Check Before You Invest : SKP Securities Ltd

BSE: 531169 NSE: ISIN: INE709B01016

| Sector: BFSI | Industry: Finance - Stock Broking

Snapshot

Q.1 Which industry/sub-sector does SKP Securities Ltd belong to?

SKP Securities Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.

Q.2 Is SKP Securities Ltd a good quality company?

SKP Securities Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is SKP Securities Ltd undervalued or overvalued?

SKP Securities Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is SKP Securities Ltd a good buy now?

SKP Securities 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 Revenue growth of SKP Securities Ltd?

SKP Securities Ltd revenue growth is 20.3% for FY-2025, which is below its 5-year CAGR of 27.52%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of SKP Securities Ltd?

SKP Securities Ltd Return on capital employed is 27.5% for FY-2025, which is above its 5-year historical median of 23.5%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of SKP Securities Ltd?

SKP Securities Ltd Return on Asset is 11.8%, which is above its 5-year historical median of 10.2%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of SKP Securities Ltd?

SKP Securities Ltd Return on equity is 21.6% for FY-2025, which is above its 5-year historical median of 19.4%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of SKP Securities Ltd?

SKP Securities Ltd Cash conversion cycle is -402 days, above its 5-year historical median of -428 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.44	0.43
ROE	21.6	19.4
ROCE	27.5	23.5
Cash Conversion Cycle	-402 days	-428 days

Q.6 Gross Profit margin of SKP Securities Ltd?

SKP Securities Ltd Gross profit margin which is the profit after deduction of direct costs, is 37.2% for FY-2025, which is in line with its 5-year median of 37.2%, indicating stable margins.

Q.7 Operating Profit Margin of SKP Securities Ltd?

SKP Securities Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 39.28% for FY-2025, which is in line with its 5-year median of 38.08% indicating stable margins.

Q.8 Net Profit Margin of SKP Securities Ltd?

SKP Securities Ltd Net Profit Margin is 26.88% for FY-2025, is in line with with its 5-year median of 26.88%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	37.2	37.2
Operating Profit Margin	39.28	38.08
Net Profit Margin	26.88	26.88

Q.9 Debt to Equity ratio of SKP Securities Ltd?

SKP Securities Ltd Debt-to-Equity ratio is 0.20, which is above with the industry average of 0.11, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of SKP Securities Ltd?

SKP Securities Ltd Debt to cash flow from operations is -1.39, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of SKP Securities Ltd?

Promoters hold 74.99% of the SKP Securities Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of SKP Securities Ltd vs industry peers?

SKP Securities Ltd revenue CAGR is 27.52%, compared to the industry median CAGR of 18.37%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	20.3	18.4
Gross Profit Growth	14.5	24.6
Operating Profit Growth	18	28.8
Net Profit Growth	15.5	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.44	0.26
ROE	21.6	8.05
ROCE	27.5	10.2
Cash Conversion Cycle (days)	-401.75	-107

Valuation & price assessment

Q.1 Stock return of SKP Securities Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 20.9% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	20.9%	37.8%	15.3%	-14.4%

Q.3 Valuation ratios of SKP Securities Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	6.74	9.16	20.01
Price to Book	1.12	1.40	1.64
Price to Sales	1.61	2.18	5.20
EV to EBITDA	3.46	4.50	6.89

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