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Check Before You Invest : IndiGrid Infrastructure Trust

BSE: 540565 NSE: INDIGRID ISIN: INE219X23014
  |   Sector:  BFSI   |   Industry:  Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does IndiGrid Infrastructure Trust belong to?
IndiGrid Infrastructure Trust belongs to the BFSI sector, operating specifically within the Finance - Investment segment.
Q.2 Is IndiGrid Infrastructure Trust a good quality company?
IndiGrid Infrastructure Trust 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 IndiGrid Infrastructure Trust undervalued or overvalued?
IndiGrid Infrastructure Trust 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 - -
Price to Book - -
Price to Sales - -
EV to EBITDA 7.22 6.92
Q.4 Is IndiGrid Infrastructure Trust a good buy now?
IndiGrid Infrastructure Trust 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 IndiGrid Infrastructure Trust?
IndiGrid Infrastructure Trust Operating Income growth is 3.43% for FY-2025, which is above its 5-year CAGR of NA%, indicating faster growth.

Q.2 Return on Assets of IndiGrid Infrastructure Trust?
IndiGrid Infrastructure Trust Return on Asset is 4.7%, which is in line with its 5-year historical median of 4.9%, indicating stable earnings on assets.
Current Level 5-year
Historic Median
NPM (%) 45.57 45.57
PPOP (%) - -
RoA (%) 4.7 4.9

Q.3 Return on Equity (ROE) of IndiGrid Infrastructure Trust?
IndiGrid Infrastructure Trust Return on Equity is 15.3% for FY-2025, which is in line with its 5-year historical median of 14.9%, indicating the business is making similar use of its shareholders capital.

Q.4 Net Profit Margin of IndiGrid Infrastructure Trust?
IndiGrid Infrastructure Trust Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 45.57% for FY-2025, which is in line with its 5-year median( 45.57%), indicating stable margins.

Q.5 Does its ROIC exceed its WACC?
IndiGrid Infrastructure Trust return on invested capital (ROIC) is 8.43% 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.6 Total Asset growth of IndiGrid Infrastructure Trust?
IndiGrid Infrastructure Trust Total Asset growth is 4.71% for FY-2025, which is below its 5-year CAGR of 11.1%, indicating slower growth.

Ownership & governance

D: Promoter shareholding and pledge status of IndiGrid Infrastructure Trust?

Q.1 Promoter shareholding and pledge status of IndiGrid Infrastructure Trust?
Promoters hold % of the IndiGrid Infrastructure Trust, with % of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does IndiGrid Infrastructure Trust performance compare with that of its Peers?

Q.1 AUM Growth of IndiGrid Infrastructure Trust vs Industry Peers?
IndiGrid Infrastructure Trust AUM CAGR is 11.1%, compared to the 5-year industry median CAGR of 9.27%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of IndiGrid Infrastructure Trust vs industry peers
IndiGrid Infrastructure Trust profit metrics are above the industry median level of -1.27%, indicating stronger profitability compared to peers.
Profit Metrics
Current Level 5-year
Industry Median
NPM (%) 45.57 3.12
PPOP (%) - -7.72
RoA (%) 4.7 0.8

Q.3 Operating efficiency of IndiGrid Infrastructure Trust vs industry peers?
IndiGrid Infrastructure Trust ROCE (9.9) is above the industry median of (1.8); while the current ROE (14.9) are above than the 5-year average Industry ROE (0.9). This shows that the business is positioned in the top quartile of the industry.
Operating Efficiency
Current Level 5-year
Industry Median
NPM (%) 45.57 3.12
PPOP (%) - -7.72
RoA (%) 4.7 0.8
ROCE (%) 10 1.8
ROE (%) 15.3 0.9

Valuation & price assessment

Q.1 Stock return of IndiGrid Infrastructure Trust over the last decade?
Over the last 5 years, the stock has delivered a CAGR of 5.29% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 5.3% 7.3% 16%
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 - - 33.75
Price to Book - - 0.95
Price to Sales - - 12.43
EV to EBITDA 7.22 6.92 10.00
Q.3 Valuation ratios of IndiGrid Infrastructure Trust vs historical and industry averages?
The current Price-to-Book (P/B) ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.

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