💼 At a Glance
Master Trust Ltd isn’t your usual Angel One or Motilal Oswal. It’s an all-in-one financial supermarket — NBFC, broking, insurance, depository, and wealth — but without the celebrity marketing budgets. And yet, it has clocked a 60% profit CAGR over 5 years, an ROE of 23%, and 43% OPMs.
Market cap? Just ₹1,600 Cr.
Stock P/E? Barely 12.5x.
Undervalued? Or undiscovered for a reason?
Let’s open the (master) account.
1. 🎯 Introduction with Hook
What if I told you there’s a fully profitable financial conglomerate hiding behind a Punjabi name and no ads?
That’s Master Trust. While others chase flashy fintechs, this one’s quietly built:
- A profitable lending book
- A full-fledged stockbroking + DP biz
- Merchant banking + insurance licenses
- 43% operating margins
- 5-year sales CAGR of 34%
The only thing they haven’t built? Awareness.
2. 🏦 Business Model: WTF Do They Even Do?
Master Trust operates a multi-vertical financial platform:
- 📈 Stock Broking (NSE, BSE, MCX)
- 💳 Depository Participant (NSDL & CDSL)
- 🧾 NBFC Lending – unsecured + LAS
- 🛡️ Insurance Broking
- 💼 Merchant Banking
- 💰 Mutual Fund Distribution & Wealth Advisory
Everything that Zerodha, Angel One, and Motilal do — Master does too. Quietly.
They don’t shout, they compound.
3. 📊 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 225 | 331 | 339 | 500 | 584 |
| Net Profit (₹ Cr) | 34 | 55 | 66 | 108 | 131 |
| OPM % | 28% | 33% | 35% | 41% | 42.6% |
| ROE % | 19% | 29% | 25% | 33% | 23% |
| ROCE % | 19% | 29% | 25% | 33% | 30.1% |
📈 5-Year CAGR:
- Sales: 34%
- Profit: 60.5%
- EPS: 11.7
📉 FY25 growth slowed to 17% revenue, 21% profit — still solid in a cooling market.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹146
- EPS (TTM): ₹11.69
- P/E: 12.5x
- P/B: 2.58x
- Market Cap: ₹1,644 Cr
🧮 Fair Value Range Estimate:
Assuming 16–18x on ₹11.69 EPS = ₹187 – ₹210
👉 Currently trading at a ~30% discount to fair value.
5. 🔥 What’s Cooking – News, Triggers, Drama
- 📰 Consistent profit beat for 3 years
- 📈 Margins up to 43% in latest Q
- 💸 Net Profit ₹131 Cr in FY25 – all-time high
- 🤝 Re-appointed internal auditor (May 2025) – compliance strong
- 🚩 Promoter stake fell from 74.8% to 72.5% over 2 years – minor, but worth tracking
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net Worth (₹ Cr) | 365 | 504 | 638 |
| Borrowings (₹ Cr) | 162 | 187 | 258 |
| D/E Ratio | 0.44x | 0.37x | 0.40x |
| Total Assets (₹ Cr) | 1,233 | 1,785 | 1,953 |
Solid growth, low leverage. Reserves expanding fast.
7. 💰 Cash Flow – Sab Number Game Hai
| Metric | FY24 | FY25 |
|---|---|---|
| Cash from Ops (₹ Cr) | ₹458 | -₹37 |
| Capex (CFI) (₹ Cr) | -₹493 | ₹54 |
| Net Cash Flow | -₹10 | ₹35 |
⚠️ FY24 saw large investments (maybe in lending books or infra), FY25 back to positive.
8. 📉 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| OPM % | 42.6% |
| ROE % | 23% |
| ROCE % | 30.1% |
| Debtor Days | 100 |
| CCC | 100 |
✅ Very high profitability
❗ Debtor days rising (from 53 → 91 → 100) — lending book expansion?
9. 🧾 P&L Breakdown – Show Me the Money
- FY25 Revenue: ₹584 Cr
- Operating Profit: ₹243 Cr
- Net Profit: ₹131 Cr
- EPS: ₹11.69
- Dividend: Still 0% payout
🧊 Time to pay shareholders?
10. ⚔️ Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM % | Mcap (₹ Cr) |
|---|---|---|---|---|
| Angel One | 22.5 | 27% | 37% | 26,300+ |
| IIFL Securities | 15.1 | 33% | 41% | 10,700 |
| Share India | 11.9 | 16% | 35% | 3,900 |
| Master Trust | 12.5 | 23% | 42.6% | 1,644 |
✅ Master Trust is punching above its weight — high margin, mid-tier ROE
📉 Market hasn’t re-rated it yet
11. 🧍 Miscellaneous – Shareholding, Promoters
- Promoter Holding: 72.49%
- FIIs: 0.02%
- DIIs: 0%
- Public: 27.5%
- Shareholders: 10,349 (up from 2,800 in 2 years)
📢 Clearly retail is waking up to the story
12. 🧠 EduInvesting Verdict™
Master Trust is the kind of company that makes analysts go: “Wait, this exists?”
✅ Ultra-consistent profit growth
✅ Operating margins better than even the biggies
✅ Trades at just 12.5x
✅ ROE north of 20%, D/E under 0.5x
🚩 Slight concern over debtor days and promoter stake dilution
🚩 No dividends despite 5 years of profits
🎯 Fair Value Range: ₹187 – ₹210
Verdict™:
Master Trust is the “Chandigarh Angel One” — no influencers, just profits.
If you’re into value unlocking, this is one broking stock worth logging in to.
✍️ Written by Prashant | 📅 June 28, 2025
Tags: Master Trust, stockbroking stocks, NBFC, Angel One competitor, financial services smallcap, multibagger, FY25 results, ROE kings
