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

-0.1%

EDELWEISS

3.6%

IN Capital Markets

1.9%

IN Market


1 Year Return

-36.2%

EDELWEISS

-2.8%

IN Capital Markets

8.1%

IN Market

Return vs Industry: EDELWEISS underperformed the Indian Capital Markets industry which returned -7.6% over the past year.

Return vs Market: EDELWEISS underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

EDELWEISSIndustryMarket
7 Day-0.1%3.6%1.9%
30 Day-8.5%11.4%3.1%
90 Day17.9%28.0%6.5%
1 Year-35.6%-36.2%-1.2%-2.8%10.1%8.1%
3 Year-0.02%-2.4%11.8%7.7%35.1%28.0%
5 Year60.8%51.1%28.4%20.0%36.6%24.2%

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?

14.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EDELWEISS (₹108.75) is trading above our estimate of fair value (₹14.88)

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 (15x) compared to the Capital Markets industry average (13x).

PE vs Market: EDELWEISS is poor value based on its PE Ratio (15x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EDELWEISS is overvalued based on its PB Ratio (1.2x) 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?

38.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDELWEISS's forecast earnings growth (38.3% per year) is above the savings rate (6.5%).

Earnings vs Market: EDELWEISS's earnings (38.3% per year) are forecast to grow faster than the Indian market (19.8% per year).

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

Revenue vs Market: Insufficient data to determine if EDELWEISS's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if EDELWEISS's revenue is forecast to grow faster 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 (10.4%).


Next Steps

Past Performance

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

24.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EDELWEISS has high quality earnings.

Growing Profit Margin: EDELWEISS's current net profit margins (11.2%) are lower than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: EDELWEISS's earnings have grown significantly by 24.6% 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 (-37.6%) over the past year, making it difficult to compare to the Capital Markets industry average (4.3%).


Return on Equity

High ROE: EDELWEISS's Return on Equity (8%) 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?

1.32%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%0.6%markettop25%2.2%industryaverage1.6%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: EDELWEISS's dividend (1.29%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: EDELWEISS's dividend (1.29%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


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 (19.4%), EDELWEISS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EDELWEISS's dividends in 3 years are forecast to be thoroughly covered by earnings (13% payout ratio).


Next Steps

Management

What is the CEO of Edelweiss Financial Services's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average board tenure


CEO

Rashesh Shah (56yo)

0yrs

Tenure

₹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 ($USD1.03M) is above average for companies of similar size in the Indian market ($USD641.04K).

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


Board Age and Tenure

7.0yrs

Average Tenure

56yo

Average Age

Experienced Board: EDELWEISS's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: EDELWEISS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹5,406,38805 Dec 19
Ankit Aditya
EntityIndividual
Shares45,000
Max Price₹120.14
Sell₹2,478,12922 Nov 19
Nilesh Sampat
EntityIndividual
Shares20,000
Max Price₹123.91
Sell₹1,222,15001 Oct 19
Ashish Bansal
EntityIndividual
Shares8,000
Max Price₹152.77
Sell₹6,145,24926 Sep 19
Subramanian Ranganathan
EntityIndividual
Role
President
CFO & President
Shares50,000
Max Price₹122.90
Sell₹3,243,93419 Sep 19
Subramanian Ranganathan
EntityIndividual
Role
President
CFO & President
Shares30,000
Max Price₹108.13
Sell₹3,397,90219 Sep 19
Siby Mimani
EntityIndividual
Shares32,502
Max Price₹104.54
Sell₹6,552,09618 Sep 19
Subramanian Ranganathan
EntityIndividual
Role
President
CFO & President
Shares60,500
Max Price₹108.30
Sell₹1,080,04818 Sep 19
Shrikant Subbarayan
EntityIndividual
Shares10,000
Max Price₹108.00
Sell₹1,089,07918 Sep 19
Siby Mimani
EntityIndividual
Shares10,000
Max Price₹108.91
Sell₹3,197,63504 Sep 19
Subramanian Ranganathan
EntityIndividual
Role
President
CFO & President
Shares26,000
Max Price₹122.99
Sell₹2,063,53128 Aug 19
Om Jain
EntityIndividual
Shares20,000
Max Price₹103.18
Sell₹5,269,40328 Aug 19
Gaurang Tailor
EntityIndividual
Shares50,000
Max Price₹105.39
Sell₹2,618,88528 Aug 19
Nilesh Sampat
EntityIndividual
Shares25,000
Max Price₹104.76
Sell₹3,382,12622 Aug 19
Shrikant Subbarayan
EntityIndividual
Shares28,288
Max Price₹119.56
Sell₹2,618,06022 Aug 19
Siby Mimani
EntityIndividual
Shares20,000
Max Price₹130.90
Sell₹17,994,57108 Jul 19
Bismillah Chowdhary
EntityIndividual
Shares105,000
Max Price₹171.38
Sell₹1,783,65204 Jul 19
Bismillah Chowdhary
EntityIndividual
Shares10,500
Max Price₹169.87
Sell₹3,538,26903 Jul 19
Shalinee Mimani
EntityIndividual
Shares20,000
Max Price₹176.91
Sell₹3,509,83203 Jul 19
Shrikant Subbarayan
EntityIndividual
Shares20,598
Max Price₹170.40
Sell₹3,452,67703 Jul 19
Bismillah Chowdhary
EntityIndividual
Shares20,000
Max Price₹172.63
Sell₹5,300,90725 Jun 19
Siby Mimani
EntityIndividual
Shares30,498
Max Price₹173.81
Sell₹3,053,99225 Jun 19
Harish Chander
EntityIndividual
Shares17,300
Max Price₹176.53
Sell₹3,521,06625 Jun 19
Shalinee Mimani
EntityIndividual
Shares20,000
Max Price₹176.05
Sell₹11,547,36825 Jun 19
Vivek Agarwal
EntityIndividual
Shares65,000
Max Price₹177.65
Sell₹4,508,40021 Jun 19
Siby Mimani
EntityIndividual
Shares26,000
Max Price₹173.40
Sell₹1,809,71518 Jun 19
Kulbir Rana
EntityIndividual
Shares10,000
Max Price₹180.97
Sell₹1,580,24111 Jun 19
Harish Chander
EntityIndividual
Shares8,000
Max Price₹197.53
Sell₹3,014,31107 Jun 19
Sarika Samant
EntityIndividual
Shares14,626
Max Price₹206.09
Sell₹10,417,65507 Jun 19
Siby Mimani
EntityIndividual
Shares50,000
Max Price₹208.35
Sell₹8,156,95007 Jun 19
Rohit Mehta
EntityIndividual
Shares40,000
Max Price₹203.92
Sell₹2,050,55007 Jun 19
Kulbir Rana
EntityIndividual
Shares10,000
Max Price₹205.05
Sell₹7,282,28207 Jun 19
Kalpana Maniar
EntityIndividual
Shares35,000
Max Price₹208.07
Sell₹5,923,73504 Jun 19
Ravindra Dhobale
EntityIndividual
Shares30,000
Max Price₹197.46
Sell₹5,902,82404 Jun 19
Manjeet Bijlani
EntityIndividual
Shares30,000
Max Price₹196.76
Sell₹11,186,84804 Jun 19
Shrikant Subbarayan
EntityIndividual
Shares60,000
Max Price₹186.45
Sell₹8,865,08604 Jun 19
Harish Chander
EntityIndividual
Shares45,000
Max Price₹197.00
Sell₹3,040,01204 Jun 19
Shalinee Mimani
EntityIndividual
Shares15,000
Max Price₹202.67
Sell₹9,846,67004 Jun 19
Kalpana Maniar
EntityIndividual
Shares50,000
Max Price₹196.93
Sell₹1,313,42530 May 19
Harish Chander
EntityIndividual
Shares7,000
Max Price₹187.63
Sell₹2,832,65230 May 19
Kalpana Maniar
EntityIndividual
Shares15,000
Max Price₹188.84
Sell₹1,871,14830 May 19
Akhil Mangla
EntityIndividual
Shares10,000
Max Price₹187.11
Sell₹2,775,80928 May 19
Harish Chander
EntityIndividual
Shares15,000
Max Price₹185.05
Sell₹3,861,68021 May 19
Bismillah Chowdhary
EntityIndividual
Shares25,000
Max Price₹154.47
Sell₹2,535,02702 Apr 19
Ravindra Dhobale
EntityIndividual
Shares12,937
Max Price₹195.95
Sell₹9,894,14001 Apr 19
Raviprakash Bubna
EntityIndividual
Shares50,000
Max Price₹197.88
Sell₹7,838,29401 Apr 19
Manjeet Bijlani
EntityIndividual
Shares40,000
Max Price₹195.96
Sell₹388,399,90301 Apr 19
Vidya Shah
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Non-Independent Director
Shares2,000,000
Max Price₹194.20
Sell₹92,275,05729 Mar 19
Raviprakash Bubna
EntityIndividual
Shares485,000
Max Price₹190.26
Sell₹6,393,77229 Mar 19
Kalpana Maniar
EntityIndividual
Shares33,500
Max Price₹190.86
Sell₹3,090,28325 Mar 19
Shrikant Subbarayan
EntityIndividual
Shares15,741
Max Price₹196.32
Sell₹3,944,35125 Mar 19
Kalpana Maniar
EntityIndividual
Shares20,000
Max Price₹197.22
Sell₹66,476,19325 Mar 19
Raviprakash Bubna
EntityIndividual
Shares340,000
Max Price₹195.52
Sell₹118,009,62119 Mar 19
Raviprakash Bubna
EntityIndividual
Shares625,000
Max Price₹188.82
Sell₹17,975,06419 Mar 19
Raviprakash Bubna
EntityIndividual
Shares100,000
Max Price₹179.75

Ownership Breakdown

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


Management Team

  • Rashesh Shah (56yo)

    Chairman

    • Compensation: ₹72.66m
  • Venkat Ramaswamy (53yo)

    Co-Founder

    • Tenure: 23.9yrs
    • Compensation: ₹53.70m
  • Rujan Panjwani (56yo)

    Executive Director

    • Tenure: 6.6yrs
    • Compensation: ₹80.34m
  • Sanjay Waghani

    Vice President of Investment Banking

    • B. Renganathan

      Executive VP

      • Compensation: ₹11.23m
    • Himanshu Kaji (54yo)

      Executive Director & Group COO

      • Tenure: 8.2yrs
      • Compensation: ₹263.48m
    • Subramanian Ranganathan

      CFO & President

      • Compensation: ₹24.32m
    • Shabnam Panjwani

      Chief Marketing Officer

      • Salil Bawa

        Senior Vice President of Stakeholder Relations

        • Revathi Pandit

          Vice President of Corporate Communications


          Board Members

          • Navtej Nandra (53yo)

            Independent Director

            • Tenure: 6.7yrs
            • Compensation: ₹1.60m
          • Rashesh Shah (56yo)

            Chairman

            • Compensation: ₹72.66m
          • Vidya Shah (53yo)

            Non-Executive Non-Independent Director

            • Tenure: 5.4yrs
          • Venkat Ramaswamy (53yo)

            Co-Founder

            • Tenure: 23.9yrs
            • Compensation: ₹53.70m
          • Rujan Panjwani (56yo)

            Executive Director

            • Tenure: 6.6yrs
            • Compensation: ₹80.34m
          • Pudugramam Venkatachalam (75yo)

            Independent Director

            • Tenure: 12.4yrs
            • Compensation: ₹1.78m
          • Kunna Chinniah (62yo)

            Independent Director

            • Tenure: 7yrs
            • Compensation: ₹1.70m
          • Berjis Desai (63yo)

            Independent Director

            • Tenure: 11yrs
            • Compensation: ₹1.56m
          • Himanshu Kaji (54yo)

            Executive Director & Group COO

            • Tenure: 8.2yrs
            • Compensation: ₹263.48m
          • Biswamohan Mahapatra (65yo)

            Independent Director

            • Tenure: 4.8yrs
            • Compensation: ₹1.58m

          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: ₹94.138b
          • Shares outstanding: 889.35m
          • 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 Analysis2020/01/19 12:44
          End of Day Share Price2020/01/17 00:00
          Earnings2019/09/30
          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.