Check Before You Invest : Indo Credit Capital Ltd

Snapshot

Q.1 Which industry/sub-sector does Indo Credit Capital Ltd belong to?

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

Q.2 Is Indo Credit Capital Ltd a good quality company?

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

Q.3 Is Indo Credit Capital Ltd undervalued or overvalued?

Indo Credit Capital Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Indo Credit Capital Ltd a good buy now?

Indo Credit Capital 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 Credit Capital Ltd?

Indo Credit Capital Ltd Operating Income growth is 116.67% for FY-2025, which is above its 5-year CAGR of 26.58%, indicating faster growth.

Q.2 Return on Assets of Indo Credit Capital Ltd?

Indo Credit Capital Ltd Return on Asset is -0.5%, which is above its 5-year historical median of -1.1%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	-39.32	-213.29
PPOP%	-	-28.57
RoA%	-0.5	-1.1

Q.3 Return on Equity (ROE) of Indo Credit Capital Ltd?

Indo Credit Capital Ltd Return on Equity is -0.9% for FY-2025, which is above its 5-year historical median of -1.2%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Indo Credit Capital Ltd?

Indo Credit Capital Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -% for FY-2025, which is above its 5-year median(-28.57%), indicating increasing margins.

Q.5 Net Profit Margin of Indo Credit Capital Ltd?

Indo Credit Capital 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 -39.32% for FY-2025, which is above its 5-year median( -213.29%), indicating increasing margins.

Q.6 Total Asset growth of Indo Credit Capital Ltd?

Indo Credit Capital Ltd Total Asset growth is -0.51% for FY-2025, which is below its 5-year CAGR of 9.25%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Indo Credit Capital Ltd?

Promoters hold 14.51% of the Indo Credit Capital Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Indo Credit Capital Ltd vs Industry Peers?

Indo Credit Capital Ltd AUM CAGR is 9.25%, 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 Credit Capital Ltd vs industry peers

Indo Credit Capital 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%	-39.32	15.95
PPOP%	-	4.54
RoA%	-0.5	1.45

Q.3 Operating efficiency of Indo Credit Capital Ltd vs industry peers?

Indo Credit Capital Ltd ROCE (-1.2) is below the industry median of (4.4); while the current ROE (-1.2) 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%	-39.32	15.95
PPOP%	-	4.54
RoA%	-0.5	1.45
ROCE%	-0.9	4.4
ROE%	-0.9	2.7

Valuation & price assessment

Q.1 Stock return of Indo Credit Capital Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 33.6% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	33.6%	102.1%	87.5%	361.5%

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	141.17	589.31	28.96
Price to Book	1.58	0.24	1.11
Price to Sales	74	29.27	9.10
EV to EBITDA	139.64	-7.13	11.77

Q.4 Valuation ratios of Indo Credit Capital Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.58% is higher than its historical median of 0.24%, 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 Credit Capital Ltd return on invested capital (ROIC) is -0.87% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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