Check Before You Invest : Sodhani Capital Ltd

BSE: 544560 NSE: ISIN: INE0QU501030

| Sector: BFSI | Industry: Finance - Others

Snapshot

Q.1 Which industry/sub-sector does Sodhani Capital Ltd belong to?

Sodhani Capital Ltd belongs to the BFSI sector, operating specifically within the Finance - Others segment.

Q.2 Is Sodhani Capital Ltd a good quality company?

Sodhani Capital Ltd is a quality company, based on a 4-year financial track record.

Q.3 Is Sodhani Capital Ltd undervalued or overvalued?

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

Q.4 Is Sodhani Capital Ltd a good buy now?

Sodhani Capital 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 Sodhani Capital Ltd?

Sodhani Capital Ltd revenue growth is 38.1% for FY-2025, which is above its 3-year CAGR of 27.89%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Sodhani Capital Ltd?

Sodhani Capital Ltd Return on capital employed is 47.2% for FY-2025, which is below its 3-year historical median of 77.4%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Sodhani Capital Ltd?

Sodhani Capital Ltd Return on Asset is 30.3%, which is below its 3-year historical median of 50.8%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Sodhani Capital Ltd?

Sodhani Capital Ltd Return on equity is 34.5% for FY-2025, which is below its 3-year historical median of 60.9%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Sodhani Capital Ltd?

Sodhani Capital Ltd Cash conversion cycle is -20 days, below its 3-year historical median of -0 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	0.57	0.68
ROE	34.5	60.9
ROCE	47.2	77.4
Cash Conversion Cycle	-20 days	-

Q.6 Gross Profit margin of Sodhani Capital Ltd?

Sodhani Capital Ltd Gross profit margin which is the profit after deduction of direct costs, is 74.3% for FY-2025, which is in line with its 3-year median of 74.3%, indicating stable margins.

Q.7 Operating Profit Margin of Sodhani Capital Ltd?

Sodhani Capital Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 73.71% for FY-2025, which is in line with its 3-year median of 72.02% indicating stable margins.

Q.8 Net Profit Margin of Sodhani Capital Ltd?

Sodhani Capital Ltd Net Profit Margin is 53.26% for FY-2025, is in line with with its 3-year median of 53.26%, indicating stable margins.

	Current Level	3-year Historic Median
Gross Profit Margin	74.3	74.3
Operating Profit Margin	73.71	72.02
Net Profit Margin	53.26	53.26

Q.9 Debt to Equity ratio of Sodhani Capital Ltd?

Sodhani Capital Ltd Debt-to-Equity ratio is 0.01, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Sodhani Capital Ltd?

Sodhani Capital Ltd Debt to cash flow from operations is 0.02, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sodhani Capital Ltd?

Promoters hold 73.57% of the Sodhani Capital Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Sodhani Capital Ltd vs industry peers?

Sodhani Capital Ltd revenue CAGR is 27.89%, compared to the industry median CAGR of 24.34%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	38.1	24.3
Gross Profit Growth	4.5	37.9
Operating Profit Growth	41.1	23.4
Net Profit Growth	-1.4	32.5

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	0.57	0.62
ROE	34.5	7.1
ROCE	47.2	11
Cash Conversion Cycle (days)	-20.5	8

Valuation & price assessment

Q.1 Stock return of Sodhani Capital Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 Valuation ratios of Sodhani Capital Ltd vs historical?

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

Q.4 How do the current valuation ratios compare with 3-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	24.65	28.15	42.47
Price to Book	3.36	4.06	4.92
Price to Sales	13.13	14.99	9.79
EV to EBITDA	17.61	20.12	20.62

Check more companies

1. Anand Rathi Wealth

2. Prudent Corporate

3. Centrum Capital

4. Delphi World Money

5. Nidhi Granites

6. Viram Suvarn

7. Sodhani Capital

8. Caspian Corpo. Serv.

9. Navigant Corp.Adv

10. Onesource Inds.& Ven

Check trending companies

1. Can Fin Homes Ltd.

2. Home First Finance Company India Ltd.

3. Sammaan Capital Ltd.

4. Force Motors Ltd.

5. KEI Industries Ltd.