RSD Finance Stock Price Analysis and Quick Research Report. Is RSD 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.

RSD Finance stock price today is Rs 105. To understand the functions of the RSD 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 RSD Finance is Rs 7.6215 Cr and the compounded growth of profit in the past 3 years is 32.8736813127924 %. The PAT margin of RSD Finance is 79.6195 %.

• 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 RSD Finance , the EPS grew by 51.4692 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): RSD Finance has a average ROE track record. The ROE of RSD Finance is at 11.0346 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of RSD Finance is worth at the current levels at Rs 105. The stock is trading at a current P/E ratio of 16.6368 and the average historical P/E for the last 5 years was 21.1053513009173.

• P/B ratio can be one of the best metrics to value such companies. Currently, RSD Finance is trading at a P/B of 1.7819 . The average historical P/B of RSD Finance for the last 5 years was 1.40450120310392. 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 RSD Finance is Rs 105. One can use valuation calculators of ticker to know if RSD Finance share price is undervalued or overvalued.