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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

IIFL Finance Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 20, 2024, 9:58 pm

Market Cap 17,670 Cr.
Current Price 416
High / Low654/304
Stock P/E11.6
Book Value 285
Dividend Yield0.96 %
ROCE11.8 %
ROE17.8 %
Face Value 2.00
PEG Ratio0.40

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

View Share Price Target for IIFL Finance Ltd

Competitors of IIFL Finance Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Nam Securities Ltd 85.7 Cr. 159198/59.3238 21.20.00 %4.16 %3.05 % 10.0
Naperol Investments Ltd 845 Cr. 1,4702,041/801862 3,2040.00 %0.08 %0.05 % 10.0
Inani Securities Ltd 13.5 Cr. 29.542.0/20.59.28 42.20.00 %10.6 %6.92 % 10.0
HCKK Ventures Ltd 39.4 Cr. 106154/77.4219 11.50.00 %8.17 %6.44 % 10.0
HB Portfolio Ltd 109 Cr. 101177/54.314.7 2790.99 %3.34 %2.90 % 10.0
Industry Average7,087.59 Cr2,428.3777.225,594.830.28%15.23%17.14%7.45

All Competitor Stocks of IIFL Finance Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Revenue1,4661,4891,5981,5141,6681,7981,8731,9312,0262,1212,1812,3002,476
Interest641611681701744773773776776809861888932
Expenses569545619452568646707731709740779822875
Financing Profit256332299361356379393424541571541590669
Financing Margin %17%22%19%24%21%21%21%22%27%27%25%26%27%
Other Income50425017464560442524957158
Depreciation27262928303033343739424243
Profit before tax279348321350372394420434529555594618684
Tax %24%23%23%24%22%21%24%24%25%24%23%24%23%
Net Profit213268248266292310321330397423458473526
EPS in Rs5.627.096.547.017.698.168.458.689.999.9610.8511.1812.44
Gross NPA %2.80%2.14%2.20%2.30%2.79%3.15%2.60%2.42%2.08%1.84%1.84%1.84%
Net NPA %1.30%0.97%1.00%1.10%1.47%1.83%1.15%1.22%1.06%1.08%1.06%1.02%

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Revenue1,8792,6582,8223,5513,9523,1636,4054,9784,8475,9686,9918,4129,604
Interest5151,0001,1691,4451,6901,7862,7302,5932,4132,6383,0113,2453,669
Expenses1,0911,1811,1781,3191,3626892,2211,4351,6822,2392,3552,9363,421
Financing Profit2734774757879006891,4549507521,0901,6252,2312,514
Financing Margin %14%18%17%22%23%22%23%19%16%18%23%27%26%
Other Income7713-483756121279203234271
Depreciation8084685966166732106106122153172
Profit before tax2004004207248431,0481,4481,1307251,0051,5362,1132,612
Tax %32%30%31%34%34%22%30%30%31%24%23%24%
Net Profit1362792914765558221,0217965037611,1881,6082,001
EPS in Rs4.719.229.3914.4216.1521.5824.9124.8913.2620.0631.2939.4447.33
Dividend Payout %32%33%32%21%26%21%20%20%17%15%11%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)105.15%4.30%63.57%16.60%48.11%24.21%-22.04%-36.81%51.29%56.11%35.35%
Change in YoY Net Profit Growth (%)0.00%-100.85%59.27%-46.98%31.51%-23.90%-46.25%-14.77%88.10%4.82%-20.76%

IIFL Finance Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:14%
5 Years:16%
3 Years:21%
TTM:18%
Compounded Profit Growth
10 Years:20%
5 Years:19%
3 Years:32%
TTM:-10%
Stock Price CAGR
10 Years:17%
5 Years:24%
3 Years:10%
1 Year:-28%
Return on Equity
10 Years:17%
5 Years:17%
3 Years:19%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital59596263646464767676767685
Reserves1,9002,0932,4963,2894,3184,6794,2904,6845,3126,3888,91610,56112,019
Borrowings9,57510,51614,63915,94824,33034,32626,51727,99632,58336,08640,01747,16140,033
Other Liabilities1,5701,8462,2213,5665,0495,4262,3681,6172,6963,3603,9934,6223,236
Total Liabilities13,10414,51419,41822,86633,76144,49533,23934,37340,66745,91053,00262,42055,372
Fixed Assets465472500533656871369607675775862905928
CWIP1424106711107276285258
Investments1,1291,0121,2831,8674,1532,150212770321,1923,5114,0593,839
Other Assets11,49613,00617,62420,46128,88141,36532,65132,99439,95443,93748,60257,40350,547
Total Assets13,10414,51419,41822,86633,76144,49533,23934,37340,66745,91053,00262,42055,372

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-1,905-63-2,126-54-4,329-10,4834221,101-3,5871,784-5,225-5,848
Cash from Investing Activity +-33360-361-671-2,602-374562-919236-996-2,716-1,356
Cash from Financing Activity +2,776172,9045259,0948,468201094,4282,7815,3616,042
Net Cash Flow53814417-2002,162-2,3891,0042901,0773,569-2,580-1,162

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow1.00-8.00-9.00-13.00-14.00665.00-32.00-25.00-26.00-30.00-34.00-38.00

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
ROE %15%14%19%17%18%17%16%11%15%20%19%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters24.93%24.93%24.91%24.90%24.89%24.88%24.85%24.84%24.81%24.80%24.78%24.92%
FIIs24.72%21.12%20.66%23.05%25.57%27.79%28.09%28.63%28.31%31.27%29.14%30.31%
DIIs0.73%0.79%1.04%2.71%3.41%3.90%4.04%5.54%7.30%8.27%8.59%7.43%
Public49.62%53.16%53.39%49.34%46.12%43.43%43.01%40.98%39.59%35.67%37.47%37.35%
No. of Shareholders46,69559,66163,44977,38673,44667,86867,46865,44067,66083,6761,49,3091,45,073

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Mirae Asset Banking and Financial Services Fund564,2972.4234.9756,6282024-11-20896.5%
L&T Flexicap Fund - Regular Plan825,0001.234.6456,6282024-11-201356.88%
Nippon India Nifty Smallcap 250 Index Fund118,6180.877.2256,6282024-11-20109.47%
Navi Large & Midcap Fund - Regular Plan83,0001.885.0556,6282024-11-2046.57%
Motilal Oswal Nifty Smallcap 250 Index Fund72,4810.864.4156,6282024-11-2027.99%
Navi Flexi Cap Fund72,0001.844.3856,6282024-11-2027.15%
SBI Nifty Smallcap 250 Index Fund56,6280.863.4556,6282024-11-200%
Motilal Oswal Nifty 500 Index Fund7,9090.080.4856,6282024-11-20-86.03%
Edelweiss Nifty Smallcap 250 Index Fund2,9730.860.1856,6282024-11-20-94.75%
Groww Nifty Total Market Index Fund5270.080.0356,6282024-11-20-99.07%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)46.2939.4931.3320.0913.27
Diluted EPS (Rs.)45.7139.1831.1420.0413.24
Cash EPS (Rs.)56.4846.2634.5122.8616.10
Book Value[Excl.RevalReserv]/Share (Rs.)315.97268.16170.44142.37125.96
Book Value[Incl.RevalReserv]/Share (Rs.)315.97268.16170.44142.37125.96
Revenue From Operations / Share (Rs.)268.63217.08180.09154.15125.26
PBDIT / Share (Rs.)173.91144.22122.4698.6285.31
PBIT / Share (Rs.)169.17140.21119.2695.8382.52
PBT / Share (Rs.)67.4155.5340.4626.5219.17
Net Profit / Share (Rs.)51.7442.2531.3020.0813.31
NP After MI And SOA / Share (Rs.)46.2239.4331.2920.0613.26
PBDIT Margin (%)64.7466.4367.9963.9768.10
PBIT Margin (%)62.9764.5866.2162.1765.87
PBT Margin (%)25.0925.5722.4617.2015.30
Net Profit Margin (%)19.2619.4617.3813.0210.62
NP After MI And SOA Margin (%)17.2018.1617.3713.0110.58
Return on Networth / Equity (%)16.5816.6818.3714.1010.54
Return on Capital Employeed (%)52.0924.4226.4822.1820.58
Return On Assets (%)2.822.832.581.861.46
Long Term Debt / Equity (X)0.001.241.611.972.15
Total Debt / Equity (X)4.394.405.535.995.67
Asset Turnover Ratio (%)0.170.110.120.120.09
Current Ratio (X)1.221.651.541.611.73
Quick Ratio (X)1.221.651.541.611.73
Dividend Payout Ratio (NP) (%)10.3311.5711.1814.9316.28
Dividend Payout Ratio (CP) (%)9.3710.5010.1413.1113.45
Earning Retention Ratio (%)89.6788.4388.8285.0783.72
Cash Earning Retention Ratio (%)90.6389.5089.8686.8986.55
Interest Coverage Ratio (X)1.711.701.551.421.35
Interest Coverage Ratio (Post Tax) (X)1.511.501.401.291.21
Enterprise Value (Cr.)56843.7253544.8038394.6238123.8926587.71
EV / Net Operating Revenue (X)5.556.485.626.535.61
EV / EBITDA (X)8.579.768.2610.208.24
MarketCap / Net Operating Revenue (X)1.272.251.581.820.59
Retention Ratios (%)89.6688.4288.8185.0683.71
Price / BV (X)1.222.071.671.980.59
Price / Net Operating Revenue (X)1.272.251.581.820.59
EarningsYield0.130.080.100.070.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of IIFL Finance Ltd as of November 21, 2024 is: 594.12

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.

As of November 21, 2024, IIFL Finance Ltd is Undervalued by 42.82% compared to the current share price 416.00

Intrinsic Value of IIFL Finance Ltd as of November 21, 2024 is: 766.29

Calculation basis:

  • Intrinsic 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.

As of November 21, 2024, IIFL Finance Ltd is Undervalued by 84.20% compared to the current share price 416.00

Last 5 Year EPS CAGR: 28.98%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

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 IIFL Finance Ltd:
    1. Net Profit Margin: 19.26%
      • 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: 52.09% (Industry Average ROCE: 15.23%)
      • 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%: 16.58% (Industry Average ROE: 17.14%)
      • 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): 1.51
      • 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: 1.22
      • 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: 11.6 (Industry average Stock P/E: 77.22)
      • 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: 4.39
      • 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

IIFL Finance Ltd. is a Public Limited Listed company incorporated on 18/10/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L67100MH1995PLC093797 and registration number is 093797. Currently Company is involved in the business activities of Other credit granting. Company’s Total Operating Revenue is Rs. 4062.31 Cr. and Equity Capital is Rs. 75.92 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Non-Banking Financial Company (NBFC)IIFL House, Sun Infotech Park, Road No. 16V, Plot No. B-23, Thane Maharashtra 400604shareholders@iifl.com
https://www.iifl.com
Management
NamePosition Held
Mr. Arun Kumar PurwarChairperson & Non Executive Director
Mr. Nirmal JainManaging Director
Mr. R VenkataramanJoint Managing Director
Mr. Gopalakrishnan SoundarajanNon Executive Director
Mr. T S RamakrishnanNon Exe. & Nominee Director
Mr. Ramakrishnan SubramanianIndependent Director
Ms. Geeta MathurIndependent Director
Mr. Bijou KurienIndependent Director
Mr. Nihar Niranjan JambusariaIndependent Director

FAQ

What is the latest intrinsic value of IIFL Finance Ltd?

The latest intrinsic value of IIFL Finance Ltd as on 21 November 2024 is ₹594.12, which is 42.82% higher than the current market price of ₹416.00.

What is the Market Cap of IIFL Finance Ltd?

The Market Cap of IIFL Finance Ltd is 17,670 Cr..

What is the current Stock Price of IIFL Finance Ltd as on 21 November 2024?

The current stock price of IIFL Finance Ltd as on 21 November 2024 is ₹416.

What is the High / Low of IIFL Finance Ltd stocks in FY 2024?

In FY 2024, the High / Low of IIFL Finance Ltd stocks is 654/304.

What is the Stock P/E of IIFL Finance Ltd?

The Stock P/E of IIFL Finance Ltd is 11.6.

What is the Book Value of IIFL Finance Ltd?

The Book Value of IIFL Finance Ltd is 285.

What is the Dividend Yield of IIFL Finance Ltd?

The Dividend Yield of IIFL Finance Ltd is 0.96 %.

What is the ROCE of IIFL Finance Ltd?

The ROCE of IIFL Finance Ltd is 11.8 %.

What is the ROE of IIFL Finance Ltd?

The ROE of IIFL Finance Ltd is 17.8 %.

What is the Face Value of IIFL Finance Ltd?

The Face Value of IIFL Finance Ltd is 2.00.

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 IIFL Finance 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