Check Before You Invest : Octal Credit Capital Ltd

Q: Which industry/sub-sector does Octal Credit Capital Ltd belong to?

Octal Credit Capital Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q: Is Octal Credit Capital Ltd a good quality company?

Octal Credit Capital Ltd is a quality company, based on a 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 Octal Credit Capital Ltd undervalued or overvalued?

Octal Credit Capital Ltd appears Undervalued, as its key valuation ratios are lower 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: 113.77, Historic Median: 80.17. Price to Book, Current: 0.55, Historic Median: 0.87. Price to Sales, Current: 23.84, Historic Median: 44.77. EV to EBITDA, Current: 68.91, Historic Median: 31.86

Q: Is Octal Credit Capital Ltd a good buy now?

Octal Credit Capital 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

Q: Total Income growth of Octal Credit Capital Ltd?

Octal Credit Capital Ltd Operating Income growth is 19.43% for FY-2025, which is above its 5-year CAGR of 0.3%, indicating faster growth.

Q: Return on Assets of Octal Credit Capital Ltd?

Octal Credit Capital 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. Efficiency & Key Metrics. NPM (%), Current: 13.45, Historic Median: 13.45. PPOP (%), Current: -39.13, Historic Median: -39.13. RoA (%), Current: 0.3, Historic Median: 0.3

Q: Return on Equity (ROE) of Octal Credit Capital Ltd?

Octal Credit Capital Ltd Return on Equity is 0.3% for FY-2025, which is in line with its 5-year historical median of 0.3%, indicating the business is making similar use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Octal Credit Capital Ltd?

Octal Credit Capital Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -39.13% for FY-2025, which is in line with its 5-year median(-39.13%), indicating stable margins.

Q: Net Profit Margin of Octal Credit Capital Ltd?

Octal Credit Capital 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 13.45% for FY-2025, which is in line with its 5-year median( 13.45%), indicating stable margins.

Q: Does its ROIC exceed its WACC?

Octal Credit Capital Ltd return on invested capital (ROIC) is 0.29% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Snapshot

Q.1 Which industry/sub-sector does Octal Credit Capital Ltd belong to?

Octal Credit Capital Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Octal Credit Capital Ltd a good quality company?

Octal Credit Capital Ltd is a quality company, based on a 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 Octal Credit Capital Ltd undervalued or overvalued?

Octal Credit Capital Ltd appears Undervalued, as its key valuation ratios are lower 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	113.77	80.17
Price to Book	0.55	0.87
Price to Sales	23.84	44.77
EV to EBITDA	68.91	31.86

Q.4 Is Octal Credit Capital Ltd a good buy now?

Octal Credit Capital 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

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 Octal Credit Capital Ltd?

Octal Credit Capital Ltd Operating Income growth is 19.43% for FY-2025, which is above its 5-year CAGR of 0.3%, indicating faster growth.

Q.2 Return on Assets of Octal Credit Capital Ltd?

Octal Credit Capital 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 (%)	13.45	13.45
PPOP (%)	-39.13	-39.13
RoA (%)	0.3	0.3

Q.3 Return on Equity (ROE) of Octal Credit Capital Ltd?

Octal Credit Capital Ltd Return on Equity is 0.3% for FY-2025, which is in line with its 5-year historical median of 0.3%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Octal Credit Capital Ltd?

Octal Credit Capital Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -39.13% for FY-2025, which is in line with its 5-year median(-39.13%), indicating stable margins.

Q.5 Net Profit Margin of Octal Credit Capital Ltd?

Octal Credit Capital 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 13.45% for FY-2025, which is in line with its 5-year median( 13.45%), indicating stable margins.

Q.6 Does its ROIC exceed its WACC?

Octal Credit Capital Ltd return on invested capital (ROIC) is 0.29% 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 Octal Credit Capital Ltd?

Octal Credit Capital Ltd Total Asset growth is 26.76% for FY-2025, which is above its 5-year CAGR of 9.14%, indicating faster growth.

Ownership & governance

D: Promoter shareholding and pledge status of Octal Credit Capital Ltd?

Q.1 Promoter shareholding and pledge status of Octal Credit Capital Ltd?

Promoters hold 26.64% of the Octal Credit Capital Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Octal Credit Capital Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Octal Credit Capital Ltd vs Industry Peers?

Octal Credit Capital Ltd AUM CAGR is 9.14%, compared to the 5-year industry median CAGR of 9.71%, indicating slower growth and losing its market share.

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

Octal Credit Capital Ltd profit metrics are in line with the industry median level of 4.76%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	13.45	12.87
PPOP (%)	-39.13	-
RoA (%)	0.3	1.4

Q.3 Operating efficiency of Octal Credit Capital Ltd vs industry peers?

Octal Credit Capital Ltd ROCE (0.7) is below the industry median of (4.15); while the current ROE (0.3) are below than the 5-year average Industry ROE (2.3). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	13.45	12.87
PPOP (%)	-39.13	-
RoA (%)	0.3	1.4
ROCE (%)	0.7	4.15
ROE (%)	0.3	2.3

Valuation & price assessment

Q.1 Stock return of Octal Credit Capital Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -1.6% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-1.6%	33.7%	3.9%	-2.2%

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	113.77	80.17	29.12
Price to Book	0.55	0.87	1.11
Price to Sales	23.84	44.77	9.10
EV to EBITDA	68.91	31.86	11.77

Q.3 Valuation ratios of Octal Credit Capital Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 0.55 is lower than its historical median of 0.87, indicating that the stock is trading below its historical average valuation.

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