Religare Enterprises Ltd.
ISIN: INE621H01010 • Market Cap: ₹7,932 Cr
The 5-Pillar Quality Audit for Religare Enterprises Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (0.7%), Return on Capital Employed (8.5%), and equity compounding (5.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.06 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (24.1%) and 3Y PAT CAGR (-82.0%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 144.40 vs PEG of 4.30 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 30.6%, backed by 18.2% institutional ownership.
Key Fundamental Strengths
Fortress Balance Sheet (D/E: 0.06)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 24.1%)
Revenue has expanded at 24.1% CAGR over 3 years, signaling industry market-share gains.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 8.5%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Priced for Perfection (P/E: 144.40)
A steep valuation multiple of 144.40 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking RELIGARE 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 51/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Financial Services Sector Peer Comparison
Compare RELIGARE directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Religare Enterprises Ltd. (RELIGARE)Current | 51/100 | ₹7,932 Cr | 144.40 | 8.5% | 0.06 | — |
| 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: Religare Enterprises Ltd.
Q:What is the 5-Pillar Fundamental Score for Religare Enterprises Ltd. (RELIGARE)?
Religare Enterprises Ltd. has a RupeeTools Fundamental Score of 51/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (37/100), Financial Health (82/100), Growth (50/100), Valuation (18/100), and Ownership Quality (60/100).
Q:Is RELIGARE fundamentally strong for long-term investment?
RELIGARE currently holds a moderate quality rating of 51/100. While it operates in the Financial Services sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does RELIGARE pass the Coffee Can Investing filter?
No. RELIGARE does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does RELIGARE compare against other Financial Services peers?
Within India's Financial Services sector, RELIGARE trades at a P/E of 144.40 and generates an ROCE of 8.5%. Compare its 5-Pillar score of 51/100 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.