Check Before You Invest : Rajputana Investment & Finance Ltd

BSE: 539090 NSE: ISIN: INE751R01014

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Rajputana Investment & Finance Ltd belong to?

Rajputana Investment & Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Rajputana Investment & Finance Ltd a good quality company?

Rajputana Investment & Finance Ltd is a quality company, based on a 6-year financial track record.

Q.3 Is Rajputana Investment & Finance Ltd undervalued or overvalued?

Rajputana Investment & Finance Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Rajputana Investment & Finance Ltd a good buy now?

Rajputana Investment & Finance 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 Rajputana Investment & Finance Ltd?

Rajputana Investment & Finance Ltd Operating Income growth is 117.13% for FY-2025, which is above its 5-year CAGR of NA%, indicating faster growth.

Q.2 Return on Assets of Rajputana Investment & Finance Ltd?

Rajputana Investment & Finance Ltd Return on Asset is 8.9%, which is above its 5-year historical median of 2%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	5.95	5.95
PPOP%	-26.76	-26.76
RoA%	8.9	2

Q.3 Return on Equity (ROE) of Rajputana Investment & Finance Ltd?

Rajputana Investment & Finance Ltd Return on Equity is 9.5% for FY-2025, which is above its 5-year historical median of 2.1%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Rajputana Investment & Finance Ltd?

Rajputana Investment & Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -26.76% for FY-2025, which is in line with its 5-year median(-26.76%), indicating stable margins.

Q.5 Net Profit Margin of Rajputana Investment & Finance Ltd?

Rajputana Investment & Finance 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 5.95% for FY-2025, which is in line with its 5-year median( 5.95%), indicating stable margins.

Q.6 Total Asset growth of Rajputana Investment & Finance Ltd?

Rajputana Investment & Finance Ltd Total Asset growth is 0.24% for FY-2025, which is below its 5-year CAGR of 5.89%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rajputana Investment & Finance Ltd?

Promoters hold 74.64% of the Rajputana Investment & Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Rajputana Investment & Finance Ltd vs Industry Peers?

Rajputana Investment & Finance Ltd AUM CAGR is 5.89%, compared to the 5-year industry median CAGR of 9.45%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Rajputana Investment & Finance Ltd vs industry peers

Rajputana Investment & Finance 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%	5.95	9.95
PPOP%	-26.76	-13.31
RoA%	8.9	0.8

Q.3 Operating efficiency of Rajputana Investment & Finance Ltd vs industry peers?

Rajputana Investment & Finance Ltd ROCE (2.9) is above the industry median of (1.9); while the current ROE (2.1) are above than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	5.95	9.95
PPOP%	-26.76	-13.31
RoA%	8.9	0.8
ROCE%	12.9	1.9
ROE%	9.5	1.2

Valuation & price assessment

Q.1 Stock return of Rajputana Investment & Finance Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of 18.08% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	18.1%	22.1%	-12.1%

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	86.81	37.28	33.72
Price to Book	2.6	2.60	0.94
Price to Sales	1.7	5.11	12.44
EV to EBITDA	63.11	24.73	9.97

Q.4 Valuation ratios of Rajputana Investment & Finance Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 2.6% is similar than its historical median of 2.60%, indicating that at the current price the stock is fairly valued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Rajputana Investment & Finance Ltd return on invested capital (ROIC) is 9.55% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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