NSEI:EDELWEISS

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


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

6.0%

EDELWEISS

2.7%

IN Capital Markets

2.1%

IN Market


1 Year Return

-44.2%

EDELWEISS

14.0%

IN Capital Markets

2.4%

IN Market

Return vs Industry: EDELWEISS underperformed the Indian Capital Markets industry which returned 14.1% over the past year.

Return vs Market: EDELWEISS underperformed the Indian Market which returned 2.6% over the past year.


Shareholder returns

EDELWEISSIndustryMarket
7 Day6.0%2.7%2.1%
30 Day40.8%4.5%4.5%
90 Day110.9%31.7%21.8%
1 Year-44.2%-44.2%15.6%14.0%4.3%2.4%
3 Year-65.5%-66.0%-29.9%-32.7%5.2%0.2%
5 Year31.5%25.4%28.7%19.2%29.7%20.0%

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?

1.17x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: EDELWEISS (₹80.65) is trading above our estimate of fair value (₹5.98)

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


Price To Earnings Ratio

PE vs Industry: EDELWEISS is unprofitable, so we can't compare its PE Ratio to the IN Capital Markets industry average.

PE vs Market: EDELWEISS is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EDELWEISS's PEG Ratio to determine if it is good value.


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 4 analysts?

129.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EDELWEISS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (7.2%).

Earnings vs Market: EDELWEISS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EDELWEISS's is expected to become profitable in 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 (10.1%).


Next Steps

Past Performance

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

-4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EDELWEISS is currently unprofitable.

Growing Profit Margin: EDELWEISS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EDELWEISS is unprofitable, and losses have increased over the past 5 years at a rate of 4.8% per year.

Accelerating Growth: Unable to compare EDELWEISS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EDELWEISS is unprofitable, making it difficult to compare its past year earnings growth to the Capital Markets industry (-8.1%).


Return on Equity

High ROE: EDELWEISS has a negative Return on Equity (-28.36%), as it is currently unprofitable.


Next Steps

Financial Health

How is Edelweiss Financial Services's financial position?


Financial Position Analysis

Short Term Liabilities: EDELWEISS's short term assets (₹411.8B) exceed its short term liabilities (₹17.6B).

Long Term Liabilities: EDELWEISS's short term assets (₹411.8B) do not cover its long term liabilities (₹453.1B).


Debt to Equity History and Analysis

Debt Level: EDELWEISS's debt to equity ratio (510.9%) is considered high.

Reducing Debt: EDELWEISS's debt to equity ratio has reduced from 615.2% to 510.9% over the past 5 years.

Debt Coverage: EDELWEISS's debt is well covered by operating cash flow (32.9%).

Interest Coverage: Insufficient data to determine if EDELWEISS's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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

1.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EDELWEISS's dividend (1.74%) is higher than the bottom 25% of dividend payers in the Indian market (0.64%).

High Dividend: EDELWEISS's dividend (1.74%) is low compared to the top 25% of dividend payers in the Indian market (2.65%).


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: EDELWEISS is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: EDELWEISS's dividends in 3 years are forecast to be thoroughly covered by earnings (15% payout ratio).


Next Steps

Management

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

7.2yrs

Average board tenure


CEO

Rashesh Shah (57 yo)

no data

Tenure

₹72,660,000

Compensation

Mr. Rashesh Chandrakant Shah Co-founded Edelweiss Financial Services Limited (formerly, Edelweiss Financial Services Ltd. (formerly known as Edelweiss Capital Ltd.)) in 1995. Mr. Shah serves as the Chief E ...


CEO Compensation Analysis

Compensation vs Market: Rashesh's total compensation ($USD969.86K) is above average for companies of similar size in the Indian market ($USD378.45K).

Compensation vs Earnings: Rashesh's compensation has increased whilst the company is unprofitable.


Board Members

NamePositionTenureCompensationOwnership
Rashesh Shah
Chairmanno data₹72.66m16.7%
₹ 12.0b
Arakoni Ramaswamy
Co-Founder0.58yr₹53.70m7.86%
₹ 5.6b
Himanshu Kaji
Executive Director & Group COO8.75yrs₹263.48m0.45%
₹ 321.6m
Rujan Panjwani
Head of Insurance Business of Edelweiss Group & Executive Director7.17yrs₹80.34m1.46%
₹ 1.0b
Navtej Nandra
Independent Director7.25yrs₹1.60m0.90%
₹ 643.1m
Vidya Shah
Non-Executive Non-Independent Director6yrsno data3.71%
₹ 2.7b
Pudugramam Venkatachalam
Independent Director13yrs₹1.78m0.030%
₹ 21.8m
Sushil Roongta
Member of Advisory Board3.42yrsno datano data
Kunnasagaran Chinniah
Independent Director7.58yrs₹1.70mno data
Thiagarajan Sankaralingam
Member of Advisory Board3.42yrsno datano data
Berjis Desai
Independent Director11.58yrs₹1.56m0.015%
₹ 11.1m
Biswamohan Mahapatra
Independent Director5.42yrs₹1.58mno data

7.2yrs

Average Tenure

60yo

Average Age

Experienced Board: EDELWEISS's board of directors are considered experienced (7.2 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

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: ₹71.754b
  • Shares outstanding: 889.70m
  • 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 s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 12:34
End of Day Share Price2020/08/06 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.