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Check Before You Invest : Industrial & Prudential Investment Company Ltd

BSE: 501298 NSE: INDPRUD ISIN: INE620D01011
  |   Sector:  BFSI   |   Industry:  Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Industrial & Prudential Investment Company Ltd belong to?
Industrial & Prudential Investment Company Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.
Q.2 Is Industrial & Prudential Investment Company Ltd a good quality company?
Industrial & Prudential Investment Company 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 Industrial & Prudential Investment Company Ltd undervalued or overvalued?
Industrial & Prudential Investment Company 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 16.51 41.33
Price to Book 1.18 1.71
Price to Sales 177.97 40.44
EV to EBITDA 189.6 40.80
Q.4 Is Industrial & Prudential Investment Company Ltd a good buy now?
Industrial & Prudential Investment Company Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Industrial & Prudential Investment Company Ltd?
Industrial & Prudential Investment Company Ltd Operating Income growth is -9.63% for FY-2026, which is below its 5-year CAGR of -4.22%, indicating slower growth.

Q.2 Return on Assets of Industrial & Prudential Investment Company Ltd?
Industrial & Prudential Investment Company Ltd Return on Asset is 7.4%, which is above its 5-year historical median of 6.9%, indicating improved earnings on assets.
Current Level 5-year
Historic Median
NPM (%) 968.26 816.92
PPOP (%) 6.67 17.95
RoA (%) 7.4 6.9

Q.3 Return on Equity (ROE) of Industrial & Prudential Investment Company Ltd?
Industrial & Prudential Investment Company Ltd Return on Equity is 7.7% for FY-2026, which is above its 5-year historical median of 7.2%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Industrial & Prudential Investment Company Ltd?
Industrial & Prudential Investment Company Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 6.67% for FY-2026, which is below its 5-year median(17.95%), indicating decreasing margins.

Q.5 Net Profit Margin of Industrial & Prudential Investment Company Ltd?
Industrial & Prudential Investment Company 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 968.26% for FY-2026, which is above its 5-year median( 816.92%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?
Industrial & Prudential Investment Company Ltd return on invested capital (ROIC) is 7.71% for FY-2026, 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.7 Total Asset growth of Industrial & Prudential Investment Company Ltd?
Industrial & Prudential Investment Company Ltd Total Asset growth is 4.51% for FY-2026, which is below its 5-year CAGR of 10.82%, indicating slower growth.

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

Q.8 Capital Adequacy ratio of Industrial & Prudential Investment Company Ltd?
Industrial & Prudential Investment Company Ltd Capital Adequacy ratio (CAR) is 55.84% for FY-2026, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

D: Promoter shareholding and pledge status of Industrial & Prudential Investment Company Ltd?

Q.1 Promoter shareholding and pledge status of Industrial & Prudential Investment Company Ltd?
Promoters hold 68.17% of the Industrial & Prudential Investment Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Industrial & Prudential Investment Company Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Industrial & Prudential Investment Company Ltd vs Industry Peers?
Industrial & Prudential Investment Company Ltd AUM CAGR is 10.82%, compared to the 5-year industry median CAGR of 10.15%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Industrial & Prudential Investment Company Ltd vs industry peers
Industrial & Prudential Investment Company Ltd profit metrics are above the industry median level of 6.2%, indicating stronger profitability compared to peers.
Profit Metrics
Current Level 5-year
Industry Median
NPM (%) 968.26 13.82
PPOP (%) 6.67 3.28
RoA (%) 7.4 1.5

Q.3 Operating efficiency of Industrial & Prudential Investment Company Ltd vs industry peers?
Industrial & Prudential Investment Company Ltd ROCE (7.4) is above the industry median of (); while the current ROE (7.2) are above than the 5-year average Industry ROE (2.3). This shows that the business is positioned in the middle quartile of the industry.
Operating Efficiency
Current Level 5-year
Industry Median
NPM (%) 968.26 13.82
PPOP (%) 6.67 3.28
RoA (%) 7.4 1.5
ROCE (%) 7.7 -
ROE (%) 7.7 2.3

Valuation & price assessment

Q.1 Stock return of Industrial & Prudential Investment Company Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 18.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
18.1% 29.1% 18.9% -3.2%
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 16.51 41.33 19.44
Price to Book 1.18 1.71 1.15
Price to Sales 177.97 40.44 8.42
EV to EBITDA 189.6 40.80 11.24
Q.3 Valuation ratios of Industrial & Prudential Investment Company Ltd vs historical and industry averages?
The current Price-to-Book (P/B) ratio of 1.18 is lower than its historical median of 1.71, indicating that the stock is trading below its historical average valuation.

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