Check Before You Invest : Nalwa Sons Investments Ltd

BSE: 532256 NSE: NSIL ISIN: INE023A01030

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Nalwa Sons Investments Ltd belong to?

Nalwa Sons Investments Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Nalwa Sons Investments Ltd a good quality company?

Nalwa Sons Investments Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Nalwa Sons Investments Ltd undervalued or overvalued?

Nalwa Sons Investments Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Nalwa Sons Investments Ltd a good buy now?

Nalwa Sons Investments Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Nalwa Sons Investments Ltd?

Nalwa Sons Investments Ltd Operating Income growth is 35.65% for FY-2025, which is above its 5-year CAGR of 16.85%, indicating faster growth.

Q.2 Return on Assets of Nalwa Sons Investments Ltd?

Nalwa Sons Investments Ltd Return on Asset is 0.2%, which is below its 5-year historical median of 0.7%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	41.43	72.23
PPOP%	37.5	37.5
RoA%	0.2	0.7

Q.3 Return on Equity (ROE) of Nalwa Sons Investments Ltd?

Nalwa Sons Investments Ltd Return on Equity is 0.3% for FY-2025, which is below its 5-year historical median of 0.8%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Nalwa Sons Investments Ltd?

Nalwa Sons Investments Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 37.5% for FY-2025, which is in line with its 5-year median(37.5%), indicating stable margins.

Q.5 Net Profit Margin of Nalwa Sons Investments Ltd?

Nalwa Sons Investments 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 41.43% for FY-2025, which is below its 5-year median( 72.23%), indicating decreasing margins.

Q.6 Total Asset growth of Nalwa Sons Investments Ltd?

Nalwa Sons Investments Ltd Total Asset growth is 31.54% for FY-2025, which is below its 5-year CAGR of 40.78%, indicating slower growth.

Q.7 Capital Adequacy ratio of Nalwa Sons Investments Ltd?

Nalwa Sons Investments Ltd Capital Adequacy ratio (CAR) is 31.3% 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 Nalwa Sons Investments Ltd?

Promoters hold 55.62% of the Nalwa Sons Investments Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Nalwa Sons Investments Ltd vs Industry Peers?

Nalwa Sons Investments Ltd AUM CAGR is 40.78%, compared to the 5-year industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Nalwa Sons Investments Ltd vs industry peers

Nalwa Sons Investments Ltd profit metrics are in line with the industry median level of -0.85%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	41.43	9.95
PPOP%	37.5	-13.31
RoA%	0.2	0.8

Q.3 Operating efficiency of Nalwa Sons Investments Ltd vs industry peers?

Nalwa Sons Investments Ltd ROCE (0.9) is below the industry median of (1.9); while the current ROE (0.8) are below than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	41.43	9.95
PPOP%	37.5	-13.31
RoA%	0.2	0.8
ROCE%	0.4	1.9
ROE%	0.3	1.2

Valuation & price assessment

Q.1 Stock return of Nalwa Sons Investments Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 26% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	26%	31%	41.3%	-7.1%

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	150.26	26.60	33.72
Price to Book	0.19	0.17	0.94
Price to Sales	43.88	21.05	12.44
EV to EBITDA	102.29	24.55	9.97

Q.4 Valuation ratios of Nalwa Sons Investments Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.19% is higher than its historical median of 0.17%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Nalwa Sons Investments Ltd return on invested capital (ROIC) is 0.26% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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