⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
IIFL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | IIFL | Market Cap | 20,207 Cr. | Current Price | 476 ₹ | High / Low | 675 ₹ |
| Stock P/E | 29.6 | Book Value | 162 ₹ | Dividend Yield | 0.84 % | ROCE | 6.57 % |
| ROE | 4.20 % | Face Value | 2.00 ₹ | DMA 50 | 575 ₹ | DMA 200 | 508 ₹ |
| Chg in FII Hold | 1.00 % | Chg in DII Hold | 0.03 % | PAT Qtr | 301 Cr. | PAT Prev Qtr | 211 Cr. |
| RSI | 25.9 | MACD | -22.4 | Volume | 36,43,120 | Avg Vol 1Wk | 51,50,518 |
| Low price | 280 ₹ | High price | 675 ₹ | PEG Ratio | -0.98 | Debt to equity | 4.55 |
| 52w Index | 49.6 % | Qtr Profit Var | 1,785 % | EPS | 16.1 ₹ | Industry PE | 18.9 |
📊 Core Financials
- Revenue & Profitability: PAT rose from 211 Cr. to 301 Cr. QoQ (+1,785%), showing strong earnings momentum.
- Margins: ROE at 4.20% and ROCE at 6.57% remain weak, indicating limited efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 4.55 is high, reflecting significant leverage risk.
- Cash Flow: Dividend yield of 0.84% provides modest shareholder reward.
💹 Valuation Indicators
- P/E Ratio: 29.6 vs Industry PE of 18.9 → overvalued compared to peers.
- P/B Ratio: Current Price (476 ₹) / Book Value (162 ₹) ≈ 2.94, relatively expensive.
- PEG Ratio: -0.98 suggests growth prospects are not aligned with valuation.
- Intrinsic Value: Current price appears stretched, trading below DMA 50 (575 ₹) and DMA 200 (508 ₹), indicating weakness.
🏦 Business Model & Competitive Advantage
- IIFL operates in diversified financial services including wealth management, lending, and advisory.
- Competitive advantage lies in diversified offerings and strong brand presence.
- However, high leverage and weak return ratios limit long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive entry closer to 400 ₹ – 420 ₹, near support levels.
- Long-Term Holding: Suitable for investors seeking exposure to diversified financial services, but caution advised due to high debt and weak ROE.
✅ Positive
- Strong quarterly PAT growth (+1,785%).
- FII holdings increased (+1.0%), showing foreign investor confidence.
- Diversified financial services business model.
⚠️ Limitation
- High debt-to-equity ratio (4.55).
- Low ROE (4.20%) and ROCE (6.57%) indicate weak efficiency.
- PEG ratio negative (-0.98), suggesting valuation mismatch.
📉 Company Negative News
- Stock trades at a high P/E (29.6), making it expensive compared to peers.
- Weak RSI (25.9) and negative MACD (-22.4) indicate bearish technicals.
📈 Company Positive News
- Quarterly PAT surged significantly, showing strong earnings momentum.
- FII and DII holdings increased, reflecting institutional confidence.
🏭 Industry
- Industry PE at 18.9 is lower than IIFL’s valuation, highlighting overpricing.
- Financial services sector growth driven by wealth management and retail lending demand.
- Competition from established NBFCs and banks remains strong.
🔎 Conclusion
- IIFL shows strong profit growth but is overvalued relative to industry peers.
- High debt and weak return ratios pose risks for long-term investors.
- Best suited for cautious investors entering near 400–420 ₹, with close monitoring of debt reduction and profitability improvement.
Would you like me to extend this into a comparative HTML report of IIFL versus IFCI, IDBI, and IDFC First Bank to highlight which offers better relative value in the financial services space?