NSEI:EDELWEISS

Stock Analysis Report

Executive Summary

Edelweiss Financial Services Limited provides financial products and services to individuals and institutions in India.


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Edelweiss Financial Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EDELWEISS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.0%

EDELWEISS

4.2%

IN Capital Markets

-0.07%

IN Market


1 Year Return

-37.1%

EDELWEISS

11.7%

IN Capital Markets

9.5%

IN Market

Return vs Industry: EDELWEISS underperformed the Indian Capital Markets industry which returned 11.7% over the past year.

Return vs Market: EDELWEISS underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

EDELWEISSIndustryMarket
7 Day9.0%4.2%-0.07%
30 Day0.5%4.1%-1.3%
90 Day-24.0%15.9%1.9%
1 Year-37.0%-37.1%13.4%11.7%11.5%9.5%
3 Year-33.8%-34.9%0.2%-3.7%23.6%16.7%
5 Year42.6%35.6%22.3%14.4%35.5%22.9%

Price Volatility Vs. Market

How volatile is Edelweiss Financial Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Edelweiss Financial Services undervalued compared to its fair value and its price relative to the market?

19.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EDELWEISS (₹92.8) is trading above our estimate of fair value (₹8.15)

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


Price To Earnings Ratio

PE vs Industry: EDELWEISS is poor value based on its PE Ratio (19.1x) compared to the Capital Markets industry average (11.2x).

PE vs Market: EDELWEISS is poor value based on its PE Ratio (19.1x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: EDELWEISS is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: EDELWEISS is overvalued based on its PB Ratio (1.1x) compared to the IN Capital Markets industry average (0.5x).


Next Steps

Future Growth

How is Edelweiss Financial Services forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

55.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDELWEISS's forecast earnings growth (55.8% per year) is above the savings rate (6.5%).

Earnings vs Market: EDELWEISS's earnings (55.8% per year) are forecast to grow faster than the Indian market (20.5% per year).

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

Revenue vs Market: EDELWEISS's revenue (8.9% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: EDELWEISS's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EDELWEISS's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Edelweiss Financial Services performed over the past 5 years?

19.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EDELWEISS has high quality earnings.

Growing Profit Margin: EDELWEISS's current net profit margins (8.1%) are lower than last year (14.6%).


Past Earnings Growth Analysis

Earnings Trend: EDELWEISS's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: EDELWEISS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EDELWEISS had negative earnings growth (-57.6%) over the past year, making it difficult to compare to the Capital Markets industry average (-5.6%).


Return on Equity

High ROE: EDELWEISS's Return on Equity (5.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Edelweiss Financial Services'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: EDELWEISS has a low level of unsold assets or inventory.

Debt Coverage by Assets: EDELWEISS's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Edelweiss Financial Services's current dividend yield, its reliability and sustainability?

1.51%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%0.6%markettop25%2.6%industryaverage1.6%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: EDELWEISS's dividend (1.51%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: EDELWEISS's dividend (1.51%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

Stable Dividend: EDELWEISS's dividend payments have been volatile in the past 10 years.

Growing Dividend: EDELWEISS's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (6.2%), EDELWEISS's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EDELWEISS's dividends in 3 years are forecast to be thoroughly covered by earnings (11.9% payout ratio).


Next Steps

Management

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

6.8yrs

Average board tenure


CEO

Rashesh Shah (56yo)

₹72,660,000

Compensation

Mr. Rashesh Chandrakant Shah co-founded Edelweiss Financial Services Limited (formerly, Edelweiss Capital Ltd.) in 1995. Mr. Shah serves as the Chief Executive Officer of Edelweiss Group and served as its  ...


CEO Compensation Analysis

Compensation vs Market: Rashesh's total compensation ($USD1.01M) is above average for companies of similar size in the Indian market ($USD407.20K).

Compensation vs Earnings: Rashesh's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Rashesh Shah
Chairman0yrs₹72.66m16.67% 13.3b
Arakoni Ramaswamy
Co-Founder0.08yrs₹53.70m7.86% 6.3b
Himanshu Kaji
Executive Director & Group COO8.3yrs₹263.48m0.45% 357.7m
Rujan Panjwani
Executive Director6.7yrs₹80.34m1.46% 1.2b
Navtej Nandra
Independent Director6.8yrs₹1.60m0.90% 715.3m
Vidya Shah
Non-Executive Non-Independent Director5.5yrsno data3.71% 3.0b
Pudugramam Venkatachalam
Independent Director12.5yrs₹1.78m0.030% 24.2m
Kunnasagaran Chinniah
Independent Director7.1yrs₹1.70mno data
Berjis Desai
Independent Director11.1yrs₹1.56m0.015% 12.3m
Biswamohan Mahapatra
Independent Director4.9yrs₹1.58mno data

6.8yrs

Average Tenure

56yo

Average Age

Experienced Board: EDELWEISS's board of directors are considered experienced (6.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EDELWEISS insiders have only sold shares 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

Edelweiss Financial Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Edelweiss Financial Services Limited
  • Ticker: EDELWEISS
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: ₹79.783b
  • Shares outstanding: 889.44m
  • Website: https://www.edelweissfin.com

Number of Employees


Location

  • Edelweiss Financial Services Limited
  • Edelweiss House
  • Off. C.S.T. Road
  • Mumbai
  • Maharashtra
  • 400098
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EDELWEISSNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2007
532922BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2007

Biography

Edelweiss Financial Services Limited provides financial products and services to individuals and institutions in India. The company operates through Agency Business, Capital Based, and Insurance Business segments. It offers retail credit products, such as home loans, SME and business loans, loans against shares, and agricultural and rural finance; corporate credit products, including structured collateralized credit and wholesale mortgage; and distressed credit. The company also provides personal and private wealth management services; asset management products and services comprising mutual funds, alternate asset advisory, multi strategy funds, and distressed assets resolution; and capital markets services that include investment banking, institutional equities, forex and rates, asset, and financial product distribution services. In addition, it offers life and general insurance products. The company was formerly known as Edelweiss Capital Limited and changed its name to Edelweiss Financial Services Limited in August 2011. Edelweiss Financial Services Limited was founded in 1995 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:55
End of Day Share Price2020/02/24 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.