BSE:539844

Stock Analysis Report

Executive Summary

Equitas Holdings Limited, through its subsidiaries, operates as a non-banking financial institution in India.

Snowflake

Fundamentals

High growth potential with adequate balance sheet.

Risks

  • Equitas Holdings has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Equitas Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-9.1%

BSE:539844

-3.6%

IN Consumer Finance

-2.1%

IN Market


1 Year Return

-29.1%

BSE:539844

-3.2%

IN Consumer Finance

-14.7%

IN Market

539844 underperformed the Consumer Finance industry which returned -3.1% over the past year.

539844 underperformed the Market in India which returned -14.6% over the past year.


Share holder returns

539844IndustryMarket
7 Day-9.1%-3.6%-2.1%
30 Day-9.3%1.9%-3.9%
90 Day-25.5%-10.2%-10.1%
1 Year-29.1%-29.1%-2.5%-3.2%-12.9%-14.7%
3 Year-43.0%-43.2%59.3%56.0%17.7%11.5%
5 Yearn/a233.9%218.2%35.4%22.5%

Price Volatility Vs. Market

How volatile is Equitas Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Equitas Holdings undervalued based on future cash flows and its price relative to the stock market?

16.01x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Equitas Holdings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Equitas Holdings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Equitas Holdings is overvalued based on earnings compared to the IN Consumer Finance industry average.

Equitas Holdings is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Equitas Holdings is good value based on expected growth next year.


Price Based on Value of Assets

Equitas Holdings is overvalued based on assets compared to the IN Consumer Finance industry average.


Next Steps

Future Growth

How is Equitas Holdings expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

37.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Equitas Holdings's revenue is expected to grow significantly at over 20% yearly.

Equitas Holdings's earnings are expected to grow significantly at over 20% yearly.

Equitas Holdings's revenue growth is expected to exceed the India market average.

Equitas Holdings's earnings growth is expected to exceed the India market average.

Equitas Holdings's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Equitas Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Equitas Holdings performed over the past 5 years?

2.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Equitas Holdings's year on year earnings growth rate has been positive over the past 5 years.

Equitas Holdings's 1-year earnings growth exceeds its 5-year average (325.1% vs 2.7%)

Equitas Holdings's earnings growth has exceeded the IN Consumer Finance industry average in the past year (325.1% vs 15%).


Return on Equity

Equitas Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Equitas Holdings used its assets less efficiently than the IN Consumer Finance industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Equitas Holdings improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Equitas Holdings's financial position?


Financial Position Analysis

Equitas Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Equitas Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Equitas Holdings's level of debt (162.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (281.8% vs 162.5% today).

Debt is well covered by operating cash flow (46.1%, greater than 20% of total debt).

Unable to confirm if the interest payments on Equitas Holdings's debt are well covered by earnings due to lack of past financial data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.6x debt.


Next Steps

Dividend

What is Equitas Holdings's current dividend yield, its reliability and sustainability?

1.24%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Equitas Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Equitas Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Equitas Holdings has not reported any payouts.

Unable to verify if Equitas Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Equitas Holdings has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Equitas Holdings's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

S. Bhaskar (61yo)

2.8yrs

Tenure

₹6,326,000

Compensation

Mr. S. Bhaskar, B.Sc, ACA, has been the Chief Executive Officer of Equitas Holdings Limited since October 21, 2016. Mr. Bhaskar served as Chief Financial Officer at Equitas Micro Finance Limited. He served ...


CEO Compensation Analysis

S.'s remuneration is lower than average for companies of similar size in India.

S.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

53yo

Average Age

The tenure for the Equitas Holdings management team is about average.


Board Age and Tenure

6.3yrs

Average Tenure

68yo

Average Age

The tenure for the Equitas Holdings board of directors is about average.


Insider Trading

Equitas Holdings individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹8,619,67819 Jun 19
H. K. Raghavan
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Equitas Micro Finance Limited
Shares61,200
Max Price₹140.84
Sell₹2,655,75912 Mar 19
B. Mohanan
EntityIndividual
Shares20,638
Max Price₹129.81
Sell₹561,48612 Mar 19
B. Mohanan
EntityIndividual
Shares4,362
Max Price₹128.72
Sell₹2,673,28905 Mar 19
Ajit Balakrishnan
EntityIndividual
Shares23,000
Max Price₹116.23
Buy₹1,474,03228 Jan 19
D. Boopalan
EntityIndividual
Shares11,870
Max Price₹141.78
Sell₹538,64028 Jan 19
D. Boopalan
EntityIndividual
Shares4,500
Max Price₹131.07
Sell₹1,871,99924 Dec 18
B. Mohanan
EntityIndividual
Shares15,600
Max Price₹120.00
Sell₹287,85605 Dec 18
C. Prabhudas
EntityIndividual
Shares2,465
Max Price₹122.00
Sell₹908,11629 Nov 18
Ramakrishna Mahamkali
EntityIndividual
Shares7,320
Max Price₹131.61
Sell₹3,245,27407 Nov 18
P. Selvamani
EntityIndividual
Shares36,325
Max Price₹90.00
Buy₹19,799,99801 Nov 18
H. K. Raghavan
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Equitas Micro Finance Limited
Shares200,000
Max Price₹99.00
Sell₹16,395,27101 Nov 18
H. K. Raghavan
EntityIndividual
Role
Unit CEO
Chief Executive Officer of Equitas Micro Finance Limited
Shares200,000
Max Price₹81.98
Sell₹1,374,80215 Oct 18
A. Balasubramanian
EntityIndividual
Shares12,892
Max Price₹106.64
Sell₹662,89215 Oct 18
A. Balasubramanian
EntityIndividual
Shares5,972
Max Price₹111.00

Ownership Breakdown


Management Team

  • S. Bhaskar (61yo)

    CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: ₹6.33m
  • Vakkalanka Murthy (53yo)

    Chief Executive Officer of Equitas Finance Limited

    • Tenure: 4.6yrs
  • S. Muralidharan

    Group Head of Human Resources

    • Tenure: 5.3yrs
  • H. K. Raghavan (54yo)

    Chief Executive Officer of Equitas Micro Finance Limited

    • Tenure: 4.5yrs
  • A. Alex

    Group Head of Social Initiatives

    • Tenure: 0.0yrs
  • Srimathy Raghunathan (36yo)

    Chief Financial Officer

    • Tenure: 2.0yrs
    • Compensation: ₹1.62m
  • M. Natarajan

    Executive VP & Head of Treasury - Equitas Small Finance Bank Ltd.

    • Tenure: 0.0yrs
  • Deepti R. (28yo)

    Company Secretary

    • Tenure: 0.8yrs
    • Compensation: ₹749.46k

Board Members

  • Rangachary Nambiar Iyengar (81yo)

    Independent Non Executive Chairman

    • Tenure: 12.1yrs
    • Compensation: ₹666.87k
  • S. Bhaskar (61yo)

    CEO & Executive Director

    • Tenure: 2.8yrs
    • Compensation: ₹6.33m
  • Jayshree Vyas (65yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: ₹595.94k
  • Viswanatha Subbaraman (52yo)

    Non-Executive & Independent Director

    • Tenure: 1.8yrs
    • Compensation: ₹931.40k
  • P. Rajaraman (75yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: ₹220.94k
  • Arun Ramanathan (70yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: ₹425.00k
  • J. Chandrasekaran (68yo)

    Non-Executive Independent Director

    • Tenure: 0.0yrs

Company Information

Equitas Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Equitas Holdings Limited
  • Ticker: 539844
  • Exchange: BSE
  • Founded: 2007
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹34.895b
  • Shares outstanding: 341.61m
  • Website: https://www.equitas.in

Number of Employees


Location

  • Equitas Holdings Limited
  • 410A, Spencer Plaza
  • 4th Floor
  • Chennai
  • Tamil Nadu
  • 600002
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539844BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2016
EQUITASNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2016

Biography

Equitas Holdings Limited, through its subsidiaries, operates as a non-banking financial institution in India. The company operates in Banking and Finance, and Others segments. It accepts current and saving ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 13:05
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.