Check Before You Invest : Swadha Nature Ltd

BSE: 531039 NSE: ISIN: INE0P4R01017

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Swadha Nature Ltd belong to?

Swadha Nature Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Swadha Nature Ltd a good quality company?

Swadha Nature Ltd is a quality company, based on a 4-year financial track record.

Q.3 Is Swadha Nature Ltd undervalued or overvalued?

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

Q.4 Is Swadha Nature Ltd a good buy now?

Swadha Nature 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 Swadha Nature Ltd?

Swadha Nature Ltd Operating Income growth is -88.89% for FY-2026, which is below its 3-year CAGR of -50%, indicating slower growth.

Q.2 Return on Assets of Swadha Nature Ltd?

Swadha Nature Ltd Return on Asset is -16.3%, which is below its 3-year historical median of -2.3%, indicating deteriorated earnings on assets.

	Current Level	3-year Historic Median
NPM%	-1406.31	-29.44
PPOP%	-	-100
RoA%	-16.3	-2.3

Q.3 Return on Equity (ROE) of Swadha Nature Ltd?

Swadha Nature Ltd Return on Equity is -21.3% for FY-2026, which is below its 3-year historical median of -4%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Swadha Nature Ltd?

Swadha Nature Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -% for FY-2026, which is above its 3-year median(-100%), indicating increasing margins.

Q.5 Net Profit Margin of Swadha Nature Ltd?

Swadha Nature 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 -1406.31% for FY-2026, which is below its 3-year median( -29.44%), indicating decreasing margins.

Q.6 Total Asset growth of Swadha Nature Ltd?

Swadha Nature Ltd Total Asset growth is 59% for FY-2026, which is above its 3-year CAGR of -19.18%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Swadha Nature Ltd?

Promoters hold 26.46% of the Swadha Nature Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Swadha Nature Ltd vs Industry Peers?

Swadha Nature Ltd AUM CAGR is -19.18%, compared to the 3-year industry median CAGR of 9.18%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Swadha Nature Ltd vs industry peers

Swadha Nature Ltd profit metrics are in line with the industry median level of 3.6%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	3-year Industry Median
NPM%	-1406.31	14.65
PPOP%	-	-4.96
RoA%	-16.3	1.1

Q.3 Operating efficiency of Swadha Nature Ltd vs industry peers?

Swadha Nature Ltd ROCE (-3.4) is below the industry median of (2.1); while the current ROE (-4) are below than the 5-year average Industry ROE (1.9). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	3-year Industry Median
NPM%	-1406.31	14.65
PPOP%	-	-4.96
RoA%	-16.3	1.1
ROCE%	-16.3	2.1
ROE%	-21.3	1.9

Valuation & price assessment

Q.1 Stock return of Swadha Nature Ltd over the last decade?

Over the last 1 years, the stock has delivered a CAGR of -15.19% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-15.2%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	-	260.75	33.22
Price to Book	7.63	7.25	1.01
Price to Sales	449.49	37.28	15.19
EV to EBITDA	-29.82	82.34	10.00

Q.4 Valuation ratios of Swadha Nature Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 7.63% is higher than its historical median of 7.25%, 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?

Swadha Nature Ltd return on invested capital (ROIC) is -16.33% for FY-2026, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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