Check Before You Invest : Rita Finance and Leasing Ltd

Q: Which industry/sub-sector does Rita Finance and Leasing Ltd belong to?

Rita Finance and Leasing Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q: Is Rita Finance and Leasing Ltd a good quality company?

Rita Finance and Leasing 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 Rita Finance and Leasing Ltd undervalued or overvalued?

Rita Finance and Leasing Ltd appears Undervalued, as its key valuation ratios are lower 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: 20.47, Historic Median: 34.87. Price to Book, Current: 1.01, Historic Median: 1.32. Price to Sales, Current: 13.58, Historic Median: 21.72. EV to EBITDA, Current: 17.82, Historic Median: 27.88

Q: Is Rita Finance and Leasing Ltd a good buy now?

Rita Finance and Leasing 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 Rita Finance and Leasing Ltd?

Rita Finance and Leasing Ltd Operating Income growth is -4.81% for FY-2025, which is below its 5-year CAGR of 21.96%, indicating slower growth.

Q: Return on Assets of Rita Finance and Leasing Ltd?

Rita Finance and Leasing Ltd Return on Asset is 3.5%, which is below its 5-year historical median of 4%, indicating deteriorated earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 58.65, Historic Median: 64.64. PPOP (%), Current: -31.68, Historic Median: -31.68. RoA (%), Current: 3.5, Historic Median: 4

Q: Return on Equity (ROE) of Rita Finance and Leasing Ltd?

Rita Finance and Leasing Ltd Return on Equity is 3.8% for FY-2025, which is below its 5-year historical median of 5%, indicating the business is making worse use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Rita Finance and Leasing Ltd?

Rita Finance and Leasing Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -31.68% for FY-2025, which is in line with its 5-year median(-31.68%), indicating stable margins.

Q: Net Profit Margin of Rita Finance and Leasing Ltd?

Rita Finance and Leasing 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 58.65% for FY-2025, which is below its 5-year median( 64.64%), indicating decreasing margins.

Q: Does its ROIC exceed its WACC?

Rita Finance and Leasing Ltd return on invested capital (ROIC) is 4.12% 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 Rita Finance and Leasing Ltd belong to?

Rita Finance and Leasing Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Rita Finance and Leasing Ltd a good quality company?

Rita Finance and Leasing 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 Rita Finance and Leasing Ltd undervalued or overvalued?

Rita Finance and Leasing Ltd appears Undervalued, as its key valuation ratios are lower 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	20.47	34.87
Price to Book	1.01	1.32
Price to Sales	13.58	21.72
EV to EBITDA	17.82	27.88

Q.4 Is Rita Finance and Leasing Ltd a good buy now?

Rita Finance and Leasing 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 Rita Finance and Leasing Ltd?

Rita Finance and Leasing Ltd Operating Income growth is -4.81% for FY-2025, which is below its 5-year CAGR of 21.96%, indicating slower growth.

Q.2 Return on Assets of Rita Finance and Leasing Ltd?

Rita Finance and Leasing Ltd Return on Asset is 3.5%, which is below its 5-year historical median of 4%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	58.65	64.64
PPOP (%)	-31.68	-31.68
RoA (%)	3.5	4

Q.3 Return on Equity (ROE) of Rita Finance and Leasing Ltd?

Rita Finance and Leasing Ltd Return on Equity is 3.8% for FY-2025, which is below its 5-year historical median of 5%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Rita Finance and Leasing Ltd?

Rita Finance and Leasing Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -31.68% for FY-2025, which is in line with its 5-year median(-31.68%), indicating stable margins.

Q.5 Net Profit Margin of Rita Finance and Leasing Ltd?

Rita Finance and Leasing 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 58.65% for FY-2025, which is below its 5-year median( 64.64%), indicating decreasing margins.

Q.6 Does its ROIC exceed its WACC?

Rita Finance and Leasing Ltd return on invested capital (ROIC) is 4.12% 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 Rita Finance and Leasing Ltd?

Rita Finance and Leasing Ltd Total Asset growth is 19.9% for FY-2025, which is below its 5-year CAGR of 25.28%, indicating slower growth.

Ownership & governance

D: Promoter shareholding and pledge status of Rita Finance and Leasing Ltd?

Q.1 Promoter shareholding and pledge status of Rita Finance and Leasing Ltd?

Promoters hold 28.89% of the Rita Finance and Leasing Ltd, with 77.32% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Rita Finance and Leasing Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Rita Finance and Leasing Ltd vs Industry Peers?

Rita Finance and Leasing Ltd AUM CAGR is 25.28%, 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 Rita Finance and Leasing Ltd vs industry peers

Rita Finance and Leasing Ltd profit metrics are in line with the industry median level of 4.76%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	58.65	12.87
PPOP (%)	-31.68	-
RoA (%)	3.5	1.4

Q.3 Operating efficiency of Rita Finance and Leasing Ltd vs industry peers?

Rita Finance and Leasing Ltd ROCE (6.6) is above the industry median of (4.15); while the current ROE (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 (%)	58.65	12.87
PPOP (%)	-31.68	-
RoA (%)	3.5	1.4
ROCE (%)	4.6	4.15
ROE (%)	3.8	2.3

Valuation & price assessment

Q.1 Stock return of Rita Finance and Leasing Ltd over the last decade?

Over the last 3 years, the stock has delivered a CAGR of -15.72% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-15.7%	-36.6%

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	20.47	34.87	29.12
Price to Book	1.01	1.32	1.11
Price to Sales	13.58	21.72	9.10
EV to EBITDA	17.82	27.88	11.77

Q.3 Valuation ratios of Rita Finance and Leasing Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1.01 is lower than its historical median of 1.32, indicating that the stock is trading below its historical average valuation.

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