Check Before You Invest : Arihant Capital Markets Ltd

Q: Which industry/sub-sector does Arihant Capital Markets Ltd belong to?

Arihant Capital Markets Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.

Q: Is Arihant Capital Markets Ltd a good quality company?

Arihant Capital Markets Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Arihant Capital Markets Ltd undervalued or overvalued?

Arihant Capital Markets Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 22.1, Historic Median: 14.74. Price to Book, Current: 1.97, Historic Median: 2.62. Price to Sales, Current: 4.13, Historic Median: 3.92. EV to EBITDA, Current: 8.02, Historic Median: 7.10

Q: Is Arihant Capital Markets Ltd a good buy now?

Arihant Capital Markets 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

Q: Revenue growth of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd revenue growth is 5.4% for FY-2025, which is below its 5-year CAGR of 24.87%, indicating slower growth.

Q: Gross Profit margin of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Gross profit margin which is the profit after deduction of direct costs, is 29% for FY-2025, which is below its 5-year median of 38.9%, indicating decreasing margins.

Q: Operating Profit Margin of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 41.87% for FY-2025, which is below its 5-year median of 48.79% indicating decreasing margins.

Q: Net Profit Margin of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Net Profit Margin is 21.95% for FY-2025, is below its 5-year median of 28.76%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 29, Historic Median: 38.9. Operating Profit Margin (%), Current: 41.87, Historic Median: 48.79. Net Profit Margin (%), Current: 21.95, Historic Median: 28.76

Q: Return on Asset of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Return on Asset is 7.1%, which is below its 5-year historical median of 9.5%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Return on capital employed is 22.5% for FY-2025, which is below its 5-year historical median of 26.4%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Arihant Capital Markets Ltd

Snapshot

Q.1 Which industry/sub-sector does Arihant Capital Markets Ltd belong to?

Arihant Capital Markets Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.

Q.2 Is Arihant Capital Markets Ltd a good quality company?

Arihant Capital Markets Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Arihant Capital Markets Ltd undervalued or overvalued?

Arihant Capital Markets Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	22.1	14.74
Price to Book	1.97	2.62
Price to Sales	4.13	3.92
EV to EBITDA	8.02	7.10

Q.4 Is Arihant Capital Markets Ltd a good buy now?

Arihant Capital Markets 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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd revenue growth is 5.4% for FY-2025, which is below its 5-year CAGR of 24.87%, indicating slower growth.

Q.2 Gross Profit margin of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Gross profit margin which is the profit after deduction of direct costs, is 29% for FY-2025, which is below its 5-year median of 38.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 41.87% for FY-2025, which is below its 5-year median of 48.79% indicating decreasing margins.

Q.4 Net Profit Margin of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Net Profit Margin is 21.95% for FY-2025, is below its 5-year median of 28.76%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	29	38.9
Operating Profit Margin (%)	41.87	48.79
Net Profit Margin (%)	21.95	28.76

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Return on Asset is 7.1%, which is below its 5-year historical median of 9.5%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Return on capital employed is 22.5% for FY-2025, which is below its 5-year historical median of 26.4%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Return on equity is 16.7% for FY-2025, which is below its 5-year historical median of 24.7%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Cash conversion cycle is -655 days, below its 5-year historical median of -585 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.32	0.31
ROE (%)	16.7	24.7
ROCE (%)	22.5	26.4
Cash Conversion Cycle	-655 days	-585 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Debt-to-Equity ratio is 0.24, which is above the industry average of 0.05, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Arihant Capital Markets Ltd?

Arihant Capital Markets Ltd Debt to cash flow from operations is 2.98, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Arihant Capital Markets Ltd?

Q.1 Promoter shareholding and pledge status of Arihant Capital Markets Ltd?

Promoters hold 67.67% of the Arihant Capital Markets Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Arihant Capital Markets Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Arihant Capital Markets Ltd vs industry peers?

Arihant Capital Markets Ltd revenue CAGR is 24.87%, compared to the industry median CAGR of 16.32%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	5.4	16.3
Gross Profit Growth (%)	-21.4	24.7
Operating Profit Growth (%)	-11.7	36.7
Net Profit Growth (%)	-19.7	24.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.32	0.26
ROE (%)	16.7	7.6
ROCE (%)	22.5	10.2
Cash Conversion Cycle (days)	-655.29	-82

Valuation & price assessment

Q.1 Stock return of Arihant Capital Markets Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 28% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	28%	35.6%	24.4%	18.8%

Q.2 Valuation ratios of Arihant Capital Markets Ltd vs historical?

The current P/E ratio of 22.1 is higher than its historical median of 14.74, indicating that the stock is trading above its historical average valuation.

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	22.1	14.74	19.96
Price to Book	1.97	2.62	1.64
Price to Sales	4.13	3.92	5.31
EV to EBITDA	8.02	7.10	6.93

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Check Before You Invest : Arihant Capital Markets Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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