Check Before You Invest : CSL Finance Ltd

Q: Which industry/sub-sector does CSL Finance Ltd belong to?

CSL Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q: Is CSL Finance Ltd a good quality company?

CSL Finance Ltd is a average quality company, based on a somewhat consistent 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: Is CSL Finance Ltd undervalued or overvalued?

CSL Finance Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than 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: 6.26, Historic Median: 11.39. Price to Book, Current: 0.89, Historic Median: 1.39. Price to Sales, Current: 2.25, Historic Median: 4.90. EV to EBITDA, Current: 6.62, Historic Median: 8.40

Q: Is CSL Finance Ltd a good buy now?

CSL Finance 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: Total Income growth of CSL Finance Ltd?

CSL Finance Ltd Operating Income growth is 29.83% for FY-2025, which is in line with its 5-year CAGR of 28.72%, indicating stable growth.

Q: Return on Assets of CSL Finance Ltd?

CSL Finance Ltd Return on Asset is 6.5%, which is below its 5-year historical median of 7.2%, indicating deteriorated earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 33.52, Historic Median: 38.92. PPOP (%), Current: 19.57, Historic Median: 19.57. RoA (%), Current: 6.5, Historic Median: 7.2

Q: Return on Equity (ROE) of CSL Finance Ltd?

CSL Finance Ltd Return on Equity is 14.2% for FY-2025, which is above its 5-year historical median of 13.4%, indicating the business is making better use of its shareholders capital.

Q: Pre-provisioning operating profit margin of CSL Finance Ltd?

CSL Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 19.57% for FY-2025, which is in line with its 5-year median(19.57%), indicating stable margins.

Q: Net Profit Margin of CSL Finance Ltd?

CSL Finance 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 33.52% for FY-2025, which is below its 5-year median( 38.92%), indicating decreasing margins.

Q: Does its ROIC exceed its WACC?

CSL Finance Ltd return on invested capital (ROIC) is 10.62% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check Before You Invest : CSL Finance Ltd

BSE: 530067 NSE: CSLFINANCE ISIN: INE718F01018

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does CSL Finance Ltd belong to?

CSL Finance Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is CSL Finance Ltd a good quality company?

CSL Finance Ltd is a average quality company, based on a somewhat consistent 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 CSL Finance Ltd undervalued or overvalued?

CSL Finance Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than 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	6.26	11.39
Price to Book	0.89	1.39
Price to Sales	2.25	4.90
EV to EBITDA	6.62	8.40

Q.4 Is CSL Finance Ltd a good buy now?

CSL Finance 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 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 CSL Finance Ltd?

CSL Finance Ltd Operating Income growth is 29.83% for FY-2025, which is in line with its 5-year CAGR of 28.72%, indicating stable growth.

Q.2 Return on Assets of CSL Finance Ltd?

CSL Finance Ltd Return on Asset is 6.5%, which is below its 5-year historical median of 7.2%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	33.52	38.92
PPOP (%)	19.57	19.57
RoA (%)	6.5	7.2

Q.3 Return on Equity (ROE) of CSL Finance Ltd?

CSL Finance Ltd Return on Equity is 14.2% for FY-2025, which is above its 5-year historical median of 13.4%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of CSL Finance Ltd?

CSL Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 19.57% for FY-2025, which is in line with its 5-year median(19.57%), indicating stable margins.

Q.5 Net Profit Margin of CSL Finance Ltd?

CSL Finance 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 33.52% for FY-2025, which is below its 5-year median( 38.92%), indicating decreasing margins.

Q.6 Does its ROIC exceed its WACC?

CSL Finance Ltd return on invested capital (ROIC) is 10.62% for FY-2025, 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.7 Total Asset growth of CSL Finance Ltd?

CSL Finance Ltd Total Asset growth is 26.42% for FY-2025, which is below its 5-year CAGR of 30.32%, indicating slower growth.

Ownership & governance

D: Promoter shareholding and pledge status of CSL Finance Ltd?

Q.1 Promoter shareholding and pledge status of CSL Finance Ltd?

Promoters hold 47.66% of the CSL Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does CSL Finance Ltd performance compare with that of its Peers?

Q.1 AUM Growth of CSL Finance Ltd vs Industry Peers?

CSL Finance Ltd AUM CAGR is 30.32%, compared to the 5-year industry median CAGR of 9.71%, indicating faster growth and gaining its market share.

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

CSL Finance Ltd profit metrics are above the industry median level of 4.76%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	33.52	12.87
PPOP (%)	19.57	-
RoA (%)	6.5	1.4

Q.3 Operating efficiency of CSL Finance Ltd vs industry peers?

CSL Finance Ltd ROCE (13.9) is above the industry median of (4.15); while the current ROE (13.4) are above than the 5-year average Industry ROE (2.3). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	33.52	12.87
PPOP (%)	19.57	-
RoA (%)	6.5	1.4
ROCE (%)	14.6	4.15
ROE (%)	14.2	2.3

Valuation & price assessment

Q.1 Stock return of CSL Finance Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 25.1% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	25.1%	24.4%	2.6%	-15.9%

Q.2 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	6.26	11.39	29.12
Price to Book	0.89	1.39	1.11
Price to Sales	2.25	4.90	9.10
EV to EBITDA	6.62	8.40	11.77

Q.3 Valuation ratios of CSL Finance Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 0.89 is lower than its historical median of 1.39, indicating that the stock is trading below its historical average valuation.

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Check Before You Invest : CSL Finance Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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