Check Before You Invest : NEIL Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does NEIL Industries Ltd belong to?

NEIL Industries Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is NEIL Industries Ltd a good quality company?

NEIL Industries Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is NEIL Industries Ltd undervalued or overvalued?

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

Q.4 Is NEIL Industries Ltd a good buy now?

NEIL Industries 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 NEIL Industries Ltd?

NEIL Industries Ltd Operating Income growth is -2.85% for FY-2025, which is above its 5-year CAGR of -14.75%, indicating faster growth.

Q.2 Return on Assets of NEIL Industries Ltd?

NEIL Industries Ltd Return on Asset is 1.9%, which is in line with its 5-year historical median of 1.9%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	38.65	38.65
PPOP%	-25.82	0.81
RoA%	1.9	1.9

Q.3 Return on Equity (ROE) of NEIL Industries Ltd?

NEIL Industries Ltd Return on Equity is 2.1% for FY-2025, which is in line with its 5-year historical median of 2.1%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of NEIL Industries Ltd?

NEIL Industries Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -25.82% for FY-2025, which is below its 5-year median(0.81%), indicating decreasing margins.

Q.5 Net Profit Margin of NEIL Industries Ltd?

NEIL Industries 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 38.65% for FY-2025, which is in line with its 5-year median( 38.65%), indicating stable margins.

Q.6 Total Asset growth of NEIL Industries Ltd?

NEIL Industries Ltd Total Asset growth is 13.28% for FY-2025, which is above its 5-year CAGR of 2.86%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of NEIL Industries Ltd?

Promoters hold 1.88% of the NEIL Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of NEIL Industries Ltd vs Industry Peers?

NEIL Industries Ltd AUM CAGR is 2.86%, compared to the 5-year industry median CAGR of 9.9%, indicating slower growth and losing its market share.

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

NEIL Industries 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%	38.65	15.95
PPOP%	-25.82	4.54
RoA%	1.9	1.45

Q.3 Operating efficiency of NEIL Industries Ltd vs industry peers?

NEIL Industries Ltd ROCE (3.6) is below the industry median of (4.4); while the current ROE (2.1) are below than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	38.65	15.95
PPOP%	-25.82	4.54
RoA%	1.9	1.45
ROCE%	3.5	4.4
ROE%	2.1	2.7

Valuation & price assessment

Q.1 Stock return of NEIL Industries Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -11.7% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-11.7%	-1%	-1.9%	-27.2%

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	9.97	11.78	28.96
Price to Book	0.22	0.29	1.11
Price to Sales	3.39	5.36	9.10
EV to EBITDA	6.32	6.98	11.77

Q.4 Valuation ratios of NEIL Industries Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.22% is lower than its historical median of 0.29%, 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?

NEIL Industries Ltd return on invested capital (ROIC) is 2.05% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check more companies

1. Tata Invest Corp

2. Manappuram Finance

3. CreditAccess Grameen

4. IIFL Finance

5. Five Star Business

6. Edelweiss Financial

7. SBFC Finance

8. Bengal & Assam

9. MAS Financial Serv

10. Fedbank Financial

Check trending companies

1. Yes Bank Ltd.

2. RBL Bank Ltd.

3. Samvardhana Motherson International Ltd.

4. Jindal Saw Ltd.

5. Union Bank Of India