Siddha Ventures Stock Price Analysis and Quick Research Report. Is Siddha Ventures an attractive stock to invest in?

Around 2% of India's total population invests in financial assets. The penetration of the mutual fund industry in India is close to 7% (Based on the number of PAN cardholders). This under penetration of the mutual fund industry offers a huge opportunity for the industry to grow. Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry. Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

To understand the functions of the Siddha Ventures better, you must go through the following points:

Key Financials –

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of Siddha Ventures is Rs 21.2751 Cr and the compounded growth of profit in the past 3 years is 218.279377441421 %. The PAT margin of Siddha Ventures is 1592.09009952855 %.

• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Siddha Ventures , the EPS grew by 6978.9753825682 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): Siddha Ventures has a healthy ROE track record. The ROE of Siddha Ventures is at 77.6866113095108 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Siddha Ventures is worth at the current levels at Rs 9.14. Siddha Ventures is trading at a current P/E ratio of 0.18891510098969 and the average historical P/E for the last 5 years was 5.71078230924946.

• P/B ratio can be one of the best metrics to value such companies. Currently, Siddha Ventures is trading at a P/B of 0.2396 . The average historical P/B for the last 5 years was 0.141475036338125. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

• Share Price: - The current share price of Siddha Ventures is Rs 9.14. One can use valuation calculators of ticker to know if Siddha Ventures share price is undervalued or overvalued.