Check Before You Invest : Starteck Finance Ltd

BSE: 512381 NSE: STARTECK ISIN: INE992I01013

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Starteck Finance Ltd belong to?

Starteck Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Starteck Finance Ltd a good quality company?

Starteck Finance Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Starteck Finance Ltd undervalued or overvalued?

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

Q.4 Is Starteck Finance Ltd a good buy now?

Starteck Finance Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Starteck Finance Ltd?

Starteck Finance Ltd Operating Income growth is 6.2% for FY-2025, which is above its 5-year CAGR of 1.17%, indicating faster growth.

Q.2 Return on Assets of Starteck Finance Ltd?

Starteck Finance Ltd Return on Asset is 2.4%, which is below its 5-year historical median of 3.5%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	33.87	37.61
PPOP%	-13.33	7.14
RoA%	2.4	3.5

Q.3 Return on Equity (ROE) of Starteck Finance Ltd?

Starteck Finance Ltd Return on Equity is 5% for FY-2025, which is below its 5-year historical median of 6%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Starteck Finance Ltd?

Starteck Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -13.33% for FY-2025, which is below its 5-year median(7.14%), indicating decreasing margins.

Q.5 Net Profit Margin of Starteck Finance Ltd?

Starteck Finance 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 33.87% for FY-2025, which is below its 5-year median( 37.61%), indicating decreasing margins.

Q.6 Total Asset growth of Starteck Finance Ltd?

Starteck Finance Ltd Total Asset growth is 25.47% for FY-2025, which is above its 5-year CAGR of 17.81%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Starteck Finance Ltd?

Promoters hold 73.30% of the Starteck Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Starteck Finance Ltd vs Industry Peers?

Starteck Finance Ltd AUM CAGR is 17.81%, compared to the 5-year industry median CAGR of 9.9%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Starteck Finance Ltd vs industry peers

Starteck Finance 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%	33.87	15.95
PPOP%	-13.33	4.54
RoA%	2.4	1.45

Q.3 Operating efficiency of Starteck Finance Ltd vs industry peers?

Starteck Finance Ltd ROCE (7.7) is above the industry median of (4.4); while the current ROE (6) are above than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	33.87	15.95
PPOP%	-13.33	4.54
RoA%	2.4	1.45
ROCE%	7.6	4.4
ROE%	5	2.7

Valuation & price assessment

Q.1 Stock return of Starteck Finance Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 18.9% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	18.9%	28.1%	28.3%	-17.3%

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	12.82	15.80	28.96
Price to Book	1.04	0.97	1.11
Price to Sales	7.52	9.10	9.10
EV to EBITDA	11.44	14.95	11.77

Q.4 Valuation ratios of Starteck Finance Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.04% is higher than its historical median of 0.97%, 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?

Starteck Finance Ltd return on invested capital (ROIC) is 5.86% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check more companies

1. Tata Invest Corp

2. Manappuram Finance

3. CreditAccess Grameen

4. IIFL Finance

5. Five Star Business

6. Edelweiss Financial

7. SBFC Finance

8. Bengal & Assam

9. MAS Financial Serv

10. Fedbank Financial

Check trending companies

1. Jindal Saw Ltd.

2. Union Bank Of India

3. Lloyds Metals & Energy Ltd.

4. Astral Ltd.

5. Max Healthcare Institute Ltd.