Check Before You Invest : STEL Holdings Ltd

Q: Which industry/sub-sector does STEL Holdings Ltd belong to?

STEL Holdings Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q: Is STEL Holdings Ltd a good quality company?

STEL Holdings Ltd is a weak quality company, based on a inconsistent 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 STEL Holdings Ltd undervalued or overvalued?

STEL Holdings 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: 30.66, Historic Median: 30.87. Price to Book, Current: 0.49, Historic Median: 0.37. Price to Sales, Current: 22.71, Historic Median: 22.38. EV to EBITDA, Current: 21.96, Historic Median: 21.46

Q: Is STEL Holdings Ltd a good buy now?

STEL Holdings 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

Q: Total Income growth of STEL Holdings Ltd?

STEL Holdings Ltd Operating Income growth is 18.65% for FY-2025, which is above its 5-year CAGR of 6.15%, indicating faster growth.

Q: Return on Assets of STEL Holdings Ltd?

STEL Holdings Ltd Return on Asset is 0.9%, which is below its 5-year historical median of 1.4%, indicating deteriorated earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 72.48, Historic Median: 71.94. PPOP (%), Current: 16.67, Historic Median: 12.5. RoA (%), Current: 0.9, Historic Median: 1.4

Q: Return on Equity (ROE) of STEL Holdings Ltd?

STEL Holdings Ltd Return on Equity is 1% for FY-2025, which is below its 5-year historical median of 1.4%, indicating the business is making worse use of its shareholders capital.

Q: Pre-provisioning operating profit margin of STEL Holdings Ltd?

STEL Holdings Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 16.67% for FY-2025, which is above its 5-year median(12.5%), indicating increasing margins.

Q: Net Profit Margin of STEL Holdings Ltd?

STEL Holdings 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 72.48% for FY-2025, which is in line with its 5-year median( 71.94%), indicating stable margins.

Q: Does its ROIC exceed its WACC?

STEL Holdings Ltd return on invested capital (ROIC) is 0.98% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check Before You Invest : STEL Holdings Ltd

BSE: 533316 NSE: STEL ISIN: INE577L01016

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does STEL Holdings Ltd belong to?

STEL Holdings Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is STEL Holdings Ltd a good quality company?

STEL Holdings Ltd is a weak quality company, based on a inconsistent 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 STEL Holdings Ltd undervalued or overvalued?

STEL Holdings 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	30.66	30.87
Price to Book	0.49	0.37
Price to Sales	22.71	22.38
EV to EBITDA	21.96	21.46

Q.4 Is STEL Holdings Ltd a good buy now?

STEL Holdings 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

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 STEL Holdings Ltd?

STEL Holdings Ltd Operating Income growth is 18.65% for FY-2025, which is above its 5-year CAGR of 6.15%, indicating faster growth.

Q.2 Return on Assets of STEL Holdings Ltd?

STEL Holdings Ltd Return on Asset is 0.9%, which is below its 5-year historical median of 1.4%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	72.48	71.94
PPOP (%)	16.67	12.5
RoA (%)	0.9	1.4

Q.3 Return on Equity (ROE) of STEL Holdings Ltd?

STEL Holdings Ltd Return on Equity is 1% for FY-2025, which is below its 5-year historical median of 1.4%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of STEL Holdings Ltd?

STEL Holdings Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 16.67% for FY-2025, which is above its 5-year median(12.5%), indicating increasing margins.

Q.5 Net Profit Margin of STEL Holdings Ltd?

STEL Holdings 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 72.48% for FY-2025, which is in line with its 5-year median( 71.94%), indicating stable margins.

Q.6 Does its ROIC exceed its WACC?

STEL Holdings Ltd return on invested capital (ROIC) is 0.98% 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 STEL Holdings Ltd?

STEL Holdings Ltd Total Asset growth is 19.56% for FY-2025, which is below its 5-year CAGR of 33.39%, indicating slower growth.

C: How strong is the bank’s capital position and asset quality?

Q.8 Capital Adequacy ratio of STEL Holdings Ltd?

STEL Holdings Ltd Capital Adequacy ratio (CAR) is 138.6% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

D: Promoter shareholding and pledge status of STEL Holdings Ltd?

Q.1 Promoter shareholding and pledge status of STEL Holdings Ltd?

Promoters hold 71.66% of the STEL Holdings Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does STEL Holdings Ltd performance compare with that of its Peers?

Q.1 AUM Growth of STEL Holdings Ltd vs Industry Peers?

STEL Holdings Ltd AUM CAGR is 33.39%, compared to the 5-year industry median CAGR of 9.08%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of STEL Holdings Ltd vs industry peers

STEL Holdings Ltd profit metrics are above the industry median level of -1.22%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	72.48	3.22
PPOP (%)	16.67	-7.69
RoA (%)	0.9	0.8

Q.3 Operating efficiency of STEL Holdings Ltd vs industry peers?

STEL Holdings Ltd ROCE (1.9) is above the industry median of (1.8); while the current ROE (1.4) are above than the 5-year average Industry ROE (0.9). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	72.48	3.22
PPOP (%)	16.67	-7.69
RoA (%)	0.9	0.8
ROCE (%)	1.3	1.8
ROE (%)	1	0.9

Valuation & price assessment

Q.1 Stock return of STEL Holdings Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 32.7% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	32.7%	43.6%	50.3%	27.6%

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	30.66	30.87	33.75
Price to Book	0.49	0.37	0.95
Price to Sales	22.71	22.38	12.43
EV to EBITDA	21.96	21.46	10.00

Q.3 Valuation ratios of STEL Holdings Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 0.49 is higher than its historical median of 0.37, indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : STEL Holdings Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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