Check Before You Invest : Ontic Finserve Ltd

Q: Which industry/sub-sector does Ontic Finserve Ltd belong to?

Ontic Finserve Ltd belongs to the BFSI sector, operating specifically within the Finance - Others segment.

Q: Is Ontic Finserve Ltd a good quality company?

Ontic Finserve Ltd is a quality company, based on a multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Ontic Finserve Ltd undervalued or overvalued?

Ontic Finserve 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: 20.72, Historic Median: 5.48. Price to Book, Current: 3.08, Historic Median: 2.69. Price to Sales, Current: 11.69, Historic Median: 0.46. EV to EBITDA, Current: 15.45, Historic Median: 3.99

Q: Is Ontic Finserve Ltd a good buy now?

Ontic Finserve 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: Revenue growth of Ontic Finserve Ltd?

Ontic Finserve Ltd revenue growth is 0% for FY-2025, which is above its 5-year CAGR of -20.44%, indicating faster growth.

Q: Gross Profit margin of Ontic Finserve Ltd?

Ontic Finserve Ltd Gross profit margin which is the profit after deduction of direct costs, is 94.4% for FY-2025, which is above its 5-year median of 2.5%, indicating increasing margins.

Q: Operating Profit Margin of Ontic Finserve Ltd?

Ontic Finserve Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 88.06% for FY-2025, which is above its 5-year median of -0.72% indicating increasing margins.

Q: Net Profit Margin of Ontic Finserve Ltd?

Ontic Finserve Ltd Net Profit Margin is 69.07% for FY-2025, is above its 5-year median of 1.69%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 94.4, Historic Median: 2.5. Operating Profit Margin (%), Current: 88.06, Historic Median: -0.72. Net Profit Margin (%), Current: 69.07, Historic Median: 1.69

Q: Return on Asset of Ontic Finserve Ltd?

Ontic Finserve Ltd Return on Asset is 45.2%, which is above its 5-year historical median of 1%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Ontic Finserve Ltd?

Ontic Finserve Ltd Return on capital employed is 68.2% for FY-2025, which is above its 5-year historical median of 1.3%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Ontic Finserve Ltd

BSE: 540386 NSE: ISIN: INE989S01042

| Sector: BFSI | Industry: Finance - Others

Snapshot

Q.1 Which industry/sub-sector does Ontic Finserve Ltd belong to?

Ontic Finserve Ltd belongs to the BFSI sector, operating specifically within the Finance - Others segment.

Q.2 Is Ontic Finserve Ltd a good quality company?

Ontic Finserve Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Ontic Finserve Ltd undervalued or overvalued?

Ontic Finserve 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	20.72	5.48
Price to Book	3.08	2.69
Price to Sales	11.69	0.46
EV to EBITDA	15.45	3.99

Q.4 Is Ontic Finserve Ltd a good buy now?

Ontic Finserve 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 Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Ontic Finserve Ltd?

Ontic Finserve Ltd revenue growth is 0% for FY-2025, which is above its 5-year CAGR of -20.44%, indicating faster growth.

Q.2 Gross Profit margin of Ontic Finserve Ltd?

Ontic Finserve Ltd Gross profit margin which is the profit after deduction of direct costs, is 94.4% for FY-2025, which is above its 5-year median of 2.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Ontic Finserve Ltd?

Ontic Finserve Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 88.06% for FY-2025, which is above its 5-year median of -0.72% indicating increasing margins.

Q.4 Net Profit Margin of Ontic Finserve Ltd?

Ontic Finserve Ltd Net Profit Margin is 69.07% for FY-2025, is above its 5-year median of 1.69%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	94.4	2.5
Operating Profit Margin (%)	88.06	-0.72
Net Profit Margin (%)	69.07	1.69

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ontic Finserve Ltd?

Ontic Finserve Ltd Return on Asset is 45.2%, which is above its 5-year historical median of 1%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ontic Finserve Ltd?

Ontic Finserve Ltd Return on capital employed is 68.2% for FY-2025, which is above its 5-year historical median of 1.3%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Ontic Finserve Ltd?

Ontic Finserve Ltd Return on equity is 53.5% for FY-2025, which is above its 5-year historical median of 1%, indicating the business is making better use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.8 Debt to Equity ratio of Ontic Finserve Ltd?

Ontic Finserve Ltd Debt-to-Equity ratio is 0.11, which is above the industry average of 0.00, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Ontic Finserve Ltd?

Ontic Finserve Ltd Debt to cash flow from operations is -0.96, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ontic Finserve Ltd?

Q.1 Promoter shareholding and pledge status of Ontic Finserve Ltd?

Promoters hold 0.00% of the Ontic Finserve Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ontic Finserve Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ontic Finserve Ltd vs industry peers?

Ontic Finserve Ltd revenue CAGR is -20.44%, compared to the industry median CAGR of 23.54%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-	23.5
Gross Profit Growth (%)	0	41.8
Operating Profit Growth (%)	0	43.1
Net Profit Growth (%)	0	40.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.65	0.34
ROE (%)	53.5	6
ROCE (%)	68.2	9.75
Cash Conversion Cycle (days)	48.04	8

Valuation & price assessment

Q.1 Stock return of Ontic Finserve Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 26.89% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	26.9%	28.4%	92.3%

Q.2 Valuation ratios of Ontic Finserve Ltd vs historical?

The current P/E ratio of 20.72 is higher than its historical median of 5.48, indicating that the stock is trading above its historical average valuation.

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	20.72	5.48	40.56
Price to Book	3.08	2.69	4.06
Price to Sales	11.69	0.46	9.32
EV to EBITDA	15.45	3.99	25.78

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Check Before You Invest : Ontic Finserve Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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