Check Before You Invest : Indergiri Finance Ltd

Snapshot

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

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

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

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

Q.3 Is Indergiri Finance Ltd undervalued or overvalued?

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

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

Indergiri 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 Indergiri Finance Ltd?

Indergiri Finance Ltd Operating Income growth is 182.28% for FY-2025, which is above its 5-year CAGR of 40.32%, indicating faster growth.

Q.2 Return on Assets of Indergiri Finance Ltd?

Indergiri Finance Ltd Return on Asset is -11%, which is below its 5-year historical median of -3%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	-70.63	-40.93
PPOP%	-98.11	-40
RoA%	-11	-3

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

Indergiri Finance Ltd Return on Equity is -44.4% for FY-2025, which is below its 5-year historical median of -3%, indicating the business is making worse use of its shareholders capital.

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

Indergiri Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -98.11% for FY-2025, which is below its 5-year median(-40%), indicating decreasing margins.

Q.5 Net Profit Margin of Indergiri Finance Ltd?

Indergiri 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 -70.63% for FY-2025, which is below its 5-year median( -40.93%), indicating decreasing margins.

Q.6 Total Asset growth of Indergiri Finance Ltd?

Indergiri Finance Ltd Total Asset growth is 140.67% for FY-2025, which is above its 5-year CAGR of 31.03%, indicating faster growth.

Ownership & governance

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

Promoters hold 60.22% of the Indergiri Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Indergiri Finance Ltd AUM CAGR is 31.03%, compared to the 5-year industry median CAGR of 9.9%, indicating faster growth and gaining its market share.

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

Indergiri Finance Ltd profit metrics are below the industry median level of 7.31%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	-70.63	15.95
PPOP%	-98.11	4.54
RoA%	-11	1.45

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

Indergiri Finance Ltd ROCE (0.7) is below the industry median of (4.4); while the current ROE (-3) 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%	-70.63	15.95
PPOP%	-98.11	4.54
RoA%	-11	1.45
ROCE%	-9.6	4.4
ROE%	-44.4	2.7

Valuation & price assessment

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

Over the last 9 years, the stock has delivered a CAGR of 15% 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%	52.5%	43.7%	15.8%

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	-	208.58	28.96
Price to Book	9.83	3.12	1.11
Price to Sales	8.57	8.13	9.10
EV to EBITDA	-7.86	-8.62	11.77

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

The current Price to book ratio (P/B) 9.83% is higher than its historical median of 3.12%, 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?

Indergiri Finance Ltd return on invested capital (ROIC) is -7.52% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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