Check Before You Invest : Vani Commercials Ltd

Q: Which industry/sub-sector does Vani Commercials Ltd belong to?

Vani Commercials Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q: Is Vani Commercials Ltd a good quality company?

Vani Commercials 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 Vani Commercials Ltd undervalued or overvalued?

Vani Commercials 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: 38.61, Historic Median: 32.16. Price to Book, Current: 0.78, Historic Median: 0.97. Price to Sales, Current: 18.29, Historic Median: 5.15. EV to EBITDA, Current: 13.21, Historic Median: 23.58

Q: Is Vani Commercials Ltd a good buy now?

Vani Commercials 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 Vani Commercials Ltd?

Vani Commercials Ltd Operating Income growth is 7.96% for FY-2025, which is below its 5-year CAGR of 44.24%, indicating slower growth.

Q: Return on Assets of Vani Commercials Ltd?

Vani Commercials Ltd Return on Asset is 0.5%, which is above its 5-year historical median of 0.3%, indicating improved earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 7.67, Historic Median: 4.49. PPOP (%), Current: -20, Historic Median: 100. RoA (%), Current: 0.5, Historic Median: 0.3

Q: Return on Equity (ROE) of Vani Commercials Ltd?

Vani Commercials Ltd Return on Equity is 1.9% for FY-2025, which is above its 5-year historical median of 1.1%, indicating the business is making better use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Vani Commercials Ltd?

Vani Commercials Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -20% for FY-2025, which is below its 5-year median(100%), indicating decreasing margins.

Q: Net Profit Margin of Vani Commercials Ltd?

Vani Commercials 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 7.67% for FY-2025, which is above its 5-year median( 4.49%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

Vani Commercials Ltd return on invested capital (ROIC) is 1.47% 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 Vani Commercials Ltd belong to?

Vani Commercials Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Vani Commercials Ltd a good quality company?

Vani Commercials 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 Vani Commercials Ltd undervalued or overvalued?

Vani Commercials 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	38.61	32.16
Price to Book	0.78	0.97
Price to Sales	18.29	5.15
EV to EBITDA	13.21	23.58

Q.4 Is Vani Commercials Ltd a good buy now?

Vani Commercials 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 Vani Commercials Ltd?

Vani Commercials Ltd Operating Income growth is 7.96% for FY-2025, which is below its 5-year CAGR of 44.24%, indicating slower growth.

Q.2 Return on Assets of Vani Commercials Ltd?

Vani Commercials Ltd Return on Asset is 0.5%, which is above its 5-year historical median of 0.3%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	7.67	4.49
PPOP (%)	-20	100
RoA (%)	0.5	0.3

Q.3 Return on Equity (ROE) of Vani Commercials Ltd?

Vani Commercials Ltd Return on Equity is 1.9% for FY-2025, which is above its 5-year historical median of 1.1%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Vani Commercials Ltd?

Vani Commercials Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -20% for FY-2025, which is below its 5-year median(100%), indicating decreasing margins.

Q.5 Net Profit Margin of Vani Commercials Ltd?

Vani Commercials 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 7.67% for FY-2025, which is above its 5-year median( 4.49%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

Vani Commercials Ltd return on invested capital (ROIC) is 1.47% 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 Vani Commercials Ltd?

Vani Commercials Ltd Total Asset growth is -16.94% for FY-2025, which is below its 5-year CAGR of 40.61%, indicating slower growth.

Ownership & governance

D: Promoter shareholding and pledge status of Vani Commercials Ltd?

Q.1 Promoter shareholding and pledge status of Vani Commercials Ltd?

Promoters hold 0.00% of the Vani Commercials Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Vani Commercials Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Vani Commercials Ltd vs Industry Peers?

Vani Commercials Ltd AUM CAGR is 40.61%, compared to the 5-year industry median CAGR of 9.68%, indicating faster growth and gaining its market share.

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

Vani Commercials Ltd profit metrics are below the industry median level of 4.73%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	7.67	12.79
PPOP (%)	-20	-
RoA (%)	0.5	1.4

Q.3 Operating efficiency of Vani Commercials Ltd vs industry peers?

Vani Commercials Ltd ROCE (4.1) is in line with the industry median of (4.1); while the current ROE (1.1) are below than the 5-year average Industry ROE (2.2). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	7.67	12.79
PPOP (%)	-20	-
RoA (%)	0.5	1.4
ROCE (%)	2.3	4.1
ROE (%)	1.9	2.2

Valuation & price assessment

Q.1 Stock return of Vani Commercials Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -16% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-16%	39.4%	-8.7%	-28.5%

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	38.61	32.16	29.12
Price to Book	0.78	0.97	1.11
Price to Sales	18.29	5.15	9.10
EV to EBITDA	13.21	23.58	11.77

Q.3 Valuation ratios of Vani Commercials Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 0.78 is lower than its historical median of 0.97, indicating that the stock is trading below its historical average valuation.

Check more companies

1. Tata Invest Corp

2. Manappuram Finance

3. IIFL Finance

4. CreditAccess Grameen

5. Five Star Business

6. Edelweiss Financial

7. SBFC Finance

8. Bengal & Assam

9. Dhenu Buildcon Infra

10. Fedbank Financial

Check trending companies

1. Blue Dart Express Ltd.

2. Pidilite Industries Ltd.

3. Atul Ltd.

4. Bayer CropScience Ltd.

5. Astral Ltd.