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MoneyWorks4Me

Check Before You Invest : India Lease Development Ltd

BSE: 500202 NSE: INDIALEASE ISIN: INE333C01013
  |   Sector:  BFSI   |   Industry:  Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does India Lease Development Ltd belong to?
India Lease Development Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.
Q.2 Is India Lease Development Ltd a good quality company?
India Lease Development Ltd 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 India Lease Development Ltd undervalued or overvalued?
India Lease Development Ltd appears Undervalued, as its key valuation ratios are lower 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 0-year
Historic Median
Price to Earnings - -
Price to Book - -
Price to Sales - -
EV to EBITDA - -
Q.4 Is India Lease Development Ltd a good buy now?
India Lease Development 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

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 India Lease Development Ltd?
India Lease Development Ltd Operating Income growth is % for FY-, which is in line with its --year CAGR of N/A%, indicating stable growth.

Q.2 Does its ROIC exceed its WACC?
India Lease Development Ltd return on invested capital (ROIC) is % for FY-, 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.3 Total Asset growth of India Lease Development Ltd?
India Lease Development Ltd Total Asset growth is N/A% for FY-, which is below its 0-year CAGR of 22.22%, indicating slower growth.

Ownership & governance

D: Promoter shareholding and pledge status of India Lease Development Ltd?

Q.1 Promoter shareholding and pledge status of India Lease Development Ltd?
Promoters hold 71.66% of the India Lease Development Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does India Lease Development Ltd performance compare with that of its Peers?

Q.1 AUM Growth of India Lease Development Ltd vs Industry Peers?
India Lease Development Ltd AUM CAGR is 12.69%, compared to the 0-year industry median CAGR of %, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of India Lease Development Ltd vs industry peers
India Lease Development Ltd profit metrics are in line with the industry median level of 0%, indicating similar profitability compared to peers.
Profit Metrics
Current Level 0-year
Industry Median
NPM (%) 3.51 -
PPOP (%) 15.74 -
RoA (%) 4.61 -

Q.3 Operating efficiency of India Lease Development Ltd vs industry peers?
India Lease Development Ltd ROCE () is in line with the industry median of (); while the current ROE () are in line with than the 5-year average Industry ROE (). This shows that the business is positioned in the middle quartile of the industry.
Operating Efficiency
Current Level 0-year
Industry Median
NPM (%) 3.51 -
PPOP (%) 15.74 -
RoA (%) 4.61 -
ROCE (%) - -
ROE (%) 11.28 -

Valuation & price assessment

Q.1 Stock return of India Lease Development Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of -2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-2% -1.8% -6.2% -39.7%
Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - - 32.78
Price to Book - - 2.40
Price to Sales - - 1.54
EV to EBITDA - - 14.63
Q.3 Valuation ratios of India Lease Development Ltd 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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