Check Before You Invest : Bridge Securities Ltd

BSE: 530249 NSE: ISIN: INE958C01025

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Bridge Securities Ltd belong to?

Bridge Securities Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Bridge Securities Ltd a good quality company?

Bridge Securities Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Bridge Securities Ltd undervalued or overvalued?

Bridge Securities Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Bridge Securities Ltd a good buy now?

Bridge Securities 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 Bridge Securities Ltd?

Bridge Securities Ltd Operating Income growth is 138.75% for FY-2025, which is above its 5-year CAGR of 4.13%, indicating faster growth.

Q.2 Return on Assets of Bridge Securities Ltd?

Bridge Securities Ltd Return on Asset is 35.2%, which is above its 5-year historical median of 33.3%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	66.7	58.42
PPOP%	158.82	-173.39
RoA%	35.2	33.3

Q.3 Return on Equity (ROE) of Bridge Securities Ltd?

Bridge Securities Ltd Return on Equity is 80.4% for FY-2025, which is above its 5-year historical median of 75%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Bridge Securities Ltd?

Bridge Securities Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 158.82% for FY-2025, which is above its 5-year median(-173.39%), indicating increasing margins.

Q.5 Net Profit Margin of Bridge Securities Ltd?

Bridge Securities 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 66.7% for FY-2025, which is above its 5-year median( 58.42%), indicating increasing margins.

Q.6 Total Asset growth of Bridge Securities Ltd?

Bridge Securities Ltd Total Asset growth is 93.12% for FY-2025, which is above its 5-year CAGR of 42.21%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Bridge Securities Ltd?

Promoters hold 0.00% of the Bridge Securities Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Bridge Securities Ltd vs Industry Peers?

Bridge Securities Ltd AUM CAGR is 42.21%, compared to the 5-year industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

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

Bridge Securities Ltd profit metrics are above the industry median level of -0.88%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	66.7	9.95
PPOP%	158.82	-13.4
RoA%	35.2	0.8

Q.3 Operating efficiency of Bridge Securities Ltd vs industry peers?

Bridge Securities Ltd ROCE (84.8) is above the industry median of (1.9); while the current ROE (75) are above than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	66.7	9.95
PPOP%	158.82	-13.4
RoA%	35.2	0.8
ROCE%	90.5	1.9
ROE%	80.4	1.2

Valuation & price assessment

Q.1 Stock return of Bridge Securities Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 33.5% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	33.5%	104.2%	177.3%	48.5%

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	38.37	24.58	33.72
Price to Book	8.92	8.16	0.94
Price to Sales	27.65	8.85	12.44
EV to EBITDA	27.71	10.18	9.97

Q.4 Valuation ratios of Bridge Securities Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 8.92% is higher than its historical median of 8.16%, 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?

Bridge Securities Ltd return on invested capital (ROIC) is 65.38% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

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