Check Before You Invest : Ranjit Securities Ltd

Q: Which industry/sub-sector does Ranjit Securities Ltd belong to?

Ranjit Securities Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q: Is Ranjit Securities Ltd a good quality company?

Ranjit Securities 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 Ranjit Securities Ltd undervalued or overvalued?

Ranjit Securities Ltd appears 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: 30.91, Historic Median: 5.85. Price to Book, Current: 3.92, Historic Median: 0.40. Price to Sales, Current: 17.96, Historic Median: -. EV to EBITDA, Current: 22.58, Historic Median: 4.54

Q: Is Ranjit Securities Ltd a good buy now?

Ranjit Securities 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 Ranjit Securities Ltd?

Ranjit Securities Ltd Operating Income growth is 34.83% for FY-2025, which is above its 5-year CAGR of -3.23%, indicating faster growth.

Q: Return on Assets of Ranjit Securities Ltd?

Ranjit Securities Ltd Return on Asset is 8.1%, which is above its 5-year historical median of 3.3%, indicating improved earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 57.61, Historic Median: 24.86. PPOP (%), Current: 53.33, Historic Median: 6.9. RoA (%), Current: 8.1, Historic Median: 3.3

Q: Return on Equity (ROE) of Ranjit Securities Ltd?

Ranjit Securities Ltd Return on Equity is 12.5% for FY-2025, which is above its 5-year historical median of 5.2%, indicating the business is making better use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Ranjit Securities Ltd?

Ranjit Securities Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 53.33% for FY-2025, which is above its 5-year median(6.9%), indicating increasing margins.

Q: Net Profit Margin of Ranjit Securities Ltd?

Ranjit Securities 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 57.61% for FY-2025, which is above its 5-year median( 24.86%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

Ranjit Securities Ltd return on invested capital (ROIC) is 8.44% 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 Ranjit Securities Ltd belong to?

Ranjit Securities Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Ranjit Securities Ltd a good quality company?

Ranjit Securities 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 Ranjit Securities Ltd undervalued or overvalued?

Ranjit Securities Ltd appears 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	30.91	5.85
Price to Book	3.92	0.40
Price to Sales	17.96	-
EV to EBITDA	22.58	4.54

Q.4 Is Ranjit Securities Ltd a good buy now?

Ranjit Securities 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 Ranjit Securities Ltd?

Ranjit Securities Ltd Operating Income growth is 34.83% for FY-2025, which is above its 5-year CAGR of -3.23%, indicating faster growth.

Q.2 Return on Assets of Ranjit Securities Ltd?

Ranjit Securities Ltd Return on Asset is 8.1%, which is above its 5-year historical median of 3.3%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	57.61	24.86
PPOP (%)	53.33	6.9
RoA (%)	8.1	3.3

Q.3 Return on Equity (ROE) of Ranjit Securities Ltd?

Ranjit Securities Ltd Return on Equity is 12.5% for FY-2025, which is above its 5-year historical median of 5.2%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Ranjit Securities Ltd?

Ranjit Securities Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 53.33% for FY-2025, which is above its 5-year median(6.9%), indicating increasing margins.

Q.5 Net Profit Margin of Ranjit Securities Ltd?

Ranjit Securities 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 57.61% for FY-2025, which is above its 5-year median( 24.86%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

Ranjit Securities Ltd return on invested capital (ROIC) is 8.44% 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 Ranjit Securities Ltd?

Ranjit Securities Ltd Total Asset growth is 26.16% for FY-2025, which is above its 5-year CAGR of 3.78%, indicating faster growth.

Ownership & governance

D: Promoter shareholding and pledge status of Ranjit Securities Ltd?

Q.1 Promoter shareholding and pledge status of Ranjit Securities Ltd?

Promoters hold 42.56% of the Ranjit Securities Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ranjit Securities Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Ranjit Securities Ltd vs Industry Peers?

Ranjit Securities Ltd AUM CAGR is 3.78%, compared to the 5-year industry median CAGR of 9.68%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Ranjit Securities Ltd vs industry peers

Ranjit Securities Ltd profit metrics are above the industry median level of 4.73%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	57.61	12.79
PPOP (%)	53.33	-
RoA (%)	8.1	1.4

Q.3 Operating efficiency of Ranjit Securities Ltd vs industry peers?

Ranjit Securities Ltd ROCE (5.4) is above the industry median of (4.1); while the current ROE (5.2) are above than the 5-year average Industry ROE (2.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	57.61	12.79
PPOP (%)	53.33	-
RoA (%)	8.1	1.4
ROCE (%)	10.6	4.1
ROE (%)	12.5	2.2

Valuation & price assessment

Q.1 Stock return of Ranjit Securities Ltd over the last decade?

Over the last - years, the stock has delivered a CAGR of N/A% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

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	30.91	5.85	29.12
Price to Book	3.92	0.40	1.11
Price to Sales	17.96	-	9.10
EV to EBITDA	22.58	4.54	11.77

Q.3 Valuation ratios of Ranjit Securities Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 3.92 is higher than its historical median of 0.40, indicating that the stock is trading above its historical average valuation.

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