BSE:539844

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

High growth potential with acceptable track record.


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

Stable Share Price: 539844 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.2%

539844

-2.8%

IN Consumer Finance

-3.9%

IN Market


1 Year Return

0.2%

539844

49.0%

IN Consumer Finance

4.5%

IN Market

Return vs Industry: 539844 underperformed the Indian Consumer Finance industry which returned 51.3% over the past year.

Return vs Market: 539844 underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

539844IndustryMarket
7 Day-0.2%-2.8%-3.9%
30 Day1.7%9.1%-3.9%
90 Day7.7%13.8%-2.1%
1 Year0.2%0.2%50.0%49.0%6.4%4.5%
3 Year-34.2%-34.4%144.0%138.7%19.4%12.8%
5 Yearn/a257.0%241.4%28.2%16.6%

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 compared to its fair value and its price relative to the market?

16.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 539844 (₹113.85) is trading above our estimate of fair value (₹87.62)

Significantly Below Fair Value: 539844 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 539844 is poor value based on its PE Ratio (16.8x) compared to the Consumer Finance industry average (14.6x).

PE vs Market: 539844 is poor value based on its PE Ratio (16.8x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 539844 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 539844 is overvalued based on its PB Ratio (1.5x) compared to the IN Consumer Finance industry average (0.7x).


Next Steps

Future Growth

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

39.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539844's forecast earnings growth (39.5% per year) is above the savings rate (6.5%).

Earnings vs Market: 539844's earnings (39.5% per year) are forecast to grow faster than the Indian market (20.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 539844's revenue (23.9% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 539844's revenue (23.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 539844's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has Equitas Holdings performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539844 has a large one-off loss of ₹1.0B impacting its December 31 2019 financial results.

Growing Profit Margin: 539844's current net profit margins (14.1%) are lower than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: 539844's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: 539844's earnings growth over the past year (27.1%) exceeds its 5-year average (5.7% per year).

Earnings vs Industry: 539844 earnings growth over the past year (27.1%) exceeded the Consumer Finance industry 14.2%.


Return on Equity

High ROE: 539844's Return on Equity (9.1%) is considered low.


Next Steps

Financial Health

How is Equitas Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 539844 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 539844's debt is covered by short term assets (assets are 3.3x debt).


Financial Institutions Analysis

Asset Level: 539844's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 539844 has a sufficient allowance for bad loans.

Low Risk Liabilities: 539844 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 539844 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 539844 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 539844 has an appropriate level of bad loans.


Next Steps

Dividend

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

1.40%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 539844's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 539844's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 539844's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 539844's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 539844's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

A. Alex 0

0.3yrs

Tenure

Mr. A. John Alex serves as Executive Director and Chief Executive Officer of Equitas Holdings Limited since November 8, 2019. He serves as Executive Vice President of Inclusive Banking at Equitas Micro Fin ...


Leadership Team

NamePositionTenureCompensationOwnership
Srimathy Raghunathan
Chief Financial Officer2.5yrs₹1.62m0.00035% 137.0k
Deepti R.
Company Secretary1.3yrs₹749.46kno data
A. Alex
CEO & Director0.3yrsno datano data
Murali Vaidyanathan
President and Country Head of Branch Banking0yrsno datano data
Dheeraj Mohan
Head of Strategy0yrsno datano data
S. Muralidharan
Group Head of Human Resources5.8yrsno datano data
H. K. Raghavan
Chief Executive Officer of Equitas Micro Finance Limited5yrsno data0.0042% 1.6m
Vakkalanka Murthy
Chief Executive Officer of Equitas Finance Limited5.1yrsno datano data
M. Natarajan
Executive VP & Head of Treasury - Equitas Small Finance Bank Ltd.0yrsno datano data

3.8yrs

Average Tenure

44.5yo

Average Age

Experienced Management: 539844's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
A. Alex
CEO & Director0.3yrsno datano data
Rangachary Nambiar Iyengar
Independent Non Executive Chairman12.6yrs₹666.87kno data
S. Bhaskar
Independent Non-Executive Director0.3yrs₹6.33m0.41% 160.9m
Jayshree Vyas
Independent Director5.3yrs₹595.94kno data
Viswanatha Subbaraman
Non-Executive & Independent Director2.3yrs₹931.40kno data
P. Rajaraman
Independent Director8.3yrs₹220.94kno data
Arun Ramanathan
Independent Director8.3yrs₹425.00kno data
Jayaraman Chandrasekaran
Non-Executive Independent Director0.5yrsno datano data

3.8yrs

Average Tenure

68yo

Average Age

Experienced Board: 539844's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹39.152b
  • Shares outstanding: 341.79m
  • 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
639844BSE (Mumbai Stock Exchange)INR10 (FOREIGN PREMIUM)ININRApr 2017

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 savings accounts, and term deposits; and offers micro finance loans, vehicle finance, housing finance, micro and small enterprises loans, agri loans, gold loans, business loans, etc. The company also offers online freight facilitation services under the Wowtruck brand name. It serves individuals, and micro and small enterprises. Equitas Holdings Limited was founded in 2007 and is based in Chennai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:29
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
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.