IIFL Capital Services Ltd.
ISIN: INE489L01022 • Market Cap: ₹10,521 Cr
The 5-Pillar Quality Audit for IIFL Capital Services Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (35.0%), Return on Capital Employed (27.4%), and equity compounding (18.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.63 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (4.0%) and 3Y PAT CAGR (3.8%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 18.45 vs PEG of 1.45 and Dividend Yield of 0.9%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 30.7%, backed by 20.1% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 27.4%)
IIFL Capital Services Ltd. generates exceptional return on capital employed of 27.4%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 18.3%)
Shareholder equity compounds at a healthy 18.3%, exceeding average Indian equity benchmarks.
Attractive Valuation Margin (P/E: 18.45)
Trading at a P/E multiple of 18.45, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 4.0%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
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 IIFLCAPS against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 68/100 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 IIFLCAPS directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| IIFL Capital Services Ltd. (IIFLCAPS)Current | 68/100 | ₹10,521 Cr | 18.45 | 27.4% | 0.63 | — |
| 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: IIFL Capital Services Ltd.
Q:What is the 5-Pillar Fundamental Score for IIFL Capital Services Ltd. (IIFLCAPS)?
IIFL Capital Services Ltd. has a RupeeTools Fundamental Score of 68/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (92/100), Financial Health (67/100), Growth (40/100), Valuation (77/100), and Ownership Quality (60/100).
Q:Is IIFLCAPS fundamentally strong for long-term investment?
IIFLCAPS currently holds a moderate quality rating of 68/100. While it operates in the Financial Services sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does IIFLCAPS pass the Coffee Can Investing filter?
Yes! IIFLCAPS satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does IIFLCAPS compare against other Financial Services peers?
Within India's Financial Services sector, IIFLCAPS trades at a P/E of 18.45 and generates an ROCE of 27.4%. Compare its 5-Pillar score of 68/100 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.