Check Before You Invest : Kanungo Financiers Ltd

Q: Which industry/sub-sector does Kanungo Financiers Ltd belong to?

Kanungo Financiers Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q: Is Kanungo Financiers Ltd a good quality company?

Kanungo Financiers Ltd is a quality company, based on a 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 Kanungo Financiers Ltd undervalued or overvalued?

Kanungo Financiers 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: 12.22, Historic Median: 13.99. Price to Book, Current: 0.58, Historic Median: 0.59. Price to Sales, Current: -, Historic Median: -. EV to EBITDA, Current: 7.84, Historic Median: 14.06

Q: Is Kanungo Financiers Ltd a good buy now?

Kanungo Financiers 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

Q: Total Income growth of Kanungo Financiers Ltd?

Kanungo Financiers Ltd Operating Income growth is NA% for FY-2025, which is in line with its 3-year CAGR of NA%, indicating stable growth.

Q: Return on Assets of Kanungo Financiers Ltd?

Kanungo Financiers Ltd Return on Asset is 1%, which is below its 3-year historical median of 1.7%, indicating deteriorated earnings on assets. Efficiency & Key Metrics. NPM (%), Current: -, Historic Median: 12.95. PPOP (%), Current: -17.95, Historic Median: -17.95. RoA (%), Current: 1, Historic Median: 1.7

Q: Return on Equity (ROE) of Kanungo Financiers Ltd?

Kanungo Financiers Ltd Return on Equity is 3.8% for FY-2025, which is below its 3-year historical median of 4.4%, indicating the business is making worse use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Kanungo Financiers Ltd?

Kanungo Financiers Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -17.95% for FY-2025, which is in line with its 3-year median(-17.95%), indicating stable margins.

Q: Net Profit Margin of Kanungo Financiers Ltd?

Kanungo Financiers 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 0% for FY-2025, which is below its 3-year median( 12.95%), indicating decreasing margins.

Q: Does its ROIC exceed its WACC?

Kanungo Financiers Ltd return on invested capital (ROIC) is 4.39% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check Before You Invest : Kanungo Financiers Ltd

BSE: 540515 NSE: ISIN: INE453S01015

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Kanungo Financiers Ltd belong to?

Kanungo Financiers Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Kanungo Financiers Ltd a good quality company?

Kanungo Financiers Ltd is a quality company, based on a 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 Kanungo Financiers Ltd undervalued or overvalued?

Kanungo Financiers 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	3-year Historic Median
Price to Earnings	12.22	13.99
Price to Book	0.58	0.59
Price to Sales	-	-
EV to EBITDA	7.84	14.06

Q.4 Is Kanungo Financiers Ltd a good buy now?

Kanungo Financiers 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

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 Kanungo Financiers Ltd?

Kanungo Financiers Ltd Operating Income growth is NA% for FY-2025, which is in line with its 3-year CAGR of NA%, indicating stable growth.

Q.2 Return on Assets of Kanungo Financiers Ltd?

Kanungo Financiers Ltd Return on Asset is 1%, which is below its 3-year historical median of 1.7%, indicating deteriorated earnings on assets.

	Current Level	3-year Historic Median
NPM (%)	-	12.95
PPOP (%)	-17.95	-17.95
RoA (%)	1	1.7

Q.3 Return on Equity (ROE) of Kanungo Financiers Ltd?

Kanungo Financiers Ltd Return on Equity is 3.8% for FY-2025, which is below its 3-year historical median of 4.4%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Kanungo Financiers Ltd?

Kanungo Financiers Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -17.95% for FY-2025, which is in line with its 3-year median(-17.95%), indicating stable margins.

Q.5 Net Profit Margin of Kanungo Financiers Ltd?

Kanungo Financiers 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 0% for FY-2025, which is below its 3-year median( 12.95%), indicating decreasing margins.

Q.6 Does its ROIC exceed its WACC?

Kanungo Financiers Ltd return on invested capital (ROIC) is 4.39% 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.7 Total Asset growth of Kanungo Financiers Ltd?

Kanungo Financiers Ltd Total Asset growth is 59.5% for FY-2025, which is above its 3-year CAGR of 30.88%, indicating faster growth.

Ownership & governance

D: Promoter shareholding and pledge status of Kanungo Financiers Ltd?

Q.1 Promoter shareholding and pledge status of Kanungo Financiers Ltd?

Promoters hold 4.40% of the Kanungo Financiers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Kanungo Financiers Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Kanungo Financiers Ltd vs Industry Peers?

Kanungo Financiers Ltd AUM CAGR is 30.88%, compared to the 3-year industry median CAGR of 8.59%, indicating faster growth and gaining its market share.

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

Kanungo Financiers Ltd profit metrics are in line with the industry median level of 1.79%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	3-year Industry Median
NPM (%)	-	4.86
PPOP (%)	-17.95	-0.38
RoA (%)	1	0.9

Q.3 Operating efficiency of Kanungo Financiers Ltd vs industry peers?

Kanungo Financiers Ltd ROCE (4.5) is above the industry median of (2); while the current ROE (4.4) are above than the 5-year average Industry ROE (1). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	3-year Industry Median
NPM (%)	-	4.86
PPOP (%)	-17.95	-0.38
RoA (%)	1	0.9
ROCE (%)	6.2	2
ROE (%)	3.8	1

Valuation & price assessment

Q.1 Stock return of Kanungo Financiers Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of -10.15% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-10.2%	-5.9%	-1.2%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	12.22	13.99	33.22
Price to Book	0.58	0.59	1.01
Price to Sales	-	-	15.36
EV to EBITDA	7.84	14.06	9.96

Q.3 Valuation ratios of Kanungo Financiers Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 0.58 is lower than its historical median of 0.59, indicating that the stock is trading below its historical average valuation.

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Check Before You Invest : Kanungo Financiers Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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