Check Before You Invest : Kinetic Trust Ltd

Q: Which industry/sub-sector does Kinetic Trust Ltd belong to?

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

Q: Is Kinetic Trust Ltd a good quality company?

Kinetic Trust 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: Is Kinetic Trust Ltd undervalued or overvalued?

Kinetic Trust Ltd 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. Price to Earnings, Current: 83.43, Historic Median: 39.69. Price to Book, Current: 2.94, Historic Median: 1.37. Price to Sales, Current: 7, Historic Median: 6.15. EV to EBITDA, Current: 27.06, Historic Median: 24.74

Q: Is Kinetic Trust Ltd a good buy now?

Kinetic Trust 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

Q: Total Income growth of Kinetic Trust Ltd?

Kinetic Trust Ltd Operating Income growth is 144.72% for FY-2025, which is above its 5-year CAGR of 54.79%, indicating faster growth.

Q: Return on Assets of Kinetic Trust Ltd?

Kinetic Trust Ltd Return on Asset is 1%, which is above its 5-year historical median of 0.8%, indicating improved earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 15.4, Historic Median: 15.4. PPOP (%), Current: 35, Historic Median: -25.93. RoA (%), Current: 1, Historic Median: 0.8

Q: Return on Equity (ROE) of Kinetic Trust Ltd?

Kinetic Trust Ltd Return on Equity is 4.6% for FY-2025, which is above its 5-year historical median of 1.1%, indicating the business is making better use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Kinetic Trust Ltd?

Kinetic Trust Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 35% for FY-2025, which is above its 5-year median(-25.93%), indicating increasing margins.

Q: Net Profit Margin of Kinetic Trust Ltd?

Kinetic Trust 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 15.4% for FY-2025, which is in line with its 5-year median( 15.4%), indicating stable margins.

Q: Does its ROIC exceed its WACC?

Kinetic Trust Ltd return on invested capital (ROIC) is 4.02% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Snapshot

Q.1 Which industry/sub-sector does Kinetic Trust Ltd belong to?

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

Q.2 Is Kinetic Trust Ltd a good quality company?

Kinetic Trust 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 Kinetic Trust Ltd undervalued or overvalued?

Kinetic Trust Ltd 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	83.43	39.69
Price to Book	2.94	1.37
Price to Sales	7	6.15
EV to EBITDA	27.06	24.74

Q.4 Is Kinetic Trust Ltd a good buy now?

Kinetic Trust 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 Kinetic Trust Ltd?

Kinetic Trust Ltd Operating Income growth is 144.72% for FY-2025, which is above its 5-year CAGR of 54.79%, indicating faster growth.

Q.2 Return on Assets of Kinetic Trust Ltd?

Kinetic Trust Ltd Return on Asset is 1%, which is above its 5-year historical median of 0.8%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	15.4	15.4
PPOP (%)	35	-25.93
RoA (%)	1	0.8

Q.3 Return on Equity (ROE) of Kinetic Trust Ltd?

Kinetic Trust Ltd Return on Equity is 4.6% for FY-2025, which is above its 5-year historical median of 1.1%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Kinetic Trust Ltd?

Kinetic Trust Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 35% for FY-2025, which is above its 5-year median(-25.93%), indicating increasing margins.

Q.5 Net Profit Margin of Kinetic Trust Ltd?

Kinetic Trust 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 15.4% for FY-2025, which is in line with its 5-year median( 15.4%), indicating stable margins.

Q.6 Does its ROIC exceed its WACC?

Kinetic Trust Ltd return on invested capital (ROIC) is 4.02% 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.7 Total Asset growth of Kinetic Trust Ltd?

Kinetic Trust Ltd Total Asset growth is 35.48% for FY-2025, which is in line with its 5-year CAGR of 34.11%, indicating stable growth.

Ownership & governance

D: Promoter shareholding and pledge status of Kinetic Trust Ltd?

Q.1 Promoter shareholding and pledge status of Kinetic Trust Ltd?

Promoters hold 71.43% of the Kinetic Trust Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Kinetic Trust Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Kinetic Trust Ltd vs Industry Peers?

Kinetic Trust Ltd AUM CAGR is 34.11%, compared to the 5-year industry median CAGR of 9.71%, indicating faster growth and gaining its market share.

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

Kinetic Trust Ltd profit metrics are in line with the industry median level of 4.76%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	15.4	12.87
PPOP (%)	35	-
RoA (%)	1	1.4

Q.3 Operating efficiency of Kinetic Trust Ltd vs industry peers?

Kinetic Trust Ltd ROCE (1.1) is below the industry median of (4.15); while the current ROE (1.1) are below than the 5-year average Industry ROE (2.3). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	15.4	12.87
PPOP (%)	35	-
RoA (%)	1	1.4
ROCE (%)	5.7	4.15
ROE (%)	4.6	2.3

Valuation & price assessment

Q.1 Stock return of Kinetic Trust Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 15.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	15.8%	46.9%	61.8%	65.8%

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	83.43	39.69	29.12
Price to Book	2.94	1.37	1.11
Price to Sales	7	6.15	9.10
EV to EBITDA	27.06	24.74	11.77

Q.3 Valuation ratios of Kinetic Trust Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 2.94 is higher than its historical median of 1.37, indicating that the stock is trading above its historical average valuation.

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