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8/16/2019 Edelweiss Intro
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INTRODUCTION
1 9 9 5 - 9 6 •
E d e l w e i s s C a p i t a l L i m i t e d ( E C L ) C o m m e n c e d B u s i n e s s f r o m 1 6 t h
J a n u a r y 1 9 9 6 b u t c o n c e i v e d a s p u b l i c l i m i t e d o n 1 1 t h N o v e m b e r 1 9 9 5 .
2 0 0 1
• O b t a i n e d F u t u r e s a n d o p t i o n s l i c e n s e .
2 0 0 2 •
A c q u i r e d R o o s h n i l S e c u r i t i e s P r i v a t e L i m i t e d a n d r e n a m e d i t a s
E d e l w e i s s S e c u r i t i e s L i m i t e d .
2 0 0 4 - 0 5 • E n t e r e d i n t o c o m m o d i t y t r a d i n g . • E n t e r e d i n t o i n s u r a n c e a d v i s o r y b u s i n e s s .
2 0 0 7
• T h e I P O o f t h e c o m p a n y s u c c e s s f u l l y b r o u g h t i n f u n d s o f R s . 6 8 1 c r o r e .
2 0 0 8 • E d e l w e i s s L i q u i d F u n d & E d e l w e i s s L i q u i d P l u s F u n d w a s l a u n c h e d
t h r o u g h i t s a s s e t m a n a g e m e n t c o m p a n y
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INTRODUCTION
Market capitalization of Rs.44.65 billion
Net worth of Rs. 35.314 billion. Growth at 52%
CAGR.
Revenue income for the financial year 2014-15was Rs.39 Billion at a CAGR of 49%.
PAT for the year was Rs.3.082 Billion at a CAGR
of 30%.
The CAGR for diluted EPS was 20%.The Beta of Edelweiss stock is 1.12.
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SWOT ANALYSIS FOR EDELWEISS
Strengths
1. High growth rate of Net Worth @52% CAGR.
2. Existing distribution and sales networks.
3. Acquired JPMC mutual fund at 7500cr4. High profitability and revenue.
5. Competitive Pricing.
. Weaknesses
1. Future profitability.
2. Future debt rating.
3. Investments in research and development.
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SWOT ANALYSIS FOR EDELWEISS
CONTINUED......
Opportunities
1. New markets, other countries
2. Growing economy.[CPI-5%]
3. Growth rates and profitability.4. New products and services.(ETF)
5. New acquisitions.
6. Income level is at a constant increase.
. Threats
1. Financial capacity.
2. Technological problems.
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MICHAEL E PORTER’S FIVE FORCE ANALYSIS
FOR EDELWEISS
T h r e a t o f N e w E n t r a n t s ( L o w ) .
T h e r e i s l o w t h r e a t o f n e w e n t r a n t s a s t h e i n d u s t r y i s r e g u l a t e d b y S E B I .
L i c e n s i n g i s r e q u i r e d f o r e n t r a n t s , w h i c h i s a d i ffi c u l t p r o c e s s .
T h u s , e n t e r i n g i n t o t h i s i n d u s t r y i s t o u g h .
T h r e a t o f E x i s t i n g C o m p a n i e s ( H i g h )
T h e r e a r e 4 6 4 s t o c k b r o k i n g c o m p a n i e s a n d t h e c o m p e t i t i o n i s v e r y h i g h .
T h e p r o fi t a b i l i t y i n t h i s i n d u s t r y d e p e n d s o n Q u a l i t y
o f s e r v i c e p r o v i d e d , I n n o v a t i o n s a n d T r u s t .
T h r e a t o f S u b s t i t u t e P r o d u c t s ( L o w ) .
T h e p r o d u c t s o ff e r e d i n t h i s i n d u s t r y a r e h o m o g e n o u s a n d d o n o t h a v e p e r f e c t s u b s t i t u t e .
B u t p e o p l e h a v e a l t e r n a t e w a y s f o r
a p p l i c a t i o n o f f u n d s s u c h a s G o l d , R e a l E s t a t e , A n g e l I n v e s t o r e t c .
B a r g a i n i n g P o w e r o f S u p p l i e r s
B a r g a i n i n g P o w e r o f
C u s t o m e r s ( M o d e r a t e ) . A s t h e r e a r e a l a r g e n u m b e r o f b r o k i n g c o m p a n i e s i n I n d i a t h e b a r g a i n i n g p o w e r o f c u s t o m e r s h o u l d b e h i g h . B u t d u e t o b e i n g a r e g u l a t o r y i n d u s t r y t h e c u s t o m e r s c a n n o t b a r g a i n t o a n y e x t e n t b u t t o s o m e l i m i t .
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PRODUCT RANGE
Investing and Trading.
Global Wealth Management.
Equity.
Derivatives.Currency Derivatives.
Mutual Fund.
Commodity.
Fixed Income.
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PROJECT – EQUITY
RESEARCH
Def. It primarily means analyzing company’s financials, perform
ratio analysis, forecast the financials(financial modeling) and
explore objectives of making buy/sell recommendation for stock
market investment.
It has two broad aspects;-
1.Fundamental analysis
1.1 Ratio analysis
2.Technical analysis
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I. RATIO ANALYSIS
It’s a tool which enables the banker or lender
to arrive at the following factors :
Liquidity position
ProfitabilitySolvency
Financial Stability
Quality of the Management
Safety & Security of the loans & advances to
be or already been provided
II. TECHNICAL ANALYSIS
Technical Analysis can be defined as an art and science
of forecasting future prices based on an examination
of the past price movements. Technical analysis is not
astrology for predicting prices. Technical analysis isbased on analyzing current demand-supply of
commodities, stocks, indices, futures or any tradable
instrument.
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CLASSIFICATION OF RATIOS
Balance Sheet
Ratio
P&L Ratio or
Income/Revenue
Statement Ratio
Balance Sheet
and Profit &
Loss Ratio
Financial Ratio Operating Ratio Composite Ratio
Current Ratio
Quick Asset Ratio
Proprietary Ratio
Debt Equity
Ratio
Gross Profit Ratio
Operating Ratio
Expense Ratio
Net profit Ratio
Stock Turnover
Ratio
Fixed Asset
Turnover Ratio,
Return on Total
Resources Ratio,
Return on Own
Funds Ratio,
Earning per Share
Ratio, Debtors’
Turnover Ratio,
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VALUATION RELIND JUBLIF FININD SUPPET
PE (x) 11.50 14.01 26.74 13.11
Price to Book Value
(x)
1.29 2.42 4.67 3.78
EV to Sales (x) 1.27 1.79 2.07 0.60EV to EBITDA (x) 10.33 14.98 25.69 16.56
Dividend Yield (%) 1.08 0.80 0.55 0.92
COMPARATIVE ANALYSIS
SOLVENCY &
MARGINS
RELIND JUBLIF FININD SUPPET
Debt to Equit
!atio (x)
0.74 1.81 0.86 0.0
Interest
"overa#e(x)
9.35 1.17 2.79 4.38
"urrent !atio (x) 0.74 0.88 0.82 0.99
EBITDA $ar#in
(%)
12.25 11.94 8.05 3.63
et Pro&it $ar#in
(%)
6.28 -0.99 1.93 1.35
GRO!T" POSITION
RELIND JUBLIF FININD SUPPET
3 Y# CAGR S$%' ()* 1.55 10.63 5.65 5.29
3 Y# CAGR P#+,- ()* 3.88 /1.59 0.81 2.23
1 Y# S$%' G#+ ) /13.59 0.39 0.9 /18.
1 Y# EBITDA G#+ ()* .9 /15.1 /6.23 0.52
1 Y# N P#+,- G#+()*
1.9 /8.11 /68.02 16.66
https://www.edelweiss.in/company/Reliance-Industries-Ltd.htmlhttps://www.edelweiss.in/company/Jubilant-Life-Sciences-Ltd.htmlhttps://www.edelweiss.in/company/Finolex-Industries-Ltd.htmlhttps://www.edelweiss.in/company/Supreme-Petrochem-Ltd.htmlhttps://www.edelweiss.in/company/Reliance-Industries-Ltd.htmlhttps://www.edelweiss.in/company/Jubilant-Life-Sciences-Ltd.htmlhttps://www.edelweiss.in/company/Finolex-Industries-Ltd.htmlhttps://www.edelweiss.in/company/Supreme-Petrochem-Ltd.htmlhttps://www.edelweiss.in/company/Reliance-Industries-Ltd.htmlhttps://www.edelweiss.in/company/Jubilant-Life-Sciences-Ltd.htmlhttps://www.edelweiss.in/company/Finolex-Industries-Ltd.htmlhttps://www.edelweiss.in/company/Supreme-Petrochem-Ltd.htmlhttps://www.edelweiss.in/company/Supreme-Petrochem-Ltd.htmlhttps://www.edelweiss.in/company/Finolex-Industries-Ltd.htmlhttps://www.edelweiss.in/company/Jubilant-Life-Sciences-Ltd.htmlhttps://www.edelweiss.in/company/Reliance-Industries-Ltd.htmlhttps://www.edelweiss.in/company/Supreme-Petrochem-Ltd.htmlhttps://www.edelweiss.in/company/Finolex-Industries-Ltd.htmlhttps://www.edelweiss.in/company/Jubilant-Life-Sciences-Ltd.htmlhttps://www.edelweiss.in/company/Reliance-Industries-Ltd.htmlhttps://www.edelweiss.in/company/Supreme-Petrochem-Ltd.htmlhttps://www.edelweiss.in/company/Finolex-Industries-Ltd.htmlhttps://www.edelweiss.in/company/Jubilant-Life-Sciences-Ltd.htmlhttps://www.edelweiss.in/company/Reliance-Industries-Ltd.html
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Indicator Analysis Signal (0 - 10)
R%$- '#4-47(RSI*
RSI is 56.5. According to RSI analysis, reliance is tecnically strong. 9.0
M+-4 $#$
+4#4
-#4(MACD*
!A"#$ 10.9 and Signal %ine$ 12.5. According to !A"# analysis, reliance is
&arginally 'ea(.
3.0
S-:% +-4 $#$ According to si&)le &o*ing a*erage analysis, reliance is in a strong +)trend.
!aor s+))ort le*els are 1029.925, 996.601, 965.4597.
10.0
E7:+44-$% M+-4
A#$
According to e)onential &o*ing a*erage analysis, reliance is in a strong
+)trend. !aor s+))ort le*els are 1026.612, 1008.94, 969.2228.
10.0
F-;+4$- R#$4 According to i/onacci retrace&ent, )rice is a/o*e all le*els. !aor s+))ort is at
991.8622 and 972.05. Resistance le*el is 1056.0.
6.5