Check Before You Invest : KLG Capital Services Ltd

BSE: 530771 NSE: ISIN: INE929C01018

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does KLG Capital Services Ltd belong to?

KLG Capital Services Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is KLG Capital Services Ltd a good quality company?

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

Q.3 Is KLG Capital Services Ltd undervalued or overvalued?

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

Q.4 Is KLG Capital Services Ltd a good buy now?

KLG Capital Services 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 KLG Capital Services Ltd?

KLG Capital Services Ltd Operating Income growth is 0% for FY-2025, which is above its 5-year CAGR of -3.71%, indicating faster growth.

Q.2 Return on Assets of KLG Capital Services Ltd?

KLG Capital Services Ltd Return on Asset is -0.3%, which is in line with its 5-year historical median of -0.3%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	-4.58	-4.58
PPOP%	500	-66.67
RoA%	-0.3	-0.3

Q.3 Return on Equity (ROE) of KLG Capital Services Ltd?

KLG Capital Services Ltd Return on Equity is -0.4% for FY-2025, which is in line with its 5-year historical median of -0.4%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of KLG Capital Services Ltd?

KLG Capital Services Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 500% for FY-2025, which is above its 5-year median(-66.67%), indicating increasing margins.

Q.5 Net Profit Margin of KLG Capital Services Ltd?

KLG Capital Services 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 -4.58% for FY-2025, which is in line with its 5-year median( -4.58%), indicating stable margins.

Q.6 Total Asset growth of KLG Capital Services Ltd?

KLG Capital Services Ltd Total Asset growth is 0% for FY-2025, which is above its 5-year CAGR of -2.26%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of KLG Capital Services Ltd?

Promoters hold 60.46% of the KLG Capital Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of KLG Capital Services Ltd vs Industry Peers?

KLG Capital Services Ltd AUM CAGR is -2.26%, compared to the 5-year industry median CAGR of 9.45%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of KLG Capital Services Ltd vs industry peers

KLG Capital Services Ltd profit metrics are in line with the industry median level of -0.85%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	-4.58	9.95
PPOP%	500	-13.31
RoA%	-0.3	0.8

Q.3 Operating efficiency of KLG Capital Services Ltd vs industry peers?

KLG Capital Services Ltd ROCE (-0.4) is below the industry median of (1.9); while the current ROE (-0.4) are below than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	-4.58	9.95
PPOP%	500	-13.31
RoA%	-0.3	0.8
ROCE%	-0.4	1.9
ROE%	-0.4	1.2

Valuation & price assessment

Q.1 Stock return of KLG Capital Services Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -2.4% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-2.4%	11.9%	31.6%	-6.8%

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	-	87.76	33.72
Price to Book	-1.75	0.45	0.94
Price to Sales	16.68	4.70	12.44
EV to EBITDA	-0.58	-20.14	9.97

Q.4 Valuation ratios of KLG Capital Services Ltdvs historical and industry averages?

The current Price to book ratio (P/B) -1.75% is lower than its historical median of 0.45%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

KLG Capital Services Ltd return on invested capital (ROIC) is -0.41% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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