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INVESTMENT INSIGHTS

Check Before You Invest : Ekam Leasing & Finance Company Ltd

BSE: 530581 NSE: ISIN: INE906L01025
  |   Sector:  BFSI   |   Industry:  Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Ekam Leasing & Finance Company Ltd belong to?
Ekam Leasing & Finance Company Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.
Q.2 Is Ekam Leasing & Finance Company Ltd a good quality company?
Ekam Leasing & Finance Company Ltd is a quality company, based on a 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 Ekam Leasing & Finance Company Ltd undervalued or overvalued?
Ekam Leasing & Finance Company Ltd appears Overvalued, as its key valuation ratios are higher 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 - 9.72
Price to Book 3.04 1.27
Price to Sales 22.43 6.44
EV to EBITDA -8.32 11.20
Q.4 Is Ekam Leasing & Finance Company Ltd a good buy now?
Ekam Leasing & Finance Company 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 Ekam Leasing & Finance Company Ltd?
Ekam Leasing & Finance Company Ltd Operating Income growth is -47.85% for FY-2025, which is below its 5-year CAGR of -4.59%, indicating slower growth.

Q.2 Return on Assets of Ekam Leasing & Finance Company Ltd?
Ekam Leasing & Finance Company Ltd Return on Asset is -16.6%, which is below its 5-year historical median of 1.6%, indicating deteriorated earnings on assets.
Current Level 5-year
Historic Median
NPM (%) -332.28 16.91
PPOP (%) -138.24 7.69
RoA (%) -16.6 1.6

Q.3 Return on Equity (ROE) of Ekam Leasing & Finance Company Ltd?
Ekam Leasing & Finance Company Ltd Return on Equity is -39.9% for FY-2025, which is below its 5-year historical median of 3.1%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Ekam Leasing & Finance Company Ltd?
Ekam Leasing & Finance Company Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -138.24% for FY-2025, which is below its 5-year median(7.69%), indicating decreasing margins.

Q.5 Net Profit Margin of Ekam Leasing & Finance Company Ltd?
Ekam Leasing & Finance Company 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 -332.28% for FY-2025, which is below its 5-year median( 16.91%), indicating decreasing margins.

Q.6 Does its ROIC exceed its WACC?
Ekam Leasing & Finance Company Ltd return on invested capital (ROIC) is -12.29% 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 Ekam Leasing & Finance Company Ltd?
Ekam Leasing & Finance Company Ltd Total Asset growth is -8.32% for FY-2025, which is below its 5-year CAGR of 2.66%, indicating slower growth.

Ownership & governance

D: Promoter shareholding and pledge status of Ekam Leasing & Finance Company Ltd?

Q.1 Promoter shareholding and pledge status of Ekam Leasing & Finance Company Ltd?
Promoters hold 27.70% of the Ekam Leasing & Finance Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ekam Leasing & Finance Company Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Ekam Leasing & Finance Company Ltd vs Industry Peers?
Ekam Leasing & Finance Company Ltd AUM CAGR is 2.66%, compared to the 5-year industry median CAGR of 9.71%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Ekam Leasing & Finance Company Ltd vs industry peers
Ekam Leasing & Finance Company Ltd profit metrics are in line with the industry median level of 4.76%, indicating similar profitability compared to peers.
Profit Metrics
Current Level 5-year
Industry Median
NPM (%) -332.28 12.87
PPOP (%) -138.24 -
RoA (%) -16.6 1.4

Q.3 Operating efficiency of Ekam Leasing & Finance Company Ltd vs industry peers?
Ekam Leasing & Finance Company Ltd ROCE (6.2) is above the industry median of (4.15); while the current ROE (3.1) 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 (%) -332.28 12.87
PPOP (%) -138.24 -
RoA (%) -16.6 1.4
ROCE (%) -11.6 4.15
ROE (%) -39.9 2.3

Valuation & price assessment

Q.1 Stock return of Ekam Leasing & Finance Company Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 5.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR		 5.9% 14.4% 21.7% 20.5%
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 - 9.72 29.12
Price to Book 3.04 1.27 1.11
Price to Sales 22.43 6.44 9.10
EV to EBITDA -8.32 11.20 11.77
Q.3 Valuation ratios of Ekam Leasing & Finance Company Ltd vs historical and industry averages?
The current Price-to-Book (P/B) ratio of 3.04 is higher than its historical median of 1.27, indicating that the stock is trading above its historical average valuation.

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