Check Before You Invest : National Highways Infra Trust

BSE: 543385 NSE: NHIT ISIN: INE0H7R23014

| Sector: BFSI | Industry: Finance Term Lending

Snapshot

Q.1 Which industry/sub-sector does National Highways Infra Trust belong to?

National Highways Infra Trust belongs to the BFSI sector, operating specifically within the Finance Term Lending segment.

Q.2 Is National Highways Infra Trust a good quality company?

National Highways Infra Trust is a quality company, based on a 4-year financial track record.

Q.3 Is National Highways Infra Trust undervalued or overvalued?

National Highways Infra Trust appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is National Highways Infra Trust a good buy now?

National Highways Infra Trust 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 National Highways Infra Trust?

National Highways Infra Trust Operating Income growth is 145.23% for FY-2025, which is above its 3-year CAGR of 135.17%, indicating faster growth.

Q.2 Return on Assets of National Highways Infra Trust?

National Highways Infra Trust Return on Asset is 5%, which is in line with its 3-year historical median of 5%, indicating stable earnings on assets.

	Current Level	3-year Historic Median
NPM%	60.64	77.62
PPOP%	109.71	109.71
RoA%	5	5

Q.3 Return on Equity (ROE) of National Highways Infra Trust?

National Highways Infra Trust Return on Equity is 9.2% for FY-2025, which is in line with its 3-year historical median of 9.2%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of National Highways Infra Trust?

National Highways Infra Trust Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 109.71% for FY-2025, which is in line with its 3-year median(109.71%), indicating stable margins.

Q.5 Net Profit Margin of National Highways Infra Trust?

National Highways Infra Trust Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 60.64% for FY-2025, which is below its 3-year median( 77.62%), indicating decreasing margins.

Q.6 Total Asset growth of National Highways Infra Trust?

National Highways Infra Trust Total Asset growth is 31.36% for FY-2025, which is below its 3-year CAGR of 82.58%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of National Highways Infra Trust?

Promoters hold % of the National Highways Infra Trust, with % of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of National Highways Infra Trust vs Industry Peers?

National Highways Infra Trust AUM CAGR is 82.58%, compared to the 3-year industry median CAGR of 9.79%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of National Highways Infra Trust vs industry peers

National Highways Infra Trust profit metrics are above the industry median level of 2.3%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	3-year Industry Median
NPM%	60.64	7.16
PPOP%	109.71	-1.95
RoA%	5	1.7

Q.3 Operating efficiency of National Highways Infra Trust vs industry peers?

National Highways Infra Trust ROCE (7.05) is below the industry median of (10.4); while the current ROE (9.2) are above than the 5-year average Industry ROE (8.08). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	3-year Industry Median
NPM%	60.64	7.16
PPOP%	109.71	-1.95
RoA%	5	1.7
ROCE%	7.7	10.4
ROE%	9.2	8.08

Valuation & price assessment

Q.1 Stock return of National Highways Infra Trust over the last decade?

Over the last 3 years, the stock has delivered a CAGR of 11.28% 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%	18.7%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	-	-	21.13
Price to Book	-	-	1.41
Price to Sales	-	-	4.36
EV to EBITDA	7.52	7.52	10.14

Q.4 Valuation ratios of National Highways Infra Trustvs historical and industry averages?

The current Price to book ratio (P/B) 0% is similar than its historical median of %, indicating that at the current price the stock is fairly valued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

National Highways Infra Trust return on invested capital (ROIC) is 6.89% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check more companies

1. IFCI

2. Tourism Finance Corp

3. Satin Creditcare

4. Haryana Finanl. Corp

5. Finbud Financial

6. Guj. State Fin. Corp

7. TruCap Finance

8. Mahaveer Finance Ind

9. NHIT

10. Phoenix Real Time

Check trending companies

1. JSW Infrastructure Ltd.

2. Aditya Birla Fashion and Retail Ltd.

3. Zydus Lifesciences Ltd.

4. Techno Electric & Engineering Company Ltd.

5. Cello World Ltd.