Check Before You Invest : Scintilla Commercial & Credit Ltd

Snapshot

Q.1 Which industry/sub-sector does Scintilla Commercial & Credit Ltd belong to?

Scintilla Commercial & Credit Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Scintilla Commercial & Credit Ltd a good quality company?

Scintilla Commercial & Credit Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Scintilla Commercial & Credit Ltd undervalued or overvalued?

Scintilla Commercial & Credit Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Scintilla Commercial & Credit Ltd a good buy now?

Scintilla Commercial & Credit 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 Scintilla Commercial & Credit Ltd?

Scintilla Commercial & Credit Ltd Operating Income growth is 5.08% for FY-2025, which is below its 5-year CAGR of 6.15%, indicating slower growth.

Q.2 Return on Assets of Scintilla Commercial & Credit Ltd?

Scintilla Commercial & Credit Ltd Return on Asset is 0.3%, which is in line with its 5-year historical median of 0.3%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	5.57	5.06
PPOP%	8.57	8.57
RoA%	0.3	0.3

Q.3 Return on Equity (ROE) of Scintilla Commercial & Credit Ltd?

Scintilla Commercial & Credit Ltd Return on Equity is 0.4% for FY-2025, which is above its 5-year historical median of 0.3%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Scintilla Commercial & Credit Ltd?

Scintilla Commercial & Credit Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 8.57% for FY-2025, which is in line with its 5-year median(8.57%), indicating stable margins.

Q.5 Net Profit Margin of Scintilla Commercial & Credit Ltd?

Scintilla Commercial & Credit 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 5.57% for FY-2025, which is above its 5-year median( 5.06%), indicating increasing margins.

Q.6 Total Asset growth of Scintilla Commercial & Credit Ltd?

Scintilla Commercial & Credit Ltd Total Asset growth is 0% for FY-2025, which is below its 5-year CAGR of 1.55%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Scintilla Commercial & Credit Ltd?

Promoters hold 18.81% of the Scintilla Commercial & Credit Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Scintilla Commercial & Credit Ltd vs Industry Peers?

Scintilla Commercial & Credit Ltd AUM CAGR is 1.55%, compared to the 5-year industry median CAGR of 9.9%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Scintilla Commercial & Credit Ltd vs industry peers

Scintilla Commercial & Credit 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%	5.57	15.95
PPOP%	8.57	4.54
RoA%	0.3	1.45

Q.3 Operating efficiency of Scintilla Commercial & Credit Ltd vs industry peers?

Scintilla Commercial & Credit Ltd ROCE (0.5) is below the industry median of (4.4); while the current ROE (0.3) 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%	5.57	15.95
PPOP%	8.57	4.54
RoA%	0.3	1.45
ROCE%	0.5	4.4
ROE%	0.4	2.7

Valuation & price assessment

Q.1 Stock return of Scintilla Commercial & Credit Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -6.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-6.8%	15.2%	62.5%	183.1%

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	-	151.69	28.96
Price to Book	1.73	0.55	1.11
Price to Sales	28.34	9.20	9.10
EV to EBITDA	-212.93	50.50	11.77

Q.4 Valuation ratios of Scintilla Commercial & Credit Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.73% is higher than its historical median of 0.55%, 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?

Scintilla Commercial & Credit Ltd return on invested capital (ROIC) is 0.6% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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