Check Before You Invest : Northern ARC Capital Ltd

Q: Which industry/sub-sector does Northern ARC Capital Ltd belong to?

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

Q: Is Northern ARC Capital Ltd a good quality company?

Northern ARC Capital Ltd is a average quality company, based on a somewhat consistent 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 Northern ARC Capital Ltd undervalued or overvalued?

Northern ARC Capital 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: 13.75, Historic Median: -. Price to Book, Current: 1.24, Historic Median: -. Price to Sales, Current: 1.86, Historic Median: -. EV to EBITDA, Current: 11.52, Historic Median: -

Q: Is Northern ARC Capital Ltd a good buy now?

Northern ARC Capital Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of Northern ARC Capital Ltd?

Northern ARC Capital Ltd Operating Income growth is 24.91% for FY-2025, which is below its 5-year CAGR of 30.7%, indicating slower growth.

Q: Return on Assets of Northern ARC Capital Ltd?

Northern ARC Capital Ltd Return on Asset is 2.7%, which is in line with its 5-year historical median of 2.7%, indicating stable earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 15, Historic Median: 15.32. PPOP (%), Current: 76.71, Historic Median: 56.22. RoA (%), Current: 2.7, Historic Median: 2.7

Q: Return on Equity (ROE) of Northern ARC Capital Ltd?

Northern ARC Capital Ltd Return on Equity is 12.5% for FY-2025, which is in line with its 5-year historical median of 12.5%, indicating the business is making similar use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Northern ARC Capital Ltd?

Northern ARC Capital Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 76.71% for FY-2025, which is above its 5-year median(56.22%), indicating increasing margins.

Q: Net Profit Margin of Northern ARC Capital Ltd?

Northern ARC 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 15% for FY-2025, which is in line with its 5-year median( 15.32%), indicating stable margins.

Q: Does its ROIC exceed its WACC?

Northern ARC Capital Ltd return on invested capital (ROIC) is 7.51% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check Before You Invest : Northern ARC Capital Ltd

BSE: 544260 NSE: NORTHARC ISIN: INE850M01015

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

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

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

Q.2 Is Northern ARC Capital Ltd a good quality company?

Northern ARC Capital Ltd is a average quality company, based on a somewhat consistent 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 Northern ARC Capital Ltd undervalued or overvalued?

Northern ARC Capital 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	13.75	-
Price to Book	1.24	-
Price to Sales	1.86	-
EV to EBITDA	11.52	-

Q.4 Is Northern ARC Capital Ltd a good buy now?

Northern ARC Capital Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Northern ARC Capital Ltd?

Northern ARC Capital Ltd Operating Income growth is 24.91% for FY-2025, which is below its 5-year CAGR of 30.7%, indicating slower growth.

Q.2 Return on Assets of Northern ARC Capital Ltd?

Northern ARC Capital Ltd Return on Asset is 2.7%, which is in line with its 5-year historical median of 2.7%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	15	15.32
PPOP (%)	76.71	56.22
RoA (%)	2.7	2.7

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

Northern ARC Capital Ltd Return on Equity is 12.5% for FY-2025, which is in line with its 5-year historical median of 12.5%, indicating the business is making similar use of its shareholders capital.

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

Northern ARC Capital Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 76.71% for FY-2025, which is above its 5-year median(56.22%), indicating increasing margins.

Q.5 Net Profit Margin of Northern ARC Capital Ltd?

Northern ARC 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 15% for FY-2025, which is in line with its 5-year median( 15.32%), indicating stable margins.

Q.6 Does its ROIC exceed its WACC?

Northern ARC Capital Ltd return on invested capital (ROIC) is 7.51% 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 Northern ARC Capital Ltd?

Northern ARC Capital Ltd Total Asset growth is 15.87% for FY-2025, which is below its 5-year CAGR of 24.54%, indicating slower growth.

C: How strong is the bank’s capital position and asset quality?

Q.8 Capital Adequacy ratio of Northern ARC Capital Ltd?

Northern ARC Capital Ltd Capital Adequacy ratio (CAR) is 24.7% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

D: Promoter shareholding and pledge status of Northern ARC Capital Ltd?

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

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

Peer comparison (industry-wise, mcap)

E: How does Northern ARC Capital Ltd performance compare with that of its Peers?

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

Northern ARC Capital Ltd AUM CAGR is 24.54%, 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 Northern ARC Capital Ltd vs industry peers

Northern ARC Capital Ltd profit metrics are above the industry median level of 4.76%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	15	12.87
PPOP (%)	76.71	-
RoA (%)	2.7	1.4

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

Northern ARC Capital Ltd ROCE (10.3) is above the industry median of (4.15); while the current ROE (12.5) are above than the 5-year average Industry ROE (2.3). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	15	12.87
PPOP (%)	76.71	-
RoA (%)	2.7	1.4
ROCE (%)	10.3	4.15
ROE (%)	12.5	2.3

Valuation & price assessment

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

Over the last 1 years, the stock has delivered a CAGR of 41.75% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	41.8%

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	13.75	-	29.12
Price to Book	1.24	-	1.11
Price to Sales	1.86	-	9.10
EV to EBITDA	11.52	-	11.77

Q.3 Valuation ratios of Northern ARC Capital Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1.24 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : Northern ARC Capital Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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