Check Before You Invest : Satin Creditcare Network Ltd

BSE: 539404 NSE: SATIN ISIN: INE836B01017

| Sector: BFSI | Industry: Finance Term Lending

Snapshot

Q.1 Which industry/sub-sector does Satin Creditcare Network Ltd belong to?

Satin Creditcare Network Ltd belongs to the BFSI sector, operating specifically within the Finance Term Lending segment.

Q.2 Is Satin Creditcare Network Ltd a good quality company?

Satin Creditcare Network Ltd is a weak quality company, based on a inconsistent 9-year financial track record.

Q.3 Is Satin Creditcare Network Ltd undervalued or overvalued?

Satin Creditcare Network Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Satin Creditcare Network Ltd a good buy now?

Satin Creditcare Network Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Satin Creditcare Network Ltd?

Satin Creditcare Network Ltd Operating Income growth is 16.16% for FY-2025, which is above its 5-year CAGR of 11.61%, indicating faster growth.

Q.2 Return on Assets of Satin Creditcare Network Ltd?

Satin Creditcare Network Ltd Return on Asset is 1.7%, which is above its 5-year historical median of 0.3%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	7.16	1.5
PPOP%	3.27	3.27
RoA%	1.7	0.3

Q.3 Return on Equity (ROE) of Satin Creditcare Network Ltd?

Satin Creditcare Network Ltd Return on Equity is 7.5% for FY-2025, which is above its 5-year historical median of 1.4%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Satin Creditcare Network Ltd?

Satin Creditcare Network Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 3.27% for FY-2025, which is in line with its 5-year median(3.27%), indicating stable margins.

Q.5 Net Profit Margin of Satin Creditcare Network Ltd?

Satin Creditcare Network 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 7.16% for FY-2025, which is above its 5-year median( 1.5%), indicating increasing margins.

Q.6 Total Asset growth of Satin Creditcare Network Ltd?

Satin Creditcare Network Ltd Total Asset growth is 10.19% for FY-2025, which is above its 5-year CAGR of 9.6%, indicating faster growth.

Q.7 Capital Adequacy ratio of Satin Creditcare Network Ltd?

Satin Creditcare Network Ltd Capital Adequacy ratio (CAR) is 25.85% 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 Satin Creditcare Network Ltd?

Promoters hold 36.17% of the Satin Creditcare Network Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Satin Creditcare Network Ltd vs Industry Peers?

Satin Creditcare Network Ltd AUM CAGR is 9.6%, compared to the 5-year industry median CAGR of 3.93%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Satin Creditcare Network Ltd vs industry peers

Satin Creditcare Network Ltd profit metrics are below the industry median level of 3.18%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	7.16	4.47
PPOP%	3.27	4.07
RoA%	1.7	1

Q.3 Operating efficiency of Satin Creditcare Network Ltd vs industry peers?

Satin Creditcare Network Ltd ROCE (8.9) is below the industry median of (9.28); while the current ROE (1.4) are below than the 5-year average Industry ROE (5.8). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	7.16	4.47
PPOP%	3.27	4.07
RoA%	1.7	1
ROCE%	11.9	9.28
ROE%	7.5	5.8

Valuation & price assessment

Q.1 Stock return of Satin Creditcare Network Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -3.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-3.7%	19.3%	5.8%	20.5%

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	11.16	8.14	13.28
Price to Book	0.8	0.69	1.13
Price to Sales	0.75	0.68	4.77
EV to EBITDA	5.14	5.50	10.31

Q.4 Valuation ratios of Satin Creditcare Network Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.8% is higher than its historical median of 0.69%, 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?

Satin Creditcare Network Ltd return on invested capital (ROIC) is 8.5% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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