Check Before You Invest : KK Fincorp Ltd

Snapshot

Q.1 Which industry/sub-sector does KK Fincorp Ltd belong to?

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

Q.2 Is KK Fincorp Ltd a good quality company?

KK Fincorp Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is KK Fincorp Ltd undervalued or overvalued?

KK Fincorp Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is KK Fincorp Ltd a good buy now?

KK Fincorp 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 KK Fincorp Ltd?

KK Fincorp Ltd Operating Income growth is 676.47% for FY-2025, which is above its 5-year CAGR of 39.48%, indicating faster growth.

Q.2 Return on Assets of KK Fincorp Ltd?

KK Fincorp Ltd Return on Asset is 6.9%, which is in line with its 5-year historical median of 6.9%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	60.15	60.15
PPOP%	-3133.33	-185.71
RoA%	6.9	6.9

Q.3 Return on Equity (ROE) of KK Fincorp Ltd?

KK Fincorp Ltd Return on Equity is 7.1% for FY-2025, which is in line with its 5-year historical median of 7.1%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of KK Fincorp Ltd?

KK Fincorp Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -3133.33% for FY-2025, which is below its 5-year median(-185.71%), indicating decreasing margins.

Q.5 Net Profit Margin of KK Fincorp Ltd?

KK Fincorp 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 60.15% for FY-2025, which is in line with its 5-year median( 60.15%), indicating stable margins.

Q.6 Total Asset growth of KK Fincorp Ltd?

KK Fincorp Ltd Total Asset growth is 4.29% for FY-2025, which is below its 5-year CAGR of 26.01%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of KK Fincorp Ltd?

Promoters hold 90.02% of the KK Fincorp Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of KK Fincorp Ltd vs Industry Peers?

KK Fincorp Ltd AUM CAGR is 26.01%, compared to the 5-year industry median CAGR of 9.9%, indicating faster growth and gaining its market share.

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

KK Fincorp Ltd profit metrics are in line with the industry median level of 7.31%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	60.15	15.95
PPOP%	-3133.33	4.54
RoA%	6.9	1.45

Q.3 Operating efficiency of KK Fincorp Ltd vs industry peers?

KK Fincorp Ltd ROCE (7.8) is above the industry median of (4.4); while the current ROE (7.1) are above than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	60.15	15.95
PPOP%	-3133.33	4.54
RoA%	6.9	1.45
ROCE%	7.8	4.4
ROE%	7.1	2.7

Valuation & price assessment

Q.1 Stock return of KK Fincorp Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 28.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	28.5%	57.2%	45.3%	-

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	-	8.40	28.96
Price to Book	3.02	1.51	1.11
Price to Sales	194.41	109.47	9.10
EV to EBITDA	-132.13	3.61	11.77

Q.4 Valuation ratios of KK Fincorp Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 3.02% is higher than its historical median of 1.51%, 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?

KK Fincorp Ltd return on invested capital (ROIC) is 7.12% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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