MoneyWorks4Me

Check Before You Invest : Aryaman Capital Markets Ltd

BSE: 538716 NSE: ISIN: INE229R01011
  |   Sector:  BFSI   |   Industry:  Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Aryaman Capital Markets Ltd belong to?
Aryaman Capital Markets Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.
Q.2 Is Aryaman Capital Markets Ltd a good quality company?
Aryaman Capital Markets Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Aryaman Capital Markets Ltd undervalued or overvalued?
Aryaman 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 0-year
Historic Median
Price to Earnings - 136.78
Price to Book - 18.35
Price to Sales - 14.26
EV to EBITDA - 63.87
Q.4 Is Aryaman Capital Markets Ltd a good buy now?
Aryaman Capital Markets 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

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

  • How has it performed on generating Profits?

    By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.

  • How efficiently has it grown and managed operations?

    By checking its Total Asset growth.

  • How strong is its Capital position and Asset Quality?

    By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Aryaman Capital Markets Ltd?
Aryaman Capital Markets Ltd Operating Income growth is % for FY-, which is in line with its --year CAGR of N/A%, indicating stable growth.

Q.2 Does its ROIC exceed its WACC?
Aryaman Capital Markets Ltd return on invested capital (ROIC) is % for FY-, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.3 Total Asset growth of Aryaman Capital Markets Ltd?
Aryaman Capital Markets Ltd Total Asset growth is 12.71% for FY-, which is below its 0-year CAGR of 19.52%, indicating slower growth.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Aryaman Capital Markets Ltd?
Promoters hold 74.28% of the Aryaman Capital Markets Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 AUM Growth of Aryaman Capital Markets Ltd vs Industry Peers?
Aryaman Capital Markets Ltd AUM CAGR is %, compared to the 0-year industry median CAGR of %, indicating stable growth and maintaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Aryaman Capital Markets Ltd vs industry peers
Aryaman Capital Markets Ltd profit metrics are in line with the industry median level of 0%, indicating similar profitability compared to peers.
Profit Metrics
Current Level 0-year
Industry Median
NPM (%) - -
PPOP (%) - -
RoA (%) - -

Q.3 Operating efficiency of Aryaman Capital Markets Ltd vs industry peers?
Aryaman Capital Markets Ltd ROCE () is below the industry median of (18.03); while the current ROE (20.4) are above than the 5-year average Industry ROE (). This shows that the business is positioned in the middle quartile of the industry.
Operating Efficiency
Current Level 0-year
Industry Median
NPM (%) - -
PPOP (%) - -
RoA (%) - -
ROCE (%) - 18.03
ROE (%) - -

Valuation & price assessment

Q.1 Stock return of Aryaman Capital Markets Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 37.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
37.3% 59.3% 91.2% -22.4%
Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - 136.78 -
Price to Book - 18.35 -
Price to Sales - 14.26 -
EV to EBITDA - 63.87 -
Q.3 Valuation ratios of Aryaman Capital Markets Ltd vs historical and industry averages?
The current Price-to-Book (P/B) ratio of 0 is lower than its historical median of 18.35, indicating that the stock is trading below its historical average valuation.

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