which is below its 5-year CAGR of -0.37%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Indo-City Infotech Ltd?

Promoters hold 62.02% of the Indo-City Infotech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Indo-City Infotech Ltd vs Industry Peers?

Indo-City Infotech Ltd AUM CAGR is -0.37%, compared to the 5-year industry median CAGR of 9.9%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Indo-City Infotech Ltd vs industry peers

Indo-City Infotech Ltd profit metrics are below the industry median level of 7.31%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	-15.81	15.95
PPOP%	-371.74	4.54
RoA%	-10.7	1.45

Q.3 Operating efficiency of Indo-City Infotech Ltd vs industry peers?

Indo-City Infotech Ltd ROCE (-2.4) is below the industry median of (4.4); while the current ROE (-1) are below than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	-15.81	15.95
PPOP%	-371.74	4.54
RoA%	-10.7	1.45
ROCE%	-10.2	4.4
ROE%	-10.5	2.7

Valuation & price assessment

Q.1 Stock return of Indo-City Infotech Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 17.6% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	17.6%	31.4%	19.3%	5.1%

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	20.69	62.03	28.96
Price to Book	0.93	0.80	1.11
Price to Sales	2.19	13.26	9.10
EV to EBITDA	14.08	8.73	11.77

Q.4 Valuation ratios of Indo-City Infotech Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.93% is higher than its historical median of 0.80%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Indo-City Infotech Ltd return on invested capital (ROIC) is -10.29% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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