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

Around 2% of India's total population invests in financial assets. The mutual fund industry's penetration in India is close to 7% (Based on the number of PAN cardholders). This under penetration 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.

ARC Finance stock price today is Rs 2.6. To understand the functions of the ARC Finance 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 ARC Finance is Rs 0.2713497 Cr and the compounded growth of profit in the past 3 years is 14.3503897333346 %. The PAT margin of ARC Finance is 2.938 %.

• 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 ARC Finance , the EPS declined by -16.3265 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): ARC Finance has a poor ROE track record. The ROE of ARC Finance is at 0.5279 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of ARC Finance is worth at the current levels at Rs 2.6. The stock is trading at a current P/E ratio of 113.6364 and the average historical P/E for the last 5 years was 170.68608.

• P/B ratio can be one of the best metrics to value such companies. Currently, ARC Finance is trading at a P/B of 2.2719 . The average historical P/B of ARC Finance for the last 5 years was 0.90958. 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 ARC Finance is Rs 2.6. One can use valuation calculators of ticker to know if ARC Finance share price is undervalued or overvalued.