Check Before You Invest : SP Capital Financing Ltd

Q: Which industry/sub-sector does SP Capital Financing Ltd belong to?

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

Q: Is SP Capital Financing Ltd a good quality company?

SP Capital Financing 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 SP Capital Financing Ltd undervalued or overvalued?

SP Capital Financing Ltd appears Fair, as its key valuation ratios are in line with 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: 5.49, Historic Median: 21.04. Price to Book, Current: 1.1, Historic Median: 0.81. Price to Sales, Current: 2.66, Historic Median: 8.72. EV to EBITDA, Current: 11.85, Historic Median: 13.13

Q: Is SP Capital Financing Ltd a good buy now?

SP Capital Financing 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 SP Capital Financing Ltd?

SP Capital Financing Ltd Operating Income growth is 115.09% for FY-2025, which is above its 5-year CAGR of 17.2%, indicating faster growth.

Q: Return on Assets of SP Capital Financing Ltd?

SP Capital Financing Ltd Return on Asset is 0.9%, which is below its 5-year historical median of 1.7%, indicating deteriorated earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 16.45, Historic Median: 30.62. PPOP (%), Current: 109.46, Historic Median: 15.63. RoA (%), Current: 0.9, Historic Median: 1.7

Q: Return on Equity (ROE) of SP Capital Financing Ltd?

SP Capital Financing Ltd Return on Equity is 4.2% for FY-2025, which is in line with its 5-year historical median of 4.2%, indicating the business is making similar use of its shareholders capital.

Q: Pre-provisioning operating profit margin of SP Capital Financing Ltd?

SP Capital Financing Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 109.46% for FY-2025, which is above its 5-year median(15.63%), indicating increasing margins.

Q: Net Profit Margin of SP Capital Financing Ltd?

SP Capital Financing 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 16.45% for FY-2025, which is below its 5-year median( 30.62%), indicating decreasing margins.

Q: Does its ROIC exceed its WACC?

SP Capital Financing Ltd return on invested capital (ROIC) is 2.97% 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 SP Capital Financing Ltd belong to?

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

Q.2 Is SP Capital Financing Ltd a good quality company?

SP Capital Financing 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 SP Capital Financing Ltd undervalued or overvalued?

SP Capital Financing Ltd appears Fair, as its key valuation ratios are in line with 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	5.49	21.04
Price to Book	1.1	0.81
Price to Sales	2.66	8.72
EV to EBITDA	11.85	13.13

Q.4 Is SP Capital Financing Ltd a good buy now?

SP Capital Financing 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 SP Capital Financing Ltd?

SP Capital Financing Ltd Operating Income growth is 115.09% for FY-2025, which is above its 5-year CAGR of 17.2%, indicating faster growth.

Q.2 Return on Assets of SP Capital Financing Ltd?

SP Capital Financing Ltd Return on Asset is 0.9%, which is below its 5-year historical median of 1.7%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	16.45	30.62
PPOP (%)	109.46	15.63
RoA (%)	0.9	1.7

Q.3 Return on Equity (ROE) of SP Capital Financing Ltd?

SP Capital Financing Ltd Return on Equity is 4.2% for FY-2025, which is in line with its 5-year historical median of 4.2%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of SP Capital Financing Ltd?

SP Capital Financing Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 109.46% for FY-2025, which is above its 5-year median(15.63%), indicating increasing margins.

Q.5 Net Profit Margin of SP Capital Financing Ltd?

SP Capital Financing 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 16.45% for FY-2025, which is below its 5-year median( 30.62%), indicating decreasing margins.

Q.6 Does its ROIC exceed its WACC?

SP Capital Financing Ltd return on invested capital (ROIC) is 2.97% 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 SP Capital Financing Ltd?

SP Capital Financing Ltd Total Asset growth is 57.13% for FY-2025, which is in line with its 5-year CAGR of 55.92%, indicating stable growth.

Ownership & governance

D: Promoter shareholding and pledge status of SP Capital Financing Ltd?

Q.1 Promoter shareholding and pledge status of SP Capital Financing Ltd?

Promoters hold 70.91% of the SP Capital Financing Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does SP Capital Financing Ltd performance compare with that of its Peers?

Q.1 AUM Growth of SP Capital Financing Ltd vs Industry Peers?

SP Capital Financing Ltd AUM CAGR is 55.92%, 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 SP Capital Financing Ltd vs industry peers

SP Capital Financing 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 (%)	16.45	12.87
PPOP (%)	109.46	-
RoA (%)	0.9	1.4

Q.3 Operating efficiency of SP Capital Financing Ltd vs industry peers?

SP Capital Financing Ltd ROCE (4.5) is above the industry median of (4.15); while the current ROE (4.2) 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 (%)	16.45	12.87
PPOP (%)	109.46	-
RoA (%)	0.9	1.4
ROCE (%)	4.5	4.15
ROE (%)	4.2	2.3

Valuation & price assessment

Q.1 Valuation ratios of SP Capital Financing Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 1.1 is higher than its historical median of 0.81, indicating that the stock is trading above its historical average valuation.

Q.2 Stock return of SP Capital Financing Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 8.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	8.3%	25.4%	53.2%	17.8%

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	5.49	21.04	29.12
Price to Book	1.1	0.81	1.11
Price to Sales	2.66	8.72	9.10
EV to EBITDA	11.85	13.13	11.77

Check more companies

1. Tata Invest Corp

2. Manappuram Finance

3. CreditAccess Grameen

4. IIFL Finance

5. Five Star Business

6. Edelweiss Financial

7. SBFC Finance

8. Bengal & Assam

9. MAS Financial Serv

10. Fedbank Financial

Check trending companies

1. IFCI Ltd.

2. Aditya Birla Lifestyle Brands Ltd.

3. Aditya Birla Capital Ltd.

4. Tata Steel Ltd.

5. Nippon Life India Asset Management Ltd.