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Last Updated on: 06 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

IIFL Securities Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 5, 2024, 12:34 am

Market Cap 12,223 Cr.
Current Price 396
High / Low407/85.6
Stock P/E19.7
Book Value 58.0
Dividend Yield0.76 %
ROCE34.6 %
ROE32.3 %
Face Value 2.00
PEG Ratio2.37

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

View Share Price Target for IIFL Securities Ltd

Competitors of IIFL Securities Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of IIFL Securities Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales201238251299336347292317342402409507559
Expenses125140153176199221198212226250271348318
Operating Profit76989812313712593104116152138159240
OPM %38%41%39%41%41%36%32%33%34%38%34%31%43%
Other Income141817193215375322723
Interest10141330391819191819213043
Depreciation11111515161716171717161618
Profit before tax68928797113105617585119102140203
Tax %26%16%21%25%24%25%29%26%24%27%27%23%26%
Net Profit5177697286794355658675108151
EPS in Rs1.582.552.272.382.842.601.431.832.122.832.453.524.88

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9338707588411,2951,3611,660
Expenses4914614324877498861,095
Operating Profit441409326354546475564
OPM %47%47%43%42%42%35%34%
Other Income14613427221037
Interest145115103501027789
Depreciation37425546636766
Profit before tax274258301285402341446
Tax %34%34%22%23%24%27%
Net Profit181171234220306250333
EPS in Rs96.4791.587.327.2710.078.1910.92
Dividend Payout %-0%-0%27%14%30%37%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-5.52%36.84%-5.98%39.09%-18.30%
Change in YoY Net Profit Growth (%)0.00%42.37%-42.83%45.07%-57.39%

IIFL Securities Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2018-2019 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:21%
3 Years:38%
TTM:63%
Compounded Profit Growth
10 Years:%
5 Years:24%
3 Years:33%
TTM:121%
Stock Price CAGR
10 Years:%
5 Years:73%
3 Years:58%
1 Year:346%
Return on Equity
10 Years:%
5 Years:25%
3 Years:27%
Last Year:32%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital006461616162
Reserves5606678169071,1211,2891,725
Borrowings1,0977594592926074861,154
Other Liabilities1,2051,6241,0952,2854,2523,4014,934
Total Liabilities2,8623,0502,4343,5446,0415,2377,875
Fixed Assets512393402488482440379
CWIP848613047311
Investments1591402317422890159
Other Assets2,1072,4311,6712,9365,3294,7077,335
Total Assets2,8623,0502,4343,5446,0415,2377,875

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -110587352152795-793-118
Cash from Investing Activity -118021148-86163-74
Cash from Financing Activity 462-494-514-361108-296430
Net Cash Flow23493-141-62817-925239

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow440.00-350.00-133.0062.00-61.00-11.00

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 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days10101615868
Inventory Days
Days Payable
Cash Conversion Cycle10101615868
Working Capital Days-12-282-239-498-891-551-496
ROCE %24%22%25%32%23%35%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters31.38%31.34%31.30%31.29%31.28%31.21%31.14%31.13%31.11%30.97%30.91%30.88%
FIIs16.30%16.48%16.57%16.65%16.57%16.53%16.48%16.33%13.59%15.54%15.18%17.51%
DIIs3.50%3.12%3.16%3.20%3.19%3.17%3.20%3.24%3.31%3.29%3.37%3.18%
Public48.82%49.06%48.97%48.85%48.94%49.07%49.16%49.29%51.99%50.20%50.55%48.43%
No. of Shareholders53,40557,43058,62961,62561,61362,17062,75164,42462,40764,30770,00368,061

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)16.738.2210.096.977.33
Diluted EPS (Rs.)16.408.169.946.917.31
Cash EPS (Rs.)20.3710.3612.158.789.05
Book Value[Excl.RevalReserv]/Share (Rs.)58.0944.1838.8831.9427.52
Book Value[Incl.RevalReserv]/Share (Rs.)58.0944.1838.8831.9427.52
Revenue From Operations / Share (Rs.)70.2044.2540.5526.1122.65
PBDIT / Share (Rs.)30.6815.8218.6512.5511.18
PBIT / Share (Rs.)26.9813.6316.5711.039.45
PBT / Share (Rs.)22.1711.1613.239.399.43
Net Profit / Share (Rs.)16.678.1810.067.277.32
NP After MI And SOA / Share (Rs.)16.648.1910.077.277.32
PBDIT Margin (%)43.6935.7446.0048.0549.34
PBIT Margin (%)38.4330.7940.8542.2541.70
PBT Margin (%)31.5825.2132.6135.9841.64
Net Profit Margin (%)23.7518.4724.8027.8332.31
NP After MI And SOA Margin (%)23.7018.5024.8327.8632.32
Return on Networth / Equity (%)28.6718.5225.8922.7626.59
Return on Capital Employeed (%)44.7529.3040.5033.5231.09
Return On Assets (%)6.504.775.066.219.61
Long Term Debt / Equity (X)0.000.000.000.000.06
Total Debt / Equity (X)0.640.350.510.300.52
Asset Turnover Ratio (%)0.320.220.230.240.24
Current Ratio (X)1.221.231.141.141.22
Quick Ratio (X)1.221.231.141.141.21
Dividend Payout Ratio (NP) (%)18.0136.5529.7813.7427.28
Dividend Payout Ratio (CP) (%)14.7428.8524.6611.3722.07
Earning Retention Ratio (%)81.9963.4570.2286.2672.72
Cash Earning Retention Ratio (%)85.2671.1575.3488.6377.93
Interest Coverage Ratio (X)6.386.405.587.663.50
Interest Coverage Ratio (Post Tax) (X)4.474.314.015.442.29
Enterprise Value (Cr.)464.22-823.88-438.9131.62423.87
EV / Net Operating Revenue (X)0.21-0.60-0.350.030.58
EV / EBITDA (X)0.49-1.70-0.770.081.19
MarketCap / Net Operating Revenue (X)1.751.132.191.791.37
Retention Ratios (%)81.9863.4470.2186.2572.71
Price / BV (X)2.111.132.281.461.13
Price / Net Operating Revenue (X)1.751.132.191.791.37
EarningsYield0.130.160.110.150.23

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of IIFL Securities Ltd as of October 6, 2024 is: ₹371.86

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 October 6, 2024, IIFL Securities Ltd is Overvalued by 6.10% compared to the current share price ₹396.00

Intrinsic Value of IIFL Securities Ltd as of October 6, 2024 is: ₹402.83

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 October 6, 2024, IIFL Securities Ltd is Undervalued by 1.72% compared to the current share price ₹396.00

Last 5 Year EPS CAGR: 8.33%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 23.00%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -424.14, which is a positive sign.
  3. The company has higher reserves (1,012.14 cr) compared to borrowings (693.43 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (486.43 cr) and profit (329.57 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 10.43, which may not be favorable.

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 Securities Ltd:
    1. Net Profit Margin: 23.75%
      • 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: 44.75% (Industry Average ROCE: 0.59%)
      • 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%: 28.67% (Industry Average ROE: 0.49%)
      • 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): 4.47
      • 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: 19.7 (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: 0.64
      • 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 Securities Ltd. is a Public Limited Listed company incorporated on 21/03/1996 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L99999MH1996PLC132983 and registration number is 132983. Currently Company is involved in the business activities of Activities auxiliary to financial service activities. Company’s Total Operating Revenue is Rs. 1060.48 Cr. and Equity Capital is Rs. 60.79 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & InvestmentsIIFL House, Sun Infotech Park, Thane Maharashtra 400604secretarial@iifl.com
http://www.iiflsecurities.com
Management
NamePosition Held
Mr. R VenkataramanChairman & Non-Exe.Director
Mr. H NemkumarManaging Director
Mr. Narendra Deshmal JainWhole Time Director
Ms. Rekha WarriarIndependent Director
Mr. Anand Shailesh BathiyaIndependent Director
Mr. Viswanathan KrishnanIndependent Director
Mr. Shamik Das SharmaIndependent Director

FAQ

What is the latest fair value of IIFL Securities Ltd?

The latest fair value of IIFL Securities Ltd is ₹371.86.

What is the Market Cap of IIFL Securities Ltd?

The Market Cap of IIFL Securities Ltd is 12,223 Cr..

What is the current Stock Price of IIFL Securities Ltd as on 05 October 2024?

The current stock price of IIFL Securities Ltd as on 05 October 2024 is ₹396.

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

In FY 2024, the High / Low of IIFL Securities Ltd stocks is 407/85.6.

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

The Stock P/E of IIFL Securities Ltd is 19.7.

What is the Book Value of IIFL Securities Ltd?

The Book Value of IIFL Securities Ltd is 58.0.

What is the Dividend Yield of IIFL Securities Ltd?

The Dividend Yield of IIFL Securities Ltd is 0.76 %.

What is the ROCE of IIFL Securities Ltd?

The ROCE of IIFL Securities Ltd is 34.6 %.

What is the ROE of IIFL Securities Ltd?

The ROE of IIFL Securities Ltd is 32.3 %.

What is the Face Value of IIFL Securities Ltd?

The Face Value of IIFL Securities 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 Securities 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