Edelweiss Financial Services Ltd.
ISIN: INE532F01054 • Market Cap: ₹11,581 Cr
The 5-Pillar Quality Audit for Edelweiss Financial Services Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (27.6%), Return on Capital Employed (12.1%), and equity compounding (9.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 4.37 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (7.4%) and 3Y PAT CAGR (24.0%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 19.23 vs PEG of 0.75 and Dividend Yield of 1.2%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 32.3%, backed by 26.7% institutional ownership.
Key Fundamental Strengths
High-Velocity Profit Compounding (3Y PAT CAGR: 24.0%)
Net earnings have compounded at 24.0% annualized, demonstrating operating leverage.
Attractive Valuation Margin (P/E: 19.23)
Trading at a P/E multiple of 19.23, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (26.7%)
Mutual funds, domestic DIIs, and foreign FIIs hold 26.7%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 4.37)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Sectoral & Macro Headwinds (Financial Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Financial Services space.
Quantitative Strategy Eligibility
Checking EDELWEISS against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 63/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Financial Services Sector Peer Comparison
Compare EDELWEISS directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Edelweiss Financial Services Ltd. (EDELWEISS)Current | 63/100 | ₹11,581 Cr | 19.23 | 12.1% | 4.37 | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: Edelweiss Financial Services Ltd.
Q:What is the 5-Pillar Fundamental Score for Edelweiss Financial Services Ltd. (EDELWEISS)?
Edelweiss Financial Services Ltd. has a RupeeTools Fundamental Score of 63/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (67/100), Financial Health (44/100), Growth (72/100), Valuation (82/100), and Ownership Quality (60/100).
Q:Is EDELWEISS fundamentally strong for long-term investment?
EDELWEISS currently holds a moderate quality rating of 63/100. While it operates in the Financial Services sector, investors should monitor its debt health before initiating long-term positions.
Q:Does EDELWEISS pass the Coffee Can Investing filter?
No. EDELWEISS does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does EDELWEISS compare against other Financial Services peers?
Within India's Financial Services sector, EDELWEISS trades at a P/E of 19.23 and generates an ROCE of 12.1%. Compare its 5-Pillar score of 63/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.