Check Before You Invest : MKVentures Capital Ltd

Snapshot

Q.1 Which industry/sub-sector does MKVentures Capital Ltd belong to?

MKVentures Capital Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is MKVentures Capital Ltd a good quality company?

MKVentures Capital Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is MKVentures Capital Ltd undervalued or overvalued?

MKVentures Capital Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is MKVentures Capital Ltd a good buy now?

MKVentures Capital 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

Q.1 Total Income growth of MKVentures Capital Ltd?

MKVentures Capital Ltd Operating Income growth is -35.43% for FY-2025, which is below its 5-year CAGR of 64.06%, indicating slower growth.

Q.2 Return on Assets of MKVentures Capital Ltd?

MKVentures Capital Ltd Return on Asset is 8%, which is below its 5-year historical median of 10.1%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	37.21	37.21
PPOP%	-24.14	26.09
RoA%	8	10.1

Q.3 Return on Equity (ROE) of MKVentures Capital Ltd?

MKVentures Capital Ltd Return on Equity is 9.6% for FY-2025, which is below its 5-year historical median of 33.6%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of MKVentures Capital Ltd?

MKVentures Capital Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -24.14% for FY-2025, which is below its 5-year median(26.09%), indicating decreasing margins.

Q.5 Net Profit Margin of MKVentures Capital Ltd?

MKVentures Capital 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 37.21% for FY-2025, which is in line with its 5-year median( 37.21%), indicating stable margins.

Q.6 Total Asset growth of MKVentures Capital Ltd?

MKVentures Capital Ltd Total Asset growth is 6.14% for FY-2025, which is below its 5-year CAGR of 68.15%, indicating slower growth.

Q.7 Capital Adequacy ratio of MKVentures Capital Ltd?

MKVentures Capital Ltd Capital Adequacy ratio (CAR) is 83.6% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

Q.1 Promoter shareholding and pledge status of MKVentures Capital Ltd?

Promoters hold 74.36% of the MKVentures Capital Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of MKVentures Capital Ltd vs Industry Peers?

MKVentures Capital Ltd AUM CAGR is 68.15%, compared to the 5-year industry median CAGR of 9.9%, indicating faster growth and gaining its market share.

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

MKVentures Capital Ltd profit metrics are in line with the industry median level of 7.31%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	37.21	15.95
PPOP%	-24.14	4.54
RoA%	8	1.45

Q.3 Operating efficiency of MKVentures Capital Ltd vs industry peers?

MKVentures Capital Ltd ROCE (20.6) is above the industry median of (4.4); while the current ROE (33.6) are above than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	37.21	15.95
PPOP%	-24.14	4.54
RoA%	8	1.45
ROCE%	16.6	4.4
ROE%	9.6	2.7

Valuation & price assessment

Q.1 Stock return of MKVentures Capital Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 53.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	53.7%	116.9%	-11.9%	-30.1%

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	87.97	40.04	28.96
Price to Book	3.69	6.76	1.11
Price to Sales	35.8	27.32	9.10
EV to EBITDA	51.95	20.69	11.77

Q.4 Valuation ratios of MKVentures Capital Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 3.69% is lower than its historical median of 6.76%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

MKVentures Capital Ltd return on invested capital (ROIC) is 11.89% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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