Check Before You Invest : Superior Finlease Ltd

Snapshot

Q.1 Which industry/sub-sector does Superior Finlease Ltd belong to?

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

Q.2 Is Superior Finlease Ltd a good quality company?

Superior Finlease Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Superior Finlease Ltd undervalued or overvalued?

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

Q.4 Is Superior Finlease Ltd a good buy now?

Superior Finlease 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 Superior Finlease Ltd?

Superior Finlease Ltd Operating Income growth is -31.91% for FY-2025, which is below its 5-year CAGR of -8.9%, indicating slower growth.

Q.2 Return on Assets of Superior Finlease Ltd?

Superior Finlease Ltd Return on Asset is 0%, which is below its 5-year historical median of 0.4%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	2.04	7.37
PPOP%	-66.67	-26.92
RoA%	-	0.4

Q.3 Return on Equity (ROE) of Superior Finlease Ltd?

Superior Finlease Ltd Return on Equity is 0.3% for FY-2025, which is below its 5-year historical median of 5.6%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Superior Finlease Ltd?

Superior Finlease Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -66.67% for FY-2025, which is below its 5-year median(-26.92%), indicating decreasing margins.

Q.5 Net Profit Margin of Superior Finlease Ltd?

Superior Finlease 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 2.04% for FY-2025, which is below its 5-year median( 7.37%), indicating decreasing margins.

Q.6 Total Asset growth of Superior Finlease Ltd?

Superior Finlease Ltd Total Asset growth is 2.51% for FY-2025, which is below its 5-year CAGR of 9.87%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Superior Finlease Ltd?

Promoters hold 3.06% of the Superior Finlease Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Superior Finlease Ltd vs Industry Peers?

Superior Finlease Ltd AUM CAGR is 9.87%, 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 Superior Finlease Ltd vs industry peers

Superior Finlease Ltd profit metrics are below the industry median level of 7.31%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	2.04	15.95
PPOP%	-66.67	4.54
RoA%	-	1.45

Q.3 Operating efficiency of Superior Finlease Ltd vs industry peers?

Superior Finlease Ltd ROCE (0.55) is below the industry median of (4.4); while the current ROE (5.6) 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%	2.04	15.95
PPOP%	-66.67	4.54
RoA%	-	1.45
ROCE%	-	4.4
ROE%	0.3	2.7

Valuation & price assessment

Q.1 Stock return of Superior Finlease Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of -35.19% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-35.2%	2.3%	11.8%

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	-	27.56	28.96
Price to Book	1.4	1.41	1.11
Price to Sales	16.28	6.20	9.10
EV to EBITDA	-933.54	138.71	11.77

Q.4 Valuation ratios of Superior Finlease Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.4% is lower than its historical median of 1.41%, 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?

Superior Finlease Ltd return on invested capital (ROIC) is 0.03% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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