Check Before You Invest : Regency Fincorp Ltd

BSE: 540175 NSE: ISIN: INE964R01013

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Regency Fincorp Ltd belong to?

Regency Fincorp Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Regency Fincorp Ltd a good quality company?

Regency Fincorp Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Regency Fincorp Ltd undervalued or overvalued?

Regency Fincorp Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Regency Fincorp Ltd a good buy now?

Regency Fincorp 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 Regency Fincorp Ltd?

Regency Fincorp Ltd Operating Income growth is 30.63% for FY-2025, which is below its 5-year CAGR of 42.56%, indicating slower growth.

Q.2 Return on Assets of Regency Fincorp Ltd?

Regency Fincorp Ltd Return on Asset is 2.6%, which is above its 5-year historical median of 1.1%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	24.93	11.71
PPOP%	-	-
RoA%	2.6	1.1

Q.3 Return on Equity (ROE) of Regency Fincorp Ltd?

Regency Fincorp Ltd Return on Equity is 6.5% for FY-2025, which is above its 5-year historical median of 6.3%, indicating the business is making better use of its shareholders capital.

Q.4 Net Profit Margin of Regency Fincorp Ltd?

Regency Fincorp 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 24.93% for FY-2025, which is above its 5-year median( 11.71%), indicating increasing margins.

Q.5 Total Asset growth of Regency Fincorp Ltd?

Regency Fincorp Ltd Total Asset growth is 55.78% for FY-2025, which is above its 5-year CAGR of 43.99%, indicating faster growth.

Q.6 Capital Adequacy ratio of Regency Fincorp Ltd?

Regency Fincorp Ltd Capital Adequacy ratio (CAR) is 64.4% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Regency Fincorp Ltd?

Promoters hold 23.74% of the Regency Fincorp Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Regency Fincorp Ltd vs Industry Peers?

Regency Fincorp Ltd AUM CAGR is 43.99%, 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 Regency Fincorp Ltd vs industry peers

Regency Fincorp Ltd profit metrics are above the industry median level of -0.88%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	24.93	9.95
PPOP%	-	-13.4
RoA%	2.6	0.8

Q.3 Operating efficiency of Regency Fincorp Ltd vs industry peers?

Regency Fincorp Ltd ROCE (8.2) is above the industry median of (1.9); while the current ROE (6.3) 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%	24.93	9.95
PPOP%	-	-13.4
RoA%	2.6	0.8
ROCE%	7.9	1.9
ROE%	6.5	1.2

Valuation & price assessment

Q.1 Stock return of Regency Fincorp Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of 43.83% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	43.8%	61.7%	10.1%

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	21.58	18.53	33.72
Price to Book	1.78	0.84	0.94
Price to Sales	8.55	2.64	12.44
EV to EBITDA	11.71	10.51	9.97

Q.4 Valuation ratios of Regency Fincorp Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.78% is higher than its historical median of 0.84%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Regency Fincorp Ltd return on invested capital (ROIC) is 5.7% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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