Check Before You Invest : Kalyani Investment Company Ltd

BSE: 533302 NSE: KICL ISIN: INE029L01018

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Kalyani Investment Company Ltd belong to?

Kalyani Investment Company Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Kalyani Investment Company Ltd a good quality company?

Kalyani Investment Company Ltd is a weak quality company, based on a inconsistent 9-year financial track record.

Q.3 Is Kalyani Investment Company Ltd undervalued or overvalued?

Kalyani Investment Company Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Kalyani Investment Company Ltd a good buy now?

Kalyani Investment Company Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Kalyani Investment Company Ltd?

Kalyani Investment Company Ltd Operating Income growth is 15.97% for FY-2025, which is above its 5-year CAGR of 12.03%, indicating faster growth.

Q.2 Return on Assets of Kalyani Investment Company Ltd?

Kalyani Investment Company Ltd Return on Asset is 0.6%, which is in line with its 5-year historical median of 0.6%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	64.82	66.43
PPOP%	4.05	32.14
RoA%	0.6	0.6

Q.3 Return on Equity (ROE) of Kalyani Investment Company Ltd?

Kalyani Investment Company Ltd Return on Equity is 0.7% for FY-2025, which is in line with its 5-year historical median of 0.7%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Kalyani Investment Company Ltd?

Kalyani Investment Company Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 4.05% for FY-2025, which is below its 5-year median(32.14%), indicating decreasing margins.

Q.5 Net Profit Margin of Kalyani Investment Company Ltd?

Kalyani Investment Company 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 64.82% for FY-2025, which is below its 5-year median( 66.43%), indicating decreasing margins.

Q.6 Total Asset growth of Kalyani Investment Company Ltd?

Kalyani Investment Company Ltd Total Asset growth is 5.95% for FY-2025, which is below its 5-year CAGR of 36.5%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Kalyani Investment Company Ltd?

Promoters hold 74.97% of the Kalyani Investment Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Kalyani Investment Company Ltd vs Industry Peers?

Kalyani Investment Company Ltd AUM CAGR is 36.5%, compared to the 5-year industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Kalyani Investment Company Ltd vs industry peers

Kalyani Investment Company Ltd profit metrics are in line with the industry median level of -0.88%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	64.82	9.95
PPOP%	4.05	-13.4
RoA%	0.6	0.8

Q.3 Operating efficiency of Kalyani Investment Company Ltd vs industry peers?

Kalyani Investment Company Ltd ROCE (0.9) is below the industry median of (1.9); while the current ROE (0.7) are below than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	64.82	9.95
PPOP%	4.05	-13.4
RoA%	0.6	0.8
ROCE%	0.9	1.9
ROE%	0.7	1.2

Valuation & price assessment

Q.1 Stock return of Kalyani Investment Company Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 11.3% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	11.3%	24.8%	39.8%	8.2%

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	40.12	37.34	33.72
Price to Book	0.24	0.20	0.94
Price to Sales	25	25.40	12.44
EV to EBITDA	25.65	24.82	9.97

Q.4 Valuation ratios of Kalyani Investment Company Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.24% is higher than its historical median of 0.20%, 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?

Kalyani Investment Company Ltd return on invested capital (ROIC) is 0.65% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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