Check Before You Invest : Milgrey Finance & Investments Ltd

BSE: 511018 NSE: ISIN: INE679T01013

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Milgrey Finance & Investments Ltd belong to?

Milgrey Finance & Investments Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Milgrey Finance & Investments Ltd a good quality company?

Milgrey Finance & Investments Ltd is a weak quality company, based on a inconsistent 3-year financial track record.

Q.3 Is Milgrey Finance & Investments Ltd undervalued or overvalued?

Milgrey Finance & Investments Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Milgrey Finance & Investments Ltd a good buy now?

Milgrey Finance & Investments 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 Milgrey Finance & Investments Ltd?

Milgrey Finance & Investments Ltd Operating Income growth is NA% for FY-2024, which is in line with its 3-year CAGR of NA%, indicating stable growth.

Q.2 Return on Assets of Milgrey Finance & Investments Ltd?

Milgrey Finance & Investments Ltd Return on Asset is 0%, which is above its 3-year historical median of -0.7%, indicating improved earnings on assets.

	Current Level	3-year Historic Median
NPM%	14.65	-8.53
PPOP%	-	-
RoA%	-	-0.7

Q.3 Return on Equity (ROE) of Milgrey Finance & Investments Ltd?

Milgrey Finance & Investments Ltd Return on Equity is 0.1% for FY-2024, which is in line with its 3-year historical median of 0.1%, indicating the business is making similar use of its shareholders capital.

Q.4 Net Profit Margin of Milgrey Finance & Investments Ltd?

Milgrey Finance & Investments 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 14.65% for FY-2024, which is above its 3-year median( -8.53%), indicating increasing margins.

Q.5 Total Asset growth of Milgrey Finance & Investments Ltd?

Milgrey Finance & Investments Ltd Total Asset growth is 4.38% for FY-2024, which is below its 3-year CAGR of 297.91%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Milgrey Finance & Investments Ltd?

Promoters hold 13.72% of the Milgrey Finance & Investments Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Milgrey Finance & Investments Ltd vs Industry Peers?

Milgrey Finance & Investments Ltd AUM CAGR is 297.91%, compared to the 3-year industry median CAGR of 9.12%, indicating faster growth and gaining its market share.

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

Milgrey Finance & Investments Ltd profit metrics are in line with the industry median level of 2.74%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	3-year Industry Median
NPM%	14.65	14.65
PPOP%	-	-7.54
RoA%	-	1.1

Q.3 Operating efficiency of Milgrey Finance & Investments Ltd vs industry peers?

Milgrey Finance & Investments Ltd ROCE (-0.7) is below the industry median of (2.1); while the current ROE (0.1) are below than the 5-year average Industry ROE (1.9). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	3-year Industry Median
NPM%	14.65	14.65
PPOP%	-	-7.54
RoA%	-	1.1
ROCE%	0.2	2.1
ROE%	0.1	1.9

Valuation & price assessment

Q.1 Stock return of Milgrey Finance & Investments Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 19.6% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	19.6%	22.2%	28.3%	-32.2%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	154.66	232.57	33.22
Price to Book	3.68	4.74	1.01
Price to Sales	1076.16	1296.88	15.19
EV to EBITDA	187.7	219.69	10.00

Q.4 Valuation ratios of Milgrey Finance & Investments Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 3.68% is lower than its historical median of 4.74%, 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?

Milgrey Finance & Investments Ltd return on invested capital (ROIC) is 0.13% for FY-2024, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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