Check Before You Invest : Rapid Investments Ltd

Snapshot

Q.1 Which industry/sub-sector does Rapid Investments Ltd belong to?

Rapid Investments Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Rapid Investments Ltd a good quality company?

Rapid Investments Ltd is a quality company, based on a 9-year financial track record.

Q.3 Is Rapid Investments Ltd undervalued or overvalued?

Rapid Investments Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Rapid Investments Ltd a good buy now?

Rapid Investments 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 Rapid Investments Ltd?

Rapid Investments Ltd Operating Income growth is -7.25% for FY-2025, which is below its 5-year CAGR of 13.51%, indicating slower growth.

Q.2 Return on Assets of Rapid Investments Ltd?

Rapid Investments Ltd Return on Asset is 2.5%, which is above its 5-year historical median of 0.6%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	19.92	10.57
PPOP%	20	20
RoA%	2.5	0.6

Q.3 Return on Equity (ROE) of Rapid Investments Ltd?

Rapid Investments Ltd Return on Equity is 5.3% for FY-2025, which is above its 5-year historical median of 1.6%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Rapid Investments Ltd?

Rapid Investments Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 20% for FY-2025, which is in line with its 5-year median(20%), indicating stable margins.

Q.5 Net Profit Margin of Rapid Investments Ltd?

Rapid Investments 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 19.92% for FY-2025, which is above its 5-year median( 10.57%), indicating increasing margins.

Q.6 Total Asset growth of Rapid Investments Ltd?

Rapid Investments Ltd Total Asset growth is 87.12% for FY-2025, which is above its 5-year CAGR of 21.21%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Rapid Investments Ltd?

Promoters hold 70.55% of the Rapid Investments Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Rapid Investments Ltd vs Industry Peers?

Rapid Investments Ltd AUM CAGR is 21.21%, compared to the 5-year industry median CAGR of 9.9%, indicating faster growth and gaining its market share.

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

Rapid Investments Ltd profit metrics are in line with the industry median level of 7.31%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	19.92	15.95
PPOP%	20	4.54
RoA%	2.5	1.45

Q.3 Operating efficiency of Rapid Investments Ltd vs industry peers?

Rapid Investments Ltd ROCE (2.9) is below the industry median of (4.4); while the current ROE (1.6) are below than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	19.92	15.95
PPOP%	20	4.54
RoA%	2.5	1.45
ROCE%	7.1	4.4
ROE%	5.3	2.7

Valuation & price assessment

Q.1 Stock return of Rapid Investments Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 16.9% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	16.9%	27.4%	5.4%	4.7%

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	42.91	137.73	28.96
Price to Book	1.84	5.60	1.11
Price to Sales	11.4	19.72	9.10
EV to EBITDA	34.07	50.31	11.77

Q.4 Valuation ratios of Rapid Investments Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.84% is lower than its historical median of 5.60%, 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?

Rapid Investments Ltd return on invested capital (ROIC) is 5.33% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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