Check Before You Invest : Sujala Trading & Holdings Ltd

BSE: 539117 NSE: ISIN: INE029H01016

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Sujala Trading & Holdings Ltd belong to?

Sujala Trading & Holdings Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Sujala Trading & Holdings Ltd a good quality company?

Sujala Trading & Holdings Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Sujala Trading & Holdings Ltd undervalued or overvalued?

Sujala Trading & Holdings Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Sujala Trading & Holdings Ltd a good buy now?

Sujala Trading & Holdings 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 Sujala Trading & Holdings Ltd?

Sujala Trading & Holdings Ltd Operating Income growth is -8.59% for FY-2025, which is below its 5-year CAGR of -1.54%, indicating slower growth.

Q.2 Return on Assets of Sujala Trading & Holdings Ltd?

Sujala Trading & Holdings Ltd Return on Asset is -0.6%, which is below its 5-year historical median of 0.4%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	-9.2	4.26
PPOP%	-8.8	17.76
RoA%	-0.6	0.4

Q.3 Return on Equity (ROE) of Sujala Trading & Holdings Ltd?

Sujala Trading & Holdings Ltd Return on Equity is -0.9% for FY-2025, which is below its 5-year historical median of 0.7%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Sujala Trading & Holdings Ltd?

Sujala Trading & Holdings Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -8.8% for FY-2025, which is below its 5-year median(17.76%), indicating decreasing margins.

Q.5 Net Profit Margin of Sujala Trading & Holdings Ltd?

Sujala Trading & Holdings 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 -9.2% for FY-2025, which is below its 5-year median( 4.26%), indicating decreasing margins.

Q.6 Total Asset growth of Sujala Trading & Holdings Ltd?

Sujala Trading & Holdings Ltd Total Asset growth is 11.81% for FY-2025, which is above its 5-year CAGR of 1.68%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Sujala Trading & Holdings Ltd?

Promoters hold 15.57% of the Sujala Trading & Holdings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Sujala Trading & Holdings Ltd vs Industry Peers?

Sujala Trading & Holdings Ltd AUM CAGR is 1.68%, 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 Sujala Trading & Holdings Ltd vs industry peers

Sujala Trading & Holdings Ltd profit metrics are in line with the industry median level of -0.88%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	-9.2	9.95
PPOP%	-8.8	-13.4
RoA%	-0.6	0.8

Q.3 Operating efficiency of Sujala Trading & Holdings Ltd vs industry peers?

Sujala Trading & Holdings Ltd ROCE (0.6) is below the industry median of (1.9); while the current ROE (0.7) 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%	-9.2	9.95
PPOP%	-8.8	-13.4
RoA%	-0.6	0.8
ROCE%	-0.6	1.9
ROE%	-0.9	1.2

Valuation & price assessment

Q.1 Stock return of Sujala Trading & Holdings Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -8.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-8.8%	27.6%	9.1%	-63.2%

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	70.12	113.29	33.72
Price to Book	0.82	1.09	0.94
Price to Sales	12.55	6.98	12.44
EV to EBITDA	69.69	36.09	9.97

Q.4 Valuation ratios of Sujala Trading & Holdings Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.82% is lower than its historical median of 1.09%, 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?

Sujala Trading & Holdings Ltd return on invested capital (ROIC) is -0.61% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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