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Check Before You Invest : Premium Capital Market & Investment Ltd

BSE: 511660 NSE: ISIN: INE555D01019
  |   Sector:  BFSI   |   Industry:  Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Premium Capital Market & Investment Ltd belong to?
Premium Capital Market & Investment Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.
Q.2 Is Premium Capital Market & Investment Ltd a good quality company?
Premium Capital Market & Investment Ltd is a quality company, based on a 10-year financial track record.
Q.3 Is Premium Capital Market & Investment Ltd undervalued or overvalued?
Premium Capital Market & Investment Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Premium Capital Market & Investment Ltd a good buy now?
Premium Capital Market & Investment 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 Premium Capital Market & Investment Ltd?
Premium Capital Market & Investment Ltd Operating Income growth is 1177.94% for FY-2025, which is above its 5-year CAGR of 236.98%, indicating faster growth.
Q.2 Return on Assets of Premium Capital Market & Investment Ltd?
Premium Capital Market & Investment Ltd Return on Asset is -62.2%, which is below its 5-year historical median of -42.2%, indicating deteriorated earnings on assets.
Current Level 5-year
Historic Median
NPM% -5.1 -55.06
PPOP% 121.43 121.43
RoA% -62.2 -42.2
Q.3 Return on Equity (ROE) of Premium Capital Market & Investment Ltd?
Premium Capital Market & Investment Ltd Return on Equity is 0% for FY-2025, which is below its 5-year historical median of 1.1%, indicating the business is making worse use of its shareholders capital.
Q.4 Pre-provisioning operating profit margin of Premium Capital Market & Investment Ltd?
Premium Capital Market & Investment Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 121.43% for FY-2025, which is in line with its 5-year median(121.43%), indicating stable margins.
Q.5 Net Profit Margin of Premium Capital Market & Investment Ltd?
Premium Capital Market & Investment 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 -5.1% for FY-2025, which is above its 5-year median( -55.06%), indicating increasing margins.
Q.6 Total Asset growth of Premium Capital Market & Investment Ltd?
Premium Capital Market & Investment Ltd Total Asset growth is 372% for FY-2025, which is above its 5-year CAGR of 17.36%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Premium Capital Market & Investment Ltd?
Promoters hold 24.25% of the Premium Capital Market & Investment Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Premium Capital Market & Investment Ltd vs Industry Peers?
Premium Capital Market & Investment Ltd AUM CAGR is 17.36%, 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 Premium Capital Market & Investment Ltd vs industry peers
Premium Capital Market & Investment 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% -5.1 9.95
PPOP% 121.43 -13.31
RoA% -62.2 0.8
Q.3 Operating efficiency of Premium Capital Market & Investment Ltd vs industry peers?
Premium Capital Market & Investment Ltd ROCE (-74.8) is below the industry median of (1.9); while the current ROE (1.1) are below than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the bottom quartile of the industry.
Operating Efficiency
Current Level 5-year
Industry Median
NPM% -5.1 9.95
PPOP% 121.43 -13.31
RoA% -62.2 0.8
ROCE% - 1.9
ROE% - 1.2

Valuation & price assessment

Q.1 Stock return of Premium Capital Market & Investment Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 22.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
22.9% 51.1% 98.9% 47%
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 - -14.32 33.72
Price to Book -7.19 1.31 0.94
Price to Sales 0.41 17.64 12.44
EV to EBITDA -19.83 -26.33 9.97
Q.4 Valuation ratios of Premium Capital Market & Investment Ltdvs historical and industry averages?
The current Price to book ratio (P/B) -7.19% is lower than its historical median of 1.31%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?
Premium Capital Market & Investment Ltd return on invested capital (ROIC) is 68.91% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

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