Check Before You Invest : SW Investments Ltd

BSE: 503659 NSE: ISIN: INE948K01011

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does SW Investments Ltd belong to?

SW Investments Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is SW Investments Ltd a good quality company?

SW Investments Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is SW Investments Ltd undervalued or overvalued?

SW Investments Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is SW Investments Ltd a good buy now?

SW Investments 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 SW Investments Ltd?

SW Investments Ltd Operating Income growth is 130% for FY-2025, which is above its 5-year CAGR of -32.41%, indicating faster growth.

Q.2 Return on Assets of SW Investments Ltd?

SW Investments Ltd Return on Asset is 1%, which is in line with its 5-year historical median of 1%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	34.56	40.56
PPOP%	175	100
RoA%	1	1

Q.3 Return on Equity (ROE) of SW Investments Ltd?

SW Investments Ltd Return on Equity is 1% for FY-2025, which is in line with its 5-year historical median of 1%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of SW Investments Ltd?

SW Investments Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 175% for FY-2025, which is above its 5-year median(100%), indicating increasing margins.

Q.5 Net Profit Margin of SW Investments Ltd?

SW Investments 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 34.56% for FY-2025, which is below its 5-year median( 40.56%), indicating decreasing margins.

Q.6 Total Asset growth of SW Investments Ltd?

SW Investments Ltd Total Asset growth is 1.29% for FY-2025, which is below its 5-year CAGR of 5.34%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of SW Investments Ltd?

Promoters hold 42.78% of the SW Investments Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of SW Investments Ltd vs Industry Peers?

SW Investments Ltd AUM CAGR is 5.34%, 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 SW Investments Ltd vs industry peers

SW Investments Ltd profit metrics are above the industry median level of -0.88%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	34.56	9.95
PPOP%	175	-13.4
RoA%	1	0.8

Q.3 Operating efficiency of SW Investments Ltd vs industry peers?

SW Investments Ltd ROCE (1.4) is below the industry median of (1.9); while the current ROE (1) 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%	34.56	9.95
PPOP%	175	-13.4
RoA%	1	0.8
ROCE%	1.4	1.9
ROE%	1	1.2

Valuation & price assessment

Q.1 Stock return of SW Investments Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -6.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-6.3%	35.3%	28.8%	11.6%

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	52.66	103.79	33.72
Price to Book	0.95	0.74	0.94
Price to Sales	22.79	47.65	12.44
EV to EBITDA	39.03	95.01	9.97

Q.4 Valuation ratios of SW Investments Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.95% is higher than its historical median of 0.74%, 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?

SW Investments Ltd return on invested capital (ROIC) is 1.03% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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