Check Before You Invest : Religare Enterprises Ltd

Snapshot

Q.1 Which industry/sub-sector does Religare Enterprises Ltd belong to?

Religare Enterprises Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Religare Enterprises Ltd a good quality company?

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

Q.3 Is Religare Enterprises Ltd undervalued or overvalued?

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

Q.4 Is Religare Enterprises Ltd a good buy now?

Religare Enterprises Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Religare Enterprises Ltd?

Religare Enterprises Ltd Operating Income growth is -46.86% for FY-2025, which is below its 5-year CAGR of 18.05%, indicating slower growth.

Q.2 Return on Assets of Religare Enterprises Ltd?

Religare Enterprises Ltd Return on Asset is -1.6%, which is below its 5-year historical median of -1.2%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	-600.04	-146.32
PPOP%	-98.41	-133.16
RoA%	-1.6	-1.2

Q.3 Return on Equity (ROE) of Religare Enterprises Ltd?

Religare Enterprises Ltd Return on Equity is -1.8% for FY-2025, which is below its 5-year historical median of -1.4%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Religare Enterprises Ltd?

Religare Enterprises Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -98.41% for FY-2025, which is above its 5-year median(-133.16%), indicating increasing margins.

Q.5 Net Profit Margin of Religare Enterprises Ltd?

Religare Enterprises 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 -600.04% for FY-2025, which is below its 5-year median( -146.32%), indicating decreasing margins.

Q.6 Total Asset growth of Religare Enterprises Ltd?

Religare Enterprises Ltd Total Asset growth is -6.78% for FY-2025, which is below its 5-year CAGR of 0.85%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Religare Enterprises Ltd?

Promoters hold 30.27% of the Religare Enterprises Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Religare Enterprises Ltd vs Industry Peers?

Religare Enterprises Ltd AUM CAGR is 0.85%, 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 Religare Enterprises Ltd vs industry peers

Religare Enterprises Ltd profit metrics are below the industry median level of -0.88%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	-600.04	9.95
PPOP%	-98.41	-13.4
RoA%	-1.6	0.8

Q.3 Operating efficiency of Religare Enterprises Ltd vs industry peers?

Religare Enterprises Ltd ROCE (-1.2) is below the industry median of (1.9); while the current ROE (-1.4) 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%	-600.04	9.95
PPOP%	-98.41	-13.4
RoA%	-1.6	0.8
ROCE%	-1.2	1.9
ROE%	-1.8	1.2

Valuation & price assessment

Q.1 Stock return of Religare Enterprises Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -2.4% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-2.4%	20.9%	10.3%	7.6%

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	-	45.47	33.72
Price to Book	2.96	3.02	0.94
Price to Sales	4264.08	643.07	12.44
EV to EBITDA	-400.38	-222.35	9.97

Q.4 Valuation ratios of Religare Enterprises Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 2.96% is lower than its historical median of 3.02%, 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?

Religare Enterprises Ltd return on invested capital (ROIC) is -1.22% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

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