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Last Updated on: 08 September, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of Edelweiss Financial Services Ltd

Share Price and Basic Stock Data

Last Updated: September 6, 2024, 11:56 pm

Market Cap 11,160 Cr.
Current Price 118
High / Low125/52.0
Stock P/E26.0
Book Value 50.5
Dividend Yield1.27 %
ROCE11.5 %
ROE7.31 %
Face Value 1.00
PEG Ratio0.28

Data Source: screener.in

Stock P/E, Current Price, and Intrinsic Value Over Time

Competitors of Edelweiss Financial Services Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0%0%0

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales2,2232,1793,0581,6331,8211,6031,9111,1732,0912,1493,0121,9792,156
Expenses1,2821,3462,8788581,0651,0251,1085841,4181,3992,2091,2621,366
Operating Profit941832180775756578803589672749803717790
OPM %42%38%6%47%42%36%42%50%32%35%27%36%37%
Other Income34131,423376830738125466151179
Interest949925958802748704729626646646656680662
Depreciation57559036365326323026503031
Profit before tax-31-135555-264012786564313814824106
Tax %-80%53%-15%198%-62%40%47%36%-80%12%-16%-224%11%
Net Profit-56-636372565764535771221727895
EPS in Rs-0.52-0.756.720.190.610.750.450.280.711.071.580.540.81

Last Updated: August 9, 2024, 6:38 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: August 9, 2024, 6:38 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,6672,1792,5353,8875,2566,6048,87811,0789,54410,7757,1518,5009,296
Expenses5997609381,4811,9872,7593,5924,5077,0346,6093,9475,6676,236
Operating Profit1,0671,4191,5972,4063,2693,8455,2866,5712,5104,1663,2042,8333,059
OPM %64%65%63%62%62%58%60%59%26%39%45%33%33%
Other Income3557121542885974158264139
Interest8301,1131,2111,8322,6202,8103,8764,7834,7933,8342,9842,5752,644
Depreciation4251527290106104132232260151138137
Profit before tax1992593395105719431,3491,744-2,457146227385417
Tax %34%34%40%40%41%42%38%40%17%-74%7%-5%
Net Profit1311712173263835638371,044-2,044254212406466
EPS in Rs1.692.342.864.155.097.329.4310.67-21.892.842.003.654.00
Dividend Payout %36%26%24%24%25%18%14%12%0%49%69%39%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)30.53%26.90%50.23%17.48%47.00%48.67%24.73%-295.79%112.43%-16.54%91.51%
Change in YoY Net Profit Growth (%)0.00%-3.63%23.33%-32.75%29.51%1.67%-23.94%-320.52%408.21%-128.96%108.04%

Edelweiss Financial Services Ltd Growth

Compounded Sales Growth
10 Years:14%
5 Years:-3%
3 Years:-4%
TTM:12%
Compounded Profit Growth
10 Years:7%
5 Years:-16%
3 Years:18%
TTM:22%
Stock Price CAGR
10 Years:7%
5 Years:-8%
3 Years:10%
1 Year:37%
Return on Equity
10 Years:4%
5 Years:-3%
3 Years:5%
Last Year:7%

Last Updated: July 9, 2024, 4:57 pm

Balance Sheet

Last Updated: August 9, 2024, 6:38 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital727779818387898989909090
Reserves2,3862,8133,0813,5934,2466,7967,5886,0406,4886,4486,6544,672
Borrowings11,53412,94823,54027,77333,37948,96446,14836,65728,43622,76821,79120,358
Other Liabilities2,2382,3523,7805,5377,1157,47310,07611,23011,12113,75815,34617,799
Total Liabilities16,22918,19030,48136,98544,82363,32163,90054,01646,13443,06343,88242,920
Fixed Assets4964815596646371,0551,2652,3451,7811,5971,3671,322
CWIP253106301014244431320254
Investments1,2112,1262,7922,6966,8787,88712,71310,01212,88214,13917,16218,491
Other Assets14,52015,53027,02333,59437,20854,33649,87941,61531,45827,30725,32723,102
Total Assets16,22918,19030,48136,98544,82363,32163,90054,01646,13443,06343,88242,920

Reserves and Borrowings Chart

Edelweiss Financial Services Ltd Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -151-9,183-3,762-497-12,9695,68512,0983,4585,5921,7202,894
Cash from Investing Activity -1,026-867-62-4,323-530-1,3121994,085-1,058746-482
Cash from Financing Activity 1,26310,0193,8025,11214,868-3,665-10,471-8,587-6,444-1,708-2,785
Net Cash Flow87-31-222921,3697081,827-1,044-1,910757-373

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow1.00-10.00-11.00-21.00-24.00-30.00-43.00-40.00-34.00-24.00-19.00-19.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days2761413661124915017241814
Inventory Days
Days Payable
Cash Conversion Cycle2761413661124915017241814
Working Capital Days8809431,1151,011750165-140-238-221-479-472-491
ROCE %10%10%11%11%11%11%12%5%10%10%10%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters32.82%32.63%32.62%32.62%32.62%32.62%32.62%32.78%32.77%32.75%32.75%32.75%
FIIs31.77%32.24%30.98%30.07%31.51%32.06%32.22%31.36%31.29%30.51%28.89%28.32%
DIIs3.18%2.65%2.65%2.66%2.66%2.67%2.68%2.62%2.62%2.68%2.70%2.69%
Public27.45%27.72%28.98%29.88%28.44%27.88%27.74%28.49%28.55%29.29%30.90%31.47%
Others4.79%4.76%4.76%4.76%4.76%4.76%4.76%4.76%4.76%4.76%4.76%4.76%
No. of Shareholders2,20,8722,18,5052,22,0822,25,7872,22,9602,16,4502,13,5762,20,9072,23,7162,40,6182,31,2902,39,237

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund542,6130.733.361,2352024-09-0543836.28%
Groww Nifty Total Market Index Fund1,2350.020.011,2352024-09-050%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)4.683.832.112.98-23.01
Diluted EPS (Rs.)4.683.832.112.97-23.01
Cash EPS (Rs.)7.284.592.975.77-20.37
Book Value[Excl.RevalReserv]/Share (Rs.)67.3087.3484.5386.1781.02
Book Value[Incl.RevalReserv]/Share (Rs.)67.3087.3484.5386.1781.02
Revenue From Operations / Share (Rs.)105.6894.4076.95105.03106.95
PBDIT / Share (Rs.)37.2733.0136.3647.5928.88
PBIT / Share (Rs.)35.8631.4734.6844.6826.27
PBT / Share (Rs.)4.872.821.461.64-27.62
Net Profit / Share (Rs.)5.873.051.282.86-22.98
NP After MI And SOA / Share (Rs.)4.683.832.102.98-22.99
PBDIT Margin (%)35.2634.9647.2545.3127.00
PBIT Margin (%)33.9333.3345.0642.5324.55
PBT Margin (%)4.602.981.891.56-25.82
Net Profit Margin (%)5.553.221.662.72-21.48
NP After MI And SOA Margin (%)4.424.052.732.83-21.49
Return on Networth / Equity (%)8.835.102.884.03-33.37
Return on Capital Employeed (%)20.7718.388.6512.556.79
Return On Assets (%)0.980.780.430.57-3.76
Long Term Debt / Equity (X)0.000.002.612.893.81
Total Debt / Equity (X)4.253.223.474.325.98
Asset Turnover Ratio (%)0.210.190.030.010.01
Current Ratio (X)1.391.385.392.932.49
Quick Ratio (X)1.391.295.182.822.40
Dividend Payout Ratio (NP) (%)0.000.0037.5831.74-1.30
Dividend Payout Ratio (CP) (%)0.000.0020.8716.03-1.46
Earning Retention Ratio (%)0.000.0062.4268.26101.30
Cash Earning Retention Ratio (%)0.000.0079.1383.97101.46
Interest Coverage Ratio (X)1.201.151.091.110.53
Interest Coverage Ratio (Post Tax) (X)1.191.111.041.070.57
Enterprise Value (Cr.)23922.4423852.0025999.4230432.8932519.58
EV / Net Operating Revenue (X)2.522.813.763.253.42
EV / EBITDA (X)7.148.047.967.1812.66
MarketCap / Net Operating Revenue (X)0.600.550.760.600.35
Retention Ratios (%)0.000.0062.4168.25101.30
Price / BV (X)1.200.690.800.860.55
Price / Net Operating Revenue (X)0.600.550.760.600.35
EarningsYield0.070.070.030.04-0.60

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹97.20

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Overvalued: 17.63% compared to the current price ₹118.00

Intrinsic Value: 187.75

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 59.11% compared to the current price ₹118.00

Last 5 Year EPS CAGR: 93.16%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (6.23 cr) and profit (307.38 cr) over the years.
  1. The stock has a low average ROCE of 10.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 58.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 47.00, which may not be favorable.
  4. The company has higher borrowings (27,858.00) compared to reserves (5,067.08), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Edelweiss Financial Services Ltd:
    1. Net Profit Margin: 5.55%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 20.77% (Industry Average ROCE: 0%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 8.83% (Industry Average ROE: 0%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.19
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.39
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 26 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 4.25
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Edelweiss Financial Services Ltd. is a Public Limited Listed company incorporated on 21/11/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L99999MH1995PLC094641 and registration number is 094641. Currently Company is involved in the business activities of Activities of holding companies. Company’s Total Operating Revenue is Rs. 836.45 Cr. and Equity Capital is Rs. 89.82 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & InvestmentsEdelweiss House, Off. C.S.T. Road, Mumbai Maharashtra 400098efsl.shareholders@edelweissfin.com
http://www.edelweissfin.com
Management
NamePosition Held
Mr. Rashesh ShahChairman & Managing Director
Mr. Venkatchalam RamaswamyVice Chairman & Exe.Director
Mr. Himanshu KajiExecutive Director
Ms. Vidya ShahNon Exe.Non Ind.Director
Mr. Shiva KumarIndependent Director
Mr. Biswamohan MahapatraIndependent Director
Mr. Ashok KiniIndependent Director
Dr. Ashima GoyalIndependent Director

FAQ

What is the latest fair value of Edelweiss Financial Services Ltd?

The latest fair value of Edelweiss Financial Services Ltd is ₹97.20.

What is the Market Cap of Edelweiss Financial Services Ltd?

The Market Cap of Edelweiss Financial Services Ltd is 11,160 Cr..

What is the current Stock Price of Edelweiss Financial Services Ltd as on 08 September 2024?

The current stock price of Edelweiss Financial Services Ltd as on 08 September 2024 is 118.

What is the High / Low of Edelweiss Financial Services Ltd stocks in FY 2024?

In FY 2024, the High / Low of Edelweiss Financial Services Ltd stocks is 125/52.0.

What is the Stock P/E of Edelweiss Financial Services Ltd?

The Stock P/E of Edelweiss Financial Services Ltd is 26.0.

What is the Book Value of Edelweiss Financial Services Ltd?

The Book Value of Edelweiss Financial Services Ltd is 50.5.

What is the Dividend Yield of Edelweiss Financial Services Ltd?

The Dividend Yield of Edelweiss Financial Services Ltd is 1.27 %.

What is the ROCE of Edelweiss Financial Services Ltd?

The ROCE of Edelweiss Financial Services Ltd is 11.5 %.

What is the ROE of Edelweiss Financial Services Ltd?

The ROE of Edelweiss Financial Services Ltd is 7.31 %.

What is the Face Value of Edelweiss Financial Services Ltd?

The Face Value of Edelweiss Financial Services Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Edelweiss Financial Services Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE