Check Before You Invest : Step Two Corporation Ltd

Snapshot

Q.1 Which industry/sub-sector does Step Two Corporation Ltd belong to?

Step Two Corporation Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Step Two Corporation Ltd a good quality company?

Step Two Corporation Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Step Two Corporation Ltd undervalued or overvalued?

Step Two Corporation Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Step Two Corporation Ltd a good buy now?

Step Two Corporation 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 Step Two Corporation Ltd?

Step Two Corporation Ltd Operating Income growth is -26.09% for FY-2025, which is below its 5-year CAGR of -19.41%, indicating slower growth.

Q.2 Return on Assets of Step Two Corporation Ltd?

Step Two Corporation Ltd Return on Asset is -0.4%, which is below its 5-year historical median of 2.6%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	-13.99	36.64
PPOP%	-27.69	29.41
RoA%	-0.4	2.6

Q.3 Return on Equity (ROE) of Step Two Corporation Ltd?

Step Two Corporation Ltd Return on Equity is -0.5% for FY-2025, which is below its 5-year historical median of 2.9%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Step Two Corporation Ltd?

Step Two Corporation Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -27.69% for FY-2025, which is below its 5-year median(29.41%), indicating decreasing margins.

Q.5 Net Profit Margin of Step Two Corporation Ltd?

Step Two Corporation 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 -13.99% for FY-2025, which is below its 5-year median( 36.64%), indicating decreasing margins.

Q.6 Total Asset growth of Step Two Corporation Ltd?

Step Two Corporation Ltd Total Asset growth is -2.38% for FY-2025, which is below its 5-year CAGR of 0.61%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Step Two Corporation Ltd?

Promoters hold 56.33% of the Step Two Corporation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Step Two Corporation Ltd vs Industry Peers?

Step Two Corporation Ltd AUM CAGR is 0.61%, 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 Step Two Corporation Ltd vs industry peers

Step Two Corporation 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%	-13.99	15.95
PPOP%	-27.69	4.54
RoA%	-0.4	1.45

Q.3 Operating efficiency of Step Two Corporation Ltd vs industry peers?

Step Two Corporation Ltd ROCE (3.7) is below the industry median of (4.4); while the current ROE (2.9) are above than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	-13.99	15.95
PPOP%	-27.69	4.54
RoA%	-0.4	1.45
ROCE%	-0.4	4.4
ROE%	-0.5	2.7

Valuation & price assessment

Q.1 Stock return of Step Two Corporation Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 13.1% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	13.1%	40.1%	29.5%	-3.9%

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	15.28	14.93	28.96
Price to Book	2.59	1.77	1.11
Price to Sales	6.09	7.83	9.10
EV to EBITDA	10.03	9.39	11.77

Q.4 Valuation ratios of Step Two Corporation Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 2.59% is higher than its historical median of 1.77%, 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?

Step Two Corporation Ltd return on invested capital (ROIC) is 0.23% 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. Tata Consumer Products Ltd.

2. Bank Of Baroda

3. RR Kabel Ltd.

4. LTM Ltd.

5. Blue Star Ltd.