Check Before You Invest : Krishna Capital And Securities Ltd

Snapshot

Q.1 Which industry/sub-sector does Krishna Capital And Securities Ltd belong to?

Krishna Capital And Securities Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Krishna Capital And Securities Ltd a good quality company?

Krishna Capital And Securities Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Krishna Capital And Securities Ltd undervalued or overvalued?

Krishna Capital And Securities Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Krishna Capital And Securities Ltd a good buy now?

Krishna Capital And Securities 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 Krishna Capital And Securities Ltd?

Krishna Capital And Securities Ltd Operating Income growth is 46.15% for FY-2025, which is above its 5-year CAGR of 7.34%, indicating faster growth.

Q.2 Return on Assets of Krishna Capital And Securities Ltd?

Krishna Capital And Securities Ltd Return on Asset is 2.1%, which is below its 5-year historical median of 2.9%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	18.21	32.76
PPOP%	-25	-11.11
RoA%	2.1	2.9

Q.3 Return on Equity (ROE) of Krishna Capital And Securities Ltd?

Krishna Capital And Securities Ltd Return on Equity is 2.1% for FY-2025, which is below its 5-year historical median of 2.9%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Krishna Capital And Securities Ltd?

Krishna Capital And Securities Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -25% for FY-2025, which is below its 5-year median(-11.11%), indicating decreasing margins.

Q.5 Net Profit Margin of Krishna Capital And Securities Ltd?

Krishna Capital And Securities 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 18.21% for FY-2025, which is below its 5-year median( 32.76%), indicating decreasing margins.

Q.6 Total Asset growth of Krishna Capital And Securities Ltd?

Krishna Capital And Securities Ltd Total Asset growth is 2.01% for FY-2025, which is below its 5-year CAGR of 2.92%, indicating slower growth.

Q.7 Capital Adequacy ratio of Krishna Capital And Securities Ltd?

Krishna Capital And Securities Ltd Capital Adequacy ratio (CAR) is 1.1% for FY-2025, which is below the regulatory requirement of 15%, indicating adequate capital position.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Krishna Capital And Securities Ltd?

Promoters hold 42.87% of the Krishna Capital And Securities Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Krishna Capital And Securities Ltd vs Industry Peers?

Krishna Capital And Securities Ltd AUM CAGR is 2.92%, 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 Krishna Capital And Securities Ltd vs industry peers

Krishna Capital And Securities 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%	18.21	15.95
PPOP%	-25	4.54
RoA%	2.1	1.45

Q.3 Operating efficiency of Krishna Capital And Securities Ltd vs industry peers?

Krishna Capital And Securities Ltd ROCE (3.5) is below the industry median of (4.4); while the current ROE (2.9) are above than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	18.21	15.95
PPOP%	-25	4.54
RoA%	2.1	1.45
ROCE%	2.4	4.4
ROE%	2.1	2.7

Valuation & price assessment

Q.1 Stock return of Krishna Capital And Securities Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 31.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	31.3%	67.5%	43.8%	101.4%

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	141.5	52.92	28.96
Price to Book	3.5	1.32	1.11
Price to Sales	35.38	15.29	9.10
EV to EBITDA	115.97	41.47	11.77

Q.4 Valuation ratios of Krishna Capital And Securities Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 3.5% is higher than its historical median of 1.32%, 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?

Krishna Capital And Securities Ltd return on invested capital (ROIC) is 2.06% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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