Check Before You Invest : BFL Asset Finvest Ltd

Snapshot

Q.1 Which industry/sub-sector does BFL Asset Finvest Ltd belong to?

BFL Asset Finvest Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is BFL Asset Finvest Ltd a good quality company?

BFL Asset Finvest Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is BFL Asset Finvest Ltd undervalued or overvalued?

BFL Asset Finvest Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is BFL Asset Finvest Ltd a good buy now?

BFL Asset Finvest 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 BFL Asset Finvest Ltd?

BFL Asset Finvest Ltd Operating Income growth is -23.31% for FY-2025, which is below its 5-year CAGR of 68.01%, indicating slower growth.

Q.2 Return on Assets of BFL Asset Finvest Ltd?

BFL Asset Finvest Ltd Return on Asset is 6.4%, which is above its 5-year historical median of 4.7%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	5.88	8.39
PPOP%	-51.59	-51.59
RoA%	6.4	4.7

Q.3 Return on Equity (ROE) of BFL Asset Finvest Ltd?

BFL Asset Finvest Ltd Return on Equity is 8.1% for FY-2025, which is above its 5-year historical median of 6%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of BFL Asset Finvest Ltd?

BFL Asset Finvest Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -51.59% for FY-2025, which is in line with its 5-year median(-51.59%), indicating stable margins.

Q.5 Net Profit Margin of BFL Asset Finvest Ltd?

BFL Asset Finvest 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 5.88% for FY-2025, which is below its 5-year median( 8.39%), indicating decreasing margins.

Q.6 Total Asset growth of BFL Asset Finvest Ltd?

BFL Asset Finvest Ltd Total Asset growth is -1.88% for FY-2025, which is below its 5-year CAGR of -0.08%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of BFL Asset Finvest Ltd?

Promoters hold 27.06% of the BFL Asset Finvest Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of BFL Asset Finvest Ltd vs Industry Peers?

BFL Asset Finvest Ltd AUM CAGR is -0.08%, 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 BFL Asset Finvest Ltd vs industry peers

BFL Asset Finvest Ltd profit metrics are in line with the industry median level of 7.31%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	5.88	15.95
PPOP%	-51.59	4.54
RoA%	6.4	1.45

Q.3 Operating efficiency of BFL Asset Finvest Ltd vs industry peers?

BFL Asset Finvest Ltd ROCE (8.8) is above the industry median of (4.4); while the current ROE (6) 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%	5.88	15.95
PPOP%	-51.59	4.54
RoA%	6.4	1.45
ROCE%	9.4	4.4
ROE%	8.1	2.7

Valuation & price assessment

Q.1 Stock return of BFL Asset Finvest Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -5.6% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-5.6%	-36.9%	-17.8%	-23.9%

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	-	10.58	28.96
Price to Book	0.5	1.17	1.11
Price to Sales	0.38	20.86	9.10
EV to EBITDA	20.71	10.47	11.77

Q.4 Valuation ratios of BFL Asset Finvest Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.5% is lower than its historical median of 1.17%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

BFL Asset Finvest Ltd return on invested capital (ROIC) is 7.02% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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