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Check Before You Invest : Joindre Capital Services Ltd

BSE: 531861 NSE: ISIN: INE024B01010
  |   Sector:  BFSI   |   Industry:  Finance - Stock Broking

Snapshot

Q.1 Which industry/sub-sector does Joindre Capital Services Ltd belong to?
Joindre Capital Services Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.
Q.2 Is Joindre Capital Services Ltd a good quality company?
Joindre Capital Services Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Joindre Capital Services Ltd undervalued or overvalued?
Joindre Capital Services Ltd appears Somewhat 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 8.3 10.25
Price to Book 0.78 0.70
Price to Sales 1.71 1.52
EV to EBITDA -1.22 -2.62
Q.4 Is Joindre Capital Services Ltd a good buy now?
Joindre Capital Services 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 Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Joindre Capital Services Ltd?
Joindre Capital Services Ltd revenue growth is 16.5% for FY-2025, which is below its 5-year CAGR of 18.37%, indicating slower growth.

Q.2 Gross Profit margin of Joindre Capital Services Ltd?
Joindre Capital Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 29.1% for FY-2025, which is above its 5-year median of 22.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Joindre Capital Services Ltd?
Joindre Capital Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 31.38% for FY-2025, which is above its 5-year median of 23.6% indicating increasing margins.

Q.4 Net Profit Margin of Joindre Capital Services Ltd?
Joindre Capital Services Ltd Net Profit Margin is 20.61% for FY-2025, is above its 5-year median of 11.75%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 29.1 22.3
Operating Profit Margin (%) 31.38 23.6
Net Profit Margin (%) 20.61 11.75

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Joindre Capital Services Ltd?
Joindre Capital Services Ltd Return on Asset is 6.3%, which is above its 5-year historical median of 3.2%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Joindre Capital Services Ltd?
Joindre Capital Services Ltd Return on capital employed is 17.8% for FY-2025, which is above its 5-year historical median of 7.8%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Joindre Capital Services Ltd?
Joindre Capital Services Ltd Return on equity is 13.2% for FY-2025, which is above its 5-year historical median of 5.3%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Joindre Capital Services Ltd?
Joindre Capital Services Ltd Cash conversion cycle is -865 days, below its 5-year historical median of -709 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.3 0.29
ROE (%) 13.2 5.3
ROCE (%) 17.8 7.8
Cash Conversion Cycle -865 days -709 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Joindre Capital Services Ltd?
Joindre Capital Services Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.05, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Joindre Capital Services Ltd?
Joindre Capital Services Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Joindre Capital Services Ltd?

Q.1 Promoter shareholding and pledge status of Joindre Capital Services Ltd?
Promoters hold 63.78% of the Joindre Capital Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Joindre Capital Services Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Joindre Capital Services Ltd vs industry peers?
Joindre Capital Services Ltd revenue CAGR is 18.37%, compared to the industry median CAGR of 16.32%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 16.5 16.3
Gross Profit Growth (%) 31.3 24.7
Operating Profit Growth (%) 33.7 36.7
Net Profit Growth (%) 1,932.7 24.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.3 0.26
ROE (%) 13.2 7.6
ROCE (%) 17.8 10.2
Cash Conversion Cycle (days) -864.69 -82

Valuation & price assessment

Q.1 Stock return of Joindre Capital Services Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
16.8% 20.9% 15% 15.3%
Q.2 Valuation ratios of Joindre Capital Services Ltd vs historical?
The current P/E ratio of 8.3 is lower than its historical median of 10.25, indicating that the stock is trading below its historical average valuation.
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 8.3 10.25 19.96
Price to Book 0.78 0.70 1.64
Price to Sales 1.71 1.52 5.31
EV to EBITDA -1.22 -2.62 6.93

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