Check Before You Invest : Hasti Finance Ltd

Snapshot

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

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

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

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

Q.3 Is Hasti Finance Ltd undervalued or overvalued?

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

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

Hasti 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 Hasti Finance Ltd?

Hasti Finance Ltd Operating Income growth is 0% for FY-2025, which is above its 5-year CAGR of -23.61%, indicating faster growth.

Q.2 Return on Assets of Hasti Finance Ltd?

Hasti Finance Ltd Return on Asset is -52.4%, which is below its 5-year historical median of -1.7%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	-1811.19	-34.82
PPOP%	100	-27.27
RoA%	-52.4	-1.7

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

Hasti Finance Ltd Return on Equity is -50.6% for FY-2025, which is below its 5-year historical median of -1.6%, indicating the business is making worse use of its shareholders capital.

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

Hasti Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 100% for FY-2025, which is above its 5-year median(-27.27%), indicating increasing margins.

Q.5 Net Profit Margin of Hasti Finance Ltd?

Hasti 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 -1811.19% for FY-2025, which is below its 5-year median( -34.82%), indicating decreasing margins.

Q.6 Total Asset growth of Hasti Finance Ltd?

Hasti Finance Ltd Total Asset growth is -42.35% for FY-2025, which is below its 5-year CAGR of -10.64%, indicating slower growth.

Ownership & governance

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

Promoters hold 45.65% of the Hasti Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Hasti Finance Ltd AUM CAGR is -10.64%, 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 Hasti Finance Ltd vs industry peers

Hasti 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%	-1811.19	15.95
PPOP%	100	4.54
RoA%	-52.4	1.45

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

Hasti Finance Ltd ROCE (-2.2) is below the industry median of (4.4); while the current ROE (-1.6) are below than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	-1811.19	15.95
PPOP%	100	4.54
RoA%	-52.4	1.45
ROCE%	-50.6	4.4
ROE%	-50.6	2.7

Valuation & price assessment

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

Over the last 9 years, the stock has delivered a CAGR of -5.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-5.8%	13.7%	18.7%	41.3%

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	-	60.04	28.96
Price to Book	1.18	0.36	1.11
Price to Sales	33.23	12.34	9.10
EV to EBITDA	-0.69	-0.90	11.77

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

The current Price to book ratio (P/B) 1.18% is higher than its historical median of 0.36%, 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?

Hasti Finance Ltd return on invested capital (ROIC) is -50.58% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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