Check Before You Invest : Mangal Credit and Fincorp Ltd

Q: Which industry/sub-sector does Mangal Credit and Fincorp Ltd belong to?

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

Q: Is Mangal Credit and Fincorp Ltd a good quality company?

Mangal Credit and Fincorp 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: Is Mangal Credit and Fincorp Ltd undervalued or overvalued?

Mangal Credit and Fincorp Ltd appears Somewhat overvalued, as its key valuation ratios are higher than 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: 28.41, Historic Median: 26.98. Price to Book, Current: 2.18, Historic Median: 2.05. Price to Sales, Current: 5.71, Historic Median: 7.90. EV to EBITDA, Current: 11.01, Historic Median: 14.17

Q: Is Mangal Credit and Fincorp Ltd a good buy now?

Mangal Credit and Fincorp 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

Q: Total Income growth of Mangal Credit and Fincorp Ltd?

Mangal Credit and Fincorp Ltd Operating Income growth is 49.35% for FY-2025, which is above its 5-year CAGR of 41.1%, indicating faster growth.

Q: Return on Assets of Mangal Credit and Fincorp Ltd?

Mangal Credit and Fincorp Ltd Return on Asset is 4.2%, which is below its 5-year historical median of 4.7%, indicating deteriorated earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 26.36, Historic Median: 37.22. PPOP (%), Current: 18.75, Historic Median: 18.75. RoA (%), Current: 4.2, Historic Median: 4.7

Q: Return on Equity (ROE) of Mangal Credit and Fincorp Ltd?

Mangal Credit and Fincorp Ltd Return on Equity is 10.1% for FY-2025, which is above its 5-year historical median of 7.3%, indicating the business is making better use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Mangal Credit and Fincorp Ltd?

Mangal Credit and Fincorp Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 18.75% for FY-2025, which is in line with its 5-year median(18.75%), indicating stable margins.

Q: Net Profit Margin of Mangal Credit and Fincorp Ltd?

Mangal Credit and 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 26.36% for FY-2025, which is below its 5-year median( 37.22%), indicating decreasing margins.

Q: Does its ROIC exceed its WACC?

Mangal Credit and Fincorp Ltd return on invested capital (ROIC) is 8.6% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check Before You Invest : Mangal Credit and Fincorp Ltd

BSE: 505850 NSE: MANCREDIT ISIN: INE545L01039

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Mangal Credit and Fincorp Ltd belong to?

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

Q.2 Is Mangal Credit and Fincorp Ltd a good quality company?

Mangal Credit and Fincorp 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 Mangal Credit and Fincorp Ltd undervalued or overvalued?

Mangal Credit and Fincorp Ltd appears Somewhat overvalued, as its key valuation ratios are higher than 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	28.41	26.98
Price to Book	2.18	2.05
Price to Sales	5.71	7.90
EV to EBITDA	11.01	14.17

Q.4 Is Mangal Credit and Fincorp Ltd a good buy now?

Mangal Credit and Fincorp 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 Mangal Credit and Fincorp Ltd?

Mangal Credit and Fincorp Ltd Operating Income growth is 49.35% for FY-2025, which is above its 5-year CAGR of 41.1%, indicating faster growth.

Q.2 Return on Assets of Mangal Credit and Fincorp Ltd?

Mangal Credit and Fincorp Ltd Return on Asset is 4.2%, which is below its 5-year historical median of 4.7%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	26.36	37.22
PPOP (%)	18.75	18.75
RoA (%)	4.2	4.7

Q.3 Return on Equity (ROE) of Mangal Credit and Fincorp Ltd?

Mangal Credit and Fincorp Ltd Return on Equity is 10.1% for FY-2025, which is above its 5-year historical median of 7.3%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Mangal Credit and Fincorp Ltd?

Mangal Credit and Fincorp Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 18.75% for FY-2025, which is in line with its 5-year median(18.75%), indicating stable margins.

Q.5 Net Profit Margin of Mangal Credit and Fincorp Ltd?

Mangal Credit and 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 26.36% for FY-2025, which is below its 5-year median( 37.22%), indicating decreasing margins.

Q.6 Does its ROIC exceed its WACC?

Mangal Credit and Fincorp Ltd return on invested capital (ROIC) is 8.6% 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 Mangal Credit and Fincorp Ltd?

Mangal Credit and Fincorp Ltd Total Asset growth is 27.84% for FY-2025, which is in line with its 5-year CAGR of 27.4%, indicating stable growth.

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

Q.8 Capital Adequacy ratio of Mangal Credit and Fincorp Ltd?

Mangal Credit and Fincorp Ltd Capital Adequacy ratio (CAR) is 41.2% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

D: Promoter shareholding and pledge status of Mangal Credit and Fincorp Ltd?

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

Promoters hold 55.25% of the Mangal Credit and Fincorp Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Mangal Credit and Fincorp Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Mangal Credit and Fincorp Ltd vs Industry Peers?

Mangal Credit and Fincorp Ltd AUM CAGR is 27.4%, compared to the 5-year industry median CAGR of 9.68%, indicating faster growth and gaining its market share.

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

Mangal Credit and Fincorp Ltd profit metrics are above the industry median level of 4.73%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	26.36	12.79
PPOP (%)	18.75	-
RoA (%)	4.2	1.4

Q.3 Operating efficiency of Mangal Credit and Fincorp Ltd vs industry peers?

Mangal Credit and Fincorp Ltd ROCE (9.3) is above the industry median of (4.1); while the current ROE (7.3) are above than the 5-year average Industry ROE (2.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	26.36	12.79
PPOP (%)	18.75	-
RoA (%)	4.2	1.4
ROCE (%)	12.1	4.1
ROE (%)	10.1	2.2

Valuation & price assessment

Q.1 Stock return of Mangal Credit and Fincorp Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 10.1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	10.1%	21.3%	14.1%	-0.1%

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	28.41	26.98	29.12
Price to Book	2.18	2.05	1.11
Price to Sales	5.71	7.90	9.10
EV to EBITDA	11.01	14.17	11.77

Q.3 Valuation ratios of Mangal Credit and Fincorp Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 2.18 is higher than its historical median of 2.05, indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : Mangal Credit and Fincorp Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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