Check Before You Invest : Shardul Securities Ltd

BSE: 512393 NSE: SHARDUL ISIN: INE037B01020

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Shardul Securities Ltd belong to?

Shardul Securities Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Shardul Securities Ltd a good quality company?

Shardul Securities Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Shardul Securities Ltd undervalued or overvalued?

Shardul Securities Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Shardul Securities Ltd a good buy now?

Shardul Securities 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

Q.1 Total Income growth of Shardul Securities Ltd?

Shardul Securities Ltd Operating Income growth is -73.45% for FY-2025, which is below its 5-year CAGR of 61.9%, indicating slower growth.

Q.2 Return on Assets of Shardul Securities Ltd?

Shardul Securities Ltd Return on Asset is 3.7%, which is in line with its 5-year historical median of 3.7%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	50.81	58.85
PPOP%	-78.57	-47.37
RoA%	3.7	3.7

Q.3 Return on Equity (ROE) of Shardul Securities Ltd?

Shardul Securities Ltd Return on Equity is 3.8% for FY-2025, which is in line with its 5-year historical median of 3.8%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Shardul Securities Ltd?

Shardul Securities Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -78.57% for FY-2025, which is below its 5-year median(-47.37%), indicating decreasing margins.

Q.5 Net Profit Margin of Shardul Securities Ltd?

Shardul Securities 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 50.81% for FY-2025, which is below its 5-year median( 58.85%), indicating decreasing margins.

Q.6 Total Asset growth of Shardul Securities Ltd?

Shardul Securities Ltd Total Asset growth is 5.75% for FY-2025, which is below its 5-year CAGR of 23.53%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Shardul Securities Ltd?

Promoters hold 74.85% of the Shardul Securities Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Shardul Securities Ltd vs Industry Peers?

Shardul Securities Ltd AUM CAGR is 23.53%, 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 Shardul Securities Ltd vs industry peers

Shardul Securities Ltd profit metrics are in line with the industry median level of -0.88%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	50.81	9.95
PPOP%	-78.57	-13.4
RoA%	3.7	0.8

Q.3 Operating efficiency of Shardul Securities Ltd vs industry peers?

Shardul Securities Ltd ROCE (5.4) is above the industry median of (1.9); while the current ROE (3.8) are above than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	50.81	9.95
PPOP%	-78.57	-13.4
RoA%	3.7	0.8
ROCE%	5.4	1.9
ROE%	3.8	1.2

Valuation & price assessment

Q.1 Stock return of Shardul Securities Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 14.2% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	14.2%	23.8%	14.4%	-30.8%

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	-	8.45	33.72
Price to Book	0.44	0.49	0.94
Price to Sales	-4.07	8.20	12.44
EV to EBITDA	-6.09	5.36	9.97

Q.4 Valuation ratios of Shardul Securities Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 0.44% is lower than its historical median of 0.49%, indicating that at the current price the stock is undervalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Shardul Securities Ltd return on invested capital (ROIC) is 3.87% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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