IIFL Capital Services Ltd. Fundamental Analysis (NSE: IIFLCAPS.NS)
IIFL Capital Services Ltd. Fundamental Analysis (NSE: IIFLCAPS.NS)
IIFL Capital Services Ltd. (NSE: IIFLCAPS.NS) shows strong financial fundamentals with a PE ratio of 18.44, profit margin of 25.62%, and ROE of 20.40%. The company generates $22.3B in annual revenue with strong year-over-year growth of 31.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze IIFLCAPS.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakIIFLCAPS.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIIFLCAPS.NS trades at attractive valuation levels.
Growth Score
ModerateIIFLCAPS.NS shows steady but slowing expansion.
Financial Health Score
ExcellentIIFLCAPS.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateIIFLCAPS.NS maintains healthy but balanced margins.
Key Financial Metrics
Is IIFLCAPS.NS Expensive or Cheap?
P/E Ratio
IIFLCAPS.NS trades at 18.44 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, IIFLCAPS.NS's PEG of -0.93 indicates potential undervaluation.
Price to Book
The market values IIFL Capital Services Ltd. at 3.45 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.71 times EBITDA. This signals the market has high growth expectations.
How Well Does IIFLCAPS.NS Make Money?
Net Profit Margin
For every $100 in sales, IIFL Capital Services Ltd. keeps $25.62 as profit after all expenses.
Operating Margin
Core operations generate 20.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.40 in profit for every $100 of shareholder equity.
ROA
IIFL Capital Services Ltd. generates $5.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
IIFL Capital Services Ltd. generates limited operating cash flow of $-106.41M, signaling weaker underlying cash strength.
Free Cash Flow
IIFL Capital Services Ltd. generates weak or negative free cash flow of $-506.68M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.62 in free cash annually.
FCF Yield
IIFLCAPS.NS converts -0.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.45
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.76
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
19.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How IIFLCAPS.NS Stacks Against Its Sector Peers
| Metric | IIFLCAPS.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.44 | 21.04 | Better (Cheaper) |
| ROE | 20.40% | 654.00% | Weak |
| Net Margin | 25.62% | -780.00% (disorted) | Strong |
| Debt/Equity | 0.59 | 0.87 | Strong (Low Leverage) |
| Current Ratio | 19.52 | 877.76 | Strong Liquidity |
| ROA | 5.96% | 6586.00% | Weak |
IIFLCAPS.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews IIFL Capital Services Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
30.43%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-21.59%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-41.64%
Industry Style: Value, Dividend, Cyclical
Declining