Check Before You Invest : Sharp Investments Ltd

BSE: 538212 NSE: ISIN: INE909D01026

| Sector: BFSI | Industry: Finance - Investment

Snapshot

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

Sharp Investments Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

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

Sharp Investments Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Sharp Investments Ltd undervalued or overvalued?

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

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

Sharp 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 Sharp Investments Ltd?

Sharp Investments Ltd Operating Income growth is -30.77% for FY-2025, which is below its 5-year CAGR of 55.18%, indicating slower growth.

Q.2 Return on Assets of Sharp Investments Ltd?

Sharp Investments Ltd Return on Asset is 0%, which is above its 5-year historical median of -0.1%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	0.11	0.11
PPOP%	-	-71.43
RoA%	-	-0.1

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

Sharp Investments Ltd Return on Equity is 0% for FY-2025, which is above its 5-year historical median of -0.1%, indicating the business is making better use of its shareholders capital.

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

Sharp Investments Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -% for FY-2025, which is above its 5-year median(-71.43%), indicating increasing margins.

Q.5 Net Profit Margin of Sharp Investments Ltd?

Sharp 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 0.11% for FY-2025, which is in line with its 5-year median( 0.11%), indicating stable margins.

Q.6 Total Asset growth of Sharp Investments Ltd?

Sharp Investments Ltd Total Asset growth is 1.77% for FY-2025, which is above its 5-year CAGR of 1.34%, indicating faster growth.

Ownership & governance

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

Promoters hold 25.63% of the Sharp Investments Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Sharp Investments Ltd AUM CAGR is 1.34%, 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 Sharp Investments Ltd vs industry peers

Sharp Investments Ltd profit metrics are in line with the industry median level of -0.85%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	0.11	9.95
PPOP%	-	-13.31
RoA%	-	0.8

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

Sharp Investments Ltd ROCE (-0.1) is below the industry median of (1.9); while the current ROE (-0.1) 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%	0.11	9.95
PPOP%	-	-13.31
RoA%	-	0.8
ROCE%	-	1.9
ROE%	-	1.2

Valuation & price assessment

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

Over the last 9 years, the stock has delivered a CAGR of -25.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-25.7%	3.7%	-29.7%	-25%

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	1210.49	270.17	33.72
Price to Book	0.34	0.68	0.94
Price to Sales	36.82	156.00	12.44
EV to EBITDA	707.99	-133.59	9.97

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

The current Price to book ratio (P/B) 0.34% is lower than its historical median of 0.68%, 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?

Sharp Investments Ltd return on invested capital (ROIC) is 0.01% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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