Check Before You Invest : Nexome Capital Markets Ltd

BSE: 508905 NSE: ISIN: INE641A01013

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Nexome Capital Markets Ltd belong to?

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

Q.2 Is Nexome Capital Markets Ltd a good quality company?

Nexome Capital Markets Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Nexome Capital Markets Ltd undervalued or overvalued?

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

Q.4 Is Nexome Capital Markets Ltd a good buy now?

Nexome Capital Markets 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 Nexome Capital Markets Ltd?

Nexome Capital Markets Ltd Operating Income growth is -83.24% for FY-2025, which is below its 5-year CAGR of -2.64%, indicating slower growth.

Q.2 Return on Assets of Nexome Capital Markets Ltd?

Nexome Capital Markets Ltd Return on Asset is 0.8%, which is in line with its 5-year historical median of 0.8%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	3.01	1.03
PPOP%	-50	100
RoA%	0.8	0.8

Q.3 Return on Equity (ROE) of Nexome Capital Markets Ltd?

Nexome Capital Markets Ltd Return on Equity is 0.8% for FY-2025, which is in line with its 5-year historical median of 0.8%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Nexome Capital Markets Ltd?

Nexome Capital Markets Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -50% for FY-2025, which is below its 5-year median(100%), indicating decreasing margins.

Q.5 Net Profit Margin of Nexome Capital Markets Ltd?

Nexome Capital Markets 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 3.01% for FY-2025, which is above its 5-year median( 1.03%), indicating increasing margins.

Q.6 Total Asset growth of Nexome Capital Markets Ltd?

Nexome Capital Markets Ltd Total Asset growth is 23.31% for FY-2025, which is above its 5-year CAGR of 9.96%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Nexome Capital Markets Ltd?

Promoters hold 58.68% of the Nexome Capital Markets Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Nexome Capital Markets Ltd vs Industry Peers?

Nexome Capital Markets Ltd AUM CAGR is 9.96%, compared to the 5-year industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

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

Nexome Capital Markets 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%	3.01	9.95
PPOP%	-50	-13.31
RoA%	0.8	0.8

Q.3 Operating efficiency of Nexome Capital Markets Ltd vs industry peers?

Nexome Capital Markets Ltd ROCE (1.9) is in line with the industry median of (1.9); while the current ROE (0.8) are below than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	3.01	9.95
PPOP%	-50	-13.31
RoA%	0.8	0.8
ROCE%	1.5	1.9
ROE%	0.8	1.2

Valuation & price assessment

Q.1 Stock return of Nexome Capital Markets Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 15.9% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	15.9%	26.6%	39.3%	32.5%

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	55.96	47.03	33.72
Price to Book	0.58	0.22	0.94
Price to Sales	3.03	0.39	12.44
EV to EBITDA	24	11.00	9.97

Q.4 Valuation ratios of Nexome Capital Markets Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.58% is higher than its historical median of 0.22%, 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?

Nexome Capital Markets Ltd return on invested capital (ROIC) is 0.86% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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