Check Before You Invest : Viji Finance Ltd

BSE: 537820 NSE: VIJIFIN ISIN: INE159N01027

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Viji Finance Ltd belong to?

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

Q.2 Is Viji Finance Ltd a good quality company?

Viji Finance Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Viji Finance Ltd undervalued or overvalued?

Viji Finance Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Viji Finance Ltd a good buy now?

Viji Finance 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 Viji Finance Ltd?

Viji Finance Ltd Operating Income growth is 20.73% for FY-2025, which is above its 5-year CAGR of 18.67%, indicating faster growth.

Q.2 Return on Assets of Viji Finance Ltd?

Viji Finance Ltd Return on Asset is 0.6%, which is below its 5-year historical median of 2.2%, indicating deteriorated earnings on assets.

	Current Level	5-year Historic Median
NPM%	7.26	21.12
PPOP%	-15.38	-4.69
RoA%	0.6	2.2

Q.3 Return on Equity (ROE) of Viji Finance Ltd?

Viji Finance Ltd Return on Equity is 1% for FY-2025, which is below its 5-year historical median of 3.7%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Viji Finance Ltd?

Viji Finance Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -15.38% for FY-2025, which is below its 5-year median(-4.69%), indicating decreasing margins.

Q.5 Net Profit Margin of Viji Finance Ltd?

Viji Finance 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 7.26% for FY-2025, which is below its 5-year median( 21.12%), indicating decreasing margins.

Q.6 Total Asset growth of Viji Finance Ltd?

Viji Finance Ltd Total Asset growth is 32.16% for FY-2025, which is above its 5-year CAGR of 17.38%, indicating faster growth.

Ownership & governance

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

Promoters hold 47.68% of the Viji Finance Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Viji Finance Ltd vs Industry Peers?

Viji Finance Ltd AUM CAGR is 17.38%, compared to the 5-year industry median CAGR of 9.9%, indicating faster growth and gaining its market share.

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

Viji Finance Ltd profit metrics are in line with the industry median level of 7.19%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	7.26	15.95
PPOP%	-15.38	4.17
RoA%	0.6	1.45

Q.3 Operating efficiency of Viji Finance Ltd vs industry peers?

Viji Finance Ltd ROCE (3.6) is below the industry median of (4.4); while the current ROE (3.7) are above than the 5-year average Industry ROE (2.7). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	7.26	15.95
PPOP%	-15.38	4.17
RoA%	0.6	1.45
ROCE%	2.6	4.4
ROE%	1	2.7

Valuation & price assessment

Q.1 Stock return of Viji Finance Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 1.1% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	1.1%	39.2%	42.6%	106.5%

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	30.52	57.70	28.96
Price to Book	2.75	1.81	1.11
Price to Sales	11.86	15.32	9.10
EV to EBITDA	19.21	41.62	11.77

Q.4 Valuation ratios of Viji Finance Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 2.75% is higher than its historical median of 1.81%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Viji Finance Ltd return on invested capital (ROIC) is 1.88% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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