Check Before You Invest : Team India Guaranty Ltd

BSE: 511559 NSE: TEAMGTY ISIN: INE289C01025

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Team India Guaranty Ltd belong to?

Team India Guaranty Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Team India Guaranty Ltd a good quality company?

Team India Guaranty Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Team India Guaranty Ltd undervalued or overvalued?

Team India Guaranty Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Team India Guaranty Ltd a good buy now?

Team India Guaranty 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 Team India Guaranty Ltd?

Team India Guaranty Ltd Operating Income growth is 8.95% for FY-2025, which is above its 5-year CAGR of 8.39%, indicating faster growth.

Q.2 Return on Assets of Team India Guaranty Ltd?

Team India Guaranty Ltd Return on Asset is 5%, which is above its 5-year historical median of 4%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	66.5	57.56
PPOP%	50	50
RoA%	5	4

Q.3 Return on Equity (ROE) of Team India Guaranty Ltd?

Team India Guaranty Ltd Return on Equity is 5% for FY-2025, which is above its 5-year historical median of 4%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Team India Guaranty Ltd?

Team India Guaranty Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 50% for FY-2025, which is in line with its 5-year median(50%), indicating stable margins.

Q.5 Net Profit Margin of Team India Guaranty Ltd?

Team India Guaranty 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 66.5% for FY-2025, which is above its 5-year median( 57.56%), indicating increasing margins.

Q.6 Total Asset growth of Team India Guaranty Ltd?

Team India Guaranty Ltd Total Asset growth is 6.52% for FY-2025, which is below its 5-year CAGR of 6.96%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Team India Guaranty Ltd?

Promoters hold 74.92% of the Team India Guaranty Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Team India Guaranty Ltd vs Industry Peers?

Team India Guaranty Ltd AUM CAGR is 6.96%, 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 Team India Guaranty Ltd vs industry peers

Team India Guaranty Ltd profit metrics are above the industry median level of 7.31%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	66.5	15.95
PPOP%	50	4.54
RoA%	5	1.45

Q.3 Operating efficiency of Team India Guaranty Ltd vs industry peers?

Team India Guaranty Ltd ROCE (5.3) is above the industry median of (4.4); while the current ROE (4) are above than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	66.5	15.95
PPOP%	50	4.54
RoA%	5	1.45
ROCE%	6	4.4
ROE%	5	2.7

Valuation & price assessment

Q.1 Stock return of Team India Guaranty Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 31.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	31.5%	37.8%	66.9%	49.3%

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	111.04	51.95	28.96
Price to Book	4.79	1.45	1.11
Price to Sales	50.37	25.26	9.10
EV to EBITDA	76.34	33.06	11.77

Q.4 Valuation ratios of Team India Guaranty Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 4.79% is higher than its historical median of 1.45%, 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?

Team India Guaranty Ltd return on invested capital (ROIC) is 5.04% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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