Check Before You Invest : Golechha Global Finance Ltd

Snapshot

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

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

Q.2 Is Golechha Global Finance Ltd a good quality company?

Golechha Global Finance Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Golechha Global Finance Ltd undervalued or overvalued?

Golechha Global Finance Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Golechha Global Finance Ltd a good buy now?

Golechha Global Finance 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 Golechha Global Finance Ltd?

Golechha Global Finance Ltd Operating Income growth is 63.82% for FY-2025, which is below its 5-year CAGR of 97.6%, indicating slower growth.

Q.2 Return on Assets of Golechha Global Finance Ltd?

Golechha Global Finance Ltd Return on Asset is -7%, which is below its 5-year historical median of 3.3%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	-2	8.46
PPOP%	-132.79	-132.79
RoA%	-7	3.3

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

Golechha Global Finance Ltd Return on Equity is -6.8% for FY-2025, which is below its 5-year historical median of 3.4%, indicating the business is making worse use of its shareholders capital.

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

Golechha Global Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -132.79% for FY-2025, which is in line with its 5-year median(-132.79%), indicating stable margins.

Q.5 Net Profit Margin of Golechha Global Finance Ltd?

Golechha Global 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 -2% for FY-2025, which is below its 5-year median( 8.46%), indicating decreasing margins.

Q.6 Total Asset growth of Golechha Global Finance Ltd?

Golechha Global Finance Ltd Total Asset growth is -7.23% for FY-2025, which is below its 5-year CAGR of -2.81%, indicating slower growth.

Ownership & governance

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

Promoters hold 51.76% of the Golechha Global Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Golechha Global Finance Ltd AUM CAGR is -2.81%, 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 Golechha Global Finance Ltd vs industry peers

Golechha Global Finance 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%	-2	15.95
PPOP%	-132.79	4.54
RoA%	-7	1.45

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

Golechha Global Finance Ltd ROCE (4.6) is above the industry median of (4.4); while the current ROE (3.4) 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%	-2	15.95
PPOP%	-132.79	4.54
RoA%	-7	1.45
ROCE%	-7.3	4.4
ROE%	-6.8	2.7

Valuation & price assessment

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

Over the last 9 years, the stock has delivered a CAGR of 10.9% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	10.9%	45.2%	16.3%	32.1%

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	-	11.18	28.96
Price to Book	2.18	1.35	1.11
Price to Sales	8.38	29.06	9.10
EV to EBITDA	-9.48	6.59	11.77

Q.4 Valuation ratios of Golechha Global Finance Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 2.18% is higher than its historical median of 1.35%, 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?

Golechha Global Finance Ltd return on invested capital (ROIC) is -6.84% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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