Check Before You Invest : Summit Securities Ltd

BSE: 533306 NSE: SUMMITSEC ISIN: INE519C01017

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

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

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

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

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

Q.3 Is Summit Securities Ltd undervalued or overvalued?

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

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

Summit Securities 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 Summit Securities Ltd?

Summit Securities Ltd Operating Income growth is -2.7% for FY-2025, which is below its 5-year CAGR of 8.25%, indicating slower growth.

Q.2 Return on Assets of Summit Securities Ltd?

Summit Securities Ltd Return on Asset is 0.7%, which is below its 5-year historical median of 0.8%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	66.47	66.94
PPOP%	-2.22	-2.22
RoA%	0.7	0.8

Q.3 Return on Equity (ROE) of Summit Securities Ltd?

Summit Securities Ltd Return on Equity is 0.8% for FY-2025, which is in line with its 5-year historical median of 0.8%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Summit Securities Ltd?

Summit Securities Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -2.22% for FY-2025, which is in line with its 5-year median(-2.22%), indicating stable margins.

Q.5 Net Profit Margin of Summit Securities Ltd?

Summit Securities 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 66.47% for FY-2025, which is below its 5-year median( 66.94%), indicating decreasing margins.

Q.6 Total Asset growth of Summit Securities Ltd?

Summit Securities Ltd Total Asset growth is 13.24% for FY-2025, which is below its 5-year CAGR of 31.02%, indicating slower growth.

Q.7 Capital Adequacy ratio of Summit Securities Ltd?

Summit Securities Ltd Capital Adequacy ratio (CAR) is 98.65% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

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

Promoters hold 74.65% of the Summit Securities Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Summit Securities Ltd vs Industry Peers?

Summit Securities Ltd AUM CAGR is 31.02%, 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 Summit Securities Ltd vs industry peers

Summit Securities 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%	66.47	15.95
PPOP%	-2.22	4.54
RoA%	0.7	1.45

Q.3 Operating efficiency of Summit Securities Ltd vs industry peers?

Summit Securities Ltd ROCE (1.1) is below the industry median of (4.4); while the current ROE (0.8) are below than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	66.47	15.95
PPOP%	-2.22	4.54
RoA%	0.7	1.45
ROCE%	1.1	4.4
ROE%	0.8	2.7

Valuation & price assessment

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

Over the last 9 years, the stock has delivered a CAGR of 18.2% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	18.2%	24.6%	35.8%	-18.8%

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	42.45	47.90	28.96
Price to Book	0.51	0.38	1.11
Price to Sales	31.06	33.79	9.10
EV to EBITDA	32.76	37.42	11.77

Q.4 Valuation ratios of Summit Securities Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.51% is higher than its historical median of 0.38%, 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?

Summit Securities Ltd return on invested capital (ROIC) is 0.75% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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