Check Before You Invest : Premier Capital Services Ltd

Q: Which industry/sub-sector does Premier Capital Services Ltd belong to?

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

Q: Is Premier Capital Services Ltd a good quality company?

Premier Capital Services Ltd is a quality company, based on a 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 Premier Capital Services Ltd undervalued or overvalued?

Premier Capital Services Ltd appears Somewhat 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: -, Historic Median: -. Price to Book, Current: 3.52, Historic Median: 1.43. Price to Sales, Current: 38.3, Historic Median: 36.83. EV to EBITDA, Current: -373.05, Historic Median: -148.97

Q: Is Premier Capital Services Ltd a good buy now?

Premier Capital Services 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

Q: Total Income growth of Premier Capital Services Ltd?

Premier Capital Services Ltd Operating Income growth is 8.35% for FY-2025, which is above its 5-year CAGR of NA%, indicating faster growth.

Q: Return on Assets of Premier Capital Services Ltd?

Premier Capital Services Ltd Return on Asset is -1.2%, which is in line with its 5-year historical median of -1.2%, indicating stable earnings on assets. Efficiency & Key Metrics. NPM (%), Current: -12.16, Historic Median: -51.17. PPOP (%), Current: -99.44, Historic Median: -16.67. RoA (%), Current: -1.2, Historic Median: -1.2

Q: Return on Equity (ROE) of Premier Capital Services Ltd?

Premier Capital Services Ltd Return on Equity is -1.3% for FY-2025, which is in line with its 5-year historical median of -1.3%, indicating the business is making similar use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Premier Capital Services Ltd?

Premier Capital Services Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -99.44% for FY-2025, which is below its 5-year median(-16.67%), indicating decreasing margins.

Q: Net Profit Margin of Premier Capital Services Ltd?

Premier Capital Services 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 -12.16% for FY-2025, which is above its 5-year median( -51.17%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

Premier Capital Services Ltd return on invested capital (ROIC) is -1.22% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Snapshot

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

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

Q.2 Is Premier Capital Services Ltd a good quality company?

Premier Capital Services Ltd is a quality company, based on a 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 Premier Capital Services Ltd undervalued or overvalued?

Premier Capital Services Ltd appears Somewhat 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	-	-
Price to Book	3.52	1.43
Price to Sales	38.3	36.83
EV to EBITDA	-373.05	-148.97

Q.4 Is Premier Capital Services Ltd a good buy now?

Premier Capital Services 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

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 Premier Capital Services Ltd?

Premier Capital Services Ltd Operating Income growth is 8.35% for FY-2025, which is above its 5-year CAGR of NA%, indicating faster growth.

Q.2 Return on Assets of Premier Capital Services Ltd?

Premier Capital Services Ltd Return on Asset is -1.2%, which is in line with its 5-year historical median of -1.2%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	-12.16	-51.17
PPOP (%)	-99.44	-16.67
RoA (%)	-1.2	-1.2

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

Premier Capital Services Ltd Return on Equity is -1.3% for FY-2025, which is in line with its 5-year historical median of -1.3%, indicating the business is making similar use of its shareholders capital.

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

Premier Capital Services Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -99.44% for FY-2025, which is below its 5-year median(-16.67%), indicating decreasing margins.

Q.5 Net Profit Margin of Premier Capital Services Ltd?

Premier Capital Services 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 -12.16% for FY-2025, which is above its 5-year median( -51.17%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

Premier Capital Services Ltd return on invested capital (ROIC) is -1.22% 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 Premier Capital Services Ltd?

Premier Capital Services Ltd Total Asset growth is 4.38% for FY-2025, which is above its 5-year CAGR of -17.07%, indicating faster growth.

Ownership & governance

D: Promoter shareholding and pledge status of Premier Capital Services Ltd?

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

Promoters hold 40.00% of the Premier Capital Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Premier Capital Services Ltd performance compare with that of its Peers?

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

Premier Capital Services Ltd AUM CAGR is -17.07%, compared to the 5-year industry median CAGR of 9.71%, indicating slower growth and losing its market share.

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

Premier Capital Services Ltd profit metrics are below the industry median level of 4.76%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	-12.16	12.87
PPOP (%)	-99.44	-
RoA (%)	-1.2	1.4

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

Premier Capital Services Ltd ROCE (-1.2) is below the industry median of (4.15); while the current ROE (-1.3) are below than the 5-year average Industry ROE (2.3). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	-12.16	12.87
PPOP (%)	-99.44	-
RoA (%)	-1.2	1.4
ROCE (%)	-1.2	4.15
ROE (%)	-1.3	2.3

Valuation & price assessment

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

Over the last 9 years, the stock has delivered a CAGR of -31.4% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-31.4%	-36.6%	19.1%	-22.4%

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	-	-	29.12
Price to Book	3.52	1.43	1.11
Price to Sales	38.3	36.83	9.10
EV to EBITDA	-373.05	-148.97	11.77

Q.3 Valuation ratios of Premier Capital Services Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 3.52 is higher than its historical median of 1.43, indicating that the stock is trading above its historical average valuation.

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