Large NBFC
Market Cap
₹1,05,416 ₹1.05 L Cr.
P/E
9.27
PEG
0.71
PEG = P/E ÷ 5yr forward EPS CAGR
5yr forward EPS CAGR thesis · Base case

Revenue growth is entirely volume-driven, with stable income realization, dependent on sustained gold-loan demand and branch execution.

Bull case requires faster loan-book expansion and a modest yield uplift; bear case arises if AUM growth decelerates and realization compresses, likely from competition or gold-price correction.

The thesis slides to bear if AUM growth lags or lending yield dips below normalized levels for consecutive quarters.

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5Y Revenue & EBITDA Estimates
KEY TRIGGERS TO WATCH
  • Revenue growth is entirely volume-driven, with stable income realization, dependent on sustained gold-loan demand and branch execution.
  • Bull case requires faster loan-book expansion and a modest yield uplift; bear case arises if AUM growth decelerates and realization compresses, likely from competition or gold-price correction.
  • The thesis slides to bear if AUM growth lags or lending yield dips below normalized levels for consecutive quarters.
Bear : 0.4% CAGR • ₹186 Cr
Base: 5.4% CAGR • ₹236 Cr
Bull: 9.5% CAGR • ₹286 Cr
Buy Report $5
Management Credibility Report
TRACK RECORD
  • Management's conservative growth floors are reliably under-promised, making the 15% guidance a downside guardrail; outperformance is largely a gold-price artifact, not operational excellence.
  • Delivery on diversification and spread commitments is merely adequate: the subsidiary-contribution target is drifting backwards and the interest spread sits marginally below its floor.
  • Headline beats should be discounted; investors should model tonnage-based volumes and core yields stripped of one-off recoveries.
Met : 10
Progress: 2
Missed : 0
Buy Report $5
WORST-CASE SCENARIO
  • Earnings quality is moderately clouded by cyclical NPA recovery income boosting yields, while aggressive expansion in non-gold lending creates execution risk.
  • Gold price concentration is the structural vulnerability: a sustained correction would erode LTV headroom and growth, amplified by potential RBI strict LTV enforcement.
  • Contested tax demand is manageable but represents a legal overhang on a strong balance sheet.
High Risk : 0
Medium Risk : 2
Low Risk : 15
Buy Report $5
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