Check Before You Invest : Gujarat State Financial Corporation Ltd

Snapshot

Q.1 Which industry/sub-sector does Gujarat State Financial Corporation Ltd belong to?

Gujarat State Financial Corporation Ltd belongs to the BFSI sector, operating specifically within the Finance Term Lending segment.

Q.2 Is Gujarat State Financial Corporation Ltd a good quality company?

Gujarat State Financial Corporation Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Gujarat State Financial Corporation Ltd undervalued or overvalued?

Gujarat State Financial Corporation Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Gujarat State Financial Corporation Ltd a good buy now?

Gujarat State Financial Corporation 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 Gujarat State Financial Corporation Ltd?

Gujarat State Financial Corporation Ltd Operating Income growth is -15.46% for FY-2025, which is below its 5-year CAGR of -2.13%, indicating slower growth.

Q.2 Return on Assets of Gujarat State Financial Corporation Ltd?

Gujarat State Financial Corporation Ltd Return on Asset is -58.8%, which is above its 5-year historical median of -67.6%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	-730.12	-890.29
PPOP%	5.14	3.91
RoA%	-58.8	-67.6

Q.3 Pre-provisioning operating profit margin of Gujarat State Financial Corporation Ltd?

Gujarat State Financial Corporation Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 5.14% for FY-2025, which is above its 5-year median(3.91%), indicating increasing margins.

Q.4 Net Profit Margin of Gujarat State Financial Corporation Ltd?

Gujarat State Financial Corporation 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 -730.12% for FY-2025, which is above its 5-year median( -890.29%), indicating increasing margins.

Q.5 Total Asset growth of Gujarat State Financial Corporation Ltd?

Gujarat State Financial Corporation Ltd Total Asset growth is 6.69% for FY-2025, which is above its 5-year CAGR of 5.89%, indicating faster growth.

Q.6 Capital Adequacy ratio of Gujarat State Financial Corporation Ltd?

Gujarat State Financial Corporation Ltd Capital Adequacy ratio (CAR) is -768.95% for FY-2025, which is below the regulatory requirement of 15%, indicating adequate capital position.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Gujarat State Financial Corporation Ltd?

Promoters hold 83.95% of the Gujarat State Financial Corporation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Gujarat State Financial Corporation Ltd vs Industry Peers?

Gujarat State Financial Corporation Ltd AUM CAGR is 5.89%, compared to the 5-year industry median CAGR of 3.91%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Gujarat State Financial Corporation Ltd vs industry peers

Gujarat State Financial Corporation Ltd profit metrics are in line with the industry median level of 3.13%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	-730.12	4.47
PPOP%	5.14	3.91
RoA%	-58.8	1

Q.3 Operating efficiency of Gujarat State Financial Corporation Ltd vs industry peers?

Gujarat State Financial Corporation Ltd ROCE () is below the industry median of (9.28); while the current ROE (1.31) are below than the 5-year average Industry ROE (5.8). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	-730.12	4.47
PPOP%	5.14	3.91
RoA%	-58.8	1
ROCE%	-	9.28
ROE%	-	5.8

Valuation & price assessment

Q.1 Stock return of Gujarat State Financial Corporation Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 15.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	15.8%	26.4%	16.5%	-33.6%

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	-	-1.31	13.28
Price to Book	-0.03	-0.03	1.13
Price to Sales	246.32	72.25	4.77
EV to EBITDA	54.1	68.45	10.31

Q.4 Valuation ratios of Gujarat State Financial Corporation Ltdvs historical and industry averages?

The current Price to book ratio (P/B) -0.03% is similar than its historical median of -0.03%, indicating that at the current price the stock is fairly valued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Gujarat State Financial Corporation Ltd return on invested capital (ROIC) is 1.19% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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