Stocks - Q : Quality | V : Valuation | PT : Price Trend
Funds - P : Performance | Q : Quality
Funds - P : Performance | Q : Quality
BSE: 532636 | NSE: IIFL | Finance - Investment | Small Cap
Past 10 year's financial track record analysis by Moneyworks4me indicates that IIFL Finance Ltd is a average quality company.
The key valuation ratios of IIFL Finance Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of IIFL Finance Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Income (₹ Cr.) | 109 | 211 | 143 | 246 | 2,953 | 2,650 | 3,397 | 4,080 | 4,059 | 4,604 | 4,337 | |
| YoY Gr. Rt. % | - | 93.9% | -32.5% | 72.7% | 1099.3% | -10.3% | 28.2% | 20.1% | -0.5% | 13.5% | - | |
| Adj EPS (₹ ) | 3.1 | 5.3 | 4.3 | 6.5 | 13.7 | 3.8 | 8.8 | 19.1 | 20.6 | 14.9 | -6.7 | |
| YoY Gr. Rt. % | - | 71.8% | -18.7% | 52.1% | 109.8% | -72.2% | 129.8% | 117.2% | 7.8% | -27.6% | - | |
| BVPS (₹ ) | 43.8 | 45.3 | 45.8 | 45 | 107.1 | 92.2 | 97.6 | 112.9 | 130.3 | 141.4 | 151.7 | |
| YoY Gr. Rt. % | - | 3.3% | 1.2% | -1.8% | 138.2% | -14% | 5.8% | 15.8% | 15.4% | 8.5% | - | |
| To view Net Profit/Total Funds (%) Colour Rating Guide click here ⓘ | ||||||||||||
| Net Profit/Total Funds (%) | 5.8 | 9.6 | 7.5 | 12.7 | 4.7 | 0.8 | 1.7 | 3.3 | 3.4 | 2.3 | 0 | |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Interest Income | 51.6% | 9.3% | 10.7% | 13.5% | ||||||||
| Adj EPS | 19.1% | 1.7% | 19.3% | -27.6% | ||||||||
| BVPS | 13.9% | 5.7% | 13.2% | 8.5% | ||||||||
| Share Price | 7.8% | 38.3% | 1.8% | -12.6% | ||||||||
| RATIOS \ YEARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Margins | ||||||||||||
| Net Profit Margin (%) | 90.1 | 81.6 | 98.7 | 87.2 | 15.3 | 5.6 | 10.1 | 18.3 | 19.9 | 12.7 | -6.5 | |
| Performance Ratios | To view Performance Ratios Colour Rating Guide click here ⓘ | |||||||||||
| Return on Equity (%) | 7.2 | 12 | 9.5 | 14.4 | 18.1 | 4.2 | 9.3 | 18.1 | 16.9 | 11 | -4.4 | |
Total Income has increased 10.67 CAGR in last 3 years
Net Profit has increased 19.25 CAGR in last 3 years
Return on Equity is Poor
Net NPA to Net Advances has increased in last 3 years
Total income growth is poor in last 4 quarters
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | -6.7 | 12.8 |
| TTM Sales (₹ Cr.) | 4,337 | 10,481 |
| BVPS (₹.) ⓘ | 151.7 | 286.8 |
| Reserves (₹ Cr.) ⓘ | 6,359 | 12,100 |
| P/BV ⓘ | 2.47 | 1.30 |
| PE ⓘ | 0.00 | 29.18 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 280.95 / 560.50 |
| All Time Low / High (₹) | 14.47 / 847.63 |
| Market Cap (₹ Cr.) | 15,888 |
| Equity (₹ Cr.) | 85 |
| Face Value (₹) | 2 |
| Industry PE ⓘ | 59.9 |
| Mar'24 | YoY Gr. Rt. % | Jun'24 | YoY Gr. Rt. % | Sep'24 | YoY Gr. Rt. % | Dec'24 | YoY Gr. Rt. % | |
|---|---|---|---|---|---|---|---|---|
| Operating Income | 1,386 | 29.5 | 1,012 | -0 | 999 | -5.5 | 940 | -18.9 |
| Adj EPS (₹) | 4.20 | -38.9 | -0.53 | -113.7 | -0.72 | -120.7 | 0.38 | -88.7 |
| Net Profit Mgn % | 11.91 | -1324 bps | -2.24 | -1720 bps | -3.08 | -1601 bps | 1.70 | -966 bps |
IIFL Finance Ltd is an Indian diversified Non-Banking Financial Company (NBFC) and its subsidiaries are involved in the lending and mortgage business. The company provides a comprehensive range of products including home loans, gold loans, business loans, microfinance, capital market finance, developer and construction finance.
Industry Overview
Demand for credit is high in underpenetrated low & middle income population. Affordable housing (usually 5-25 Lakh ticket size) credit for low income group,this segment has estimated shortage 100mn units in 2022 as compared to 25mn units in FY07, where in 95% of the housing shortage is expected to be in EWS and LIG segment. Credit demand in this segment is expected to be 23.7 Lakh Cr. Under Loan against property by MSME credit demand is expected to be 3.1 Lakh Cr with 64 Mn MSMEs with only 14% having access to credit & 40% with lack of collateral. Total MSME demand for credit stands at 25 Lakh cr.
As of FY23, Indian households possess 14% (28,000 tonnes) of the world's gold, in terms of value, India's share amounts to Rs 130 trillion, with Rs 85 trillion attributed to jewellery. However, only approximately 20% of this gold is pledged as collateral. The unorganized sector has a stronghold on the majority share of 65%, while the remaining 35% is managed by organized players such as banks and non-banking financial companies (NBFCs). With the current organized market operating at a mere 7% of the total gold holdings, even a marginal increase of 1% in penetration could result in approximately 15% growth for the entire organized segment. The organized market has AUM of around Rs 5.7 trillion as of FY23.
Business Segment
On Book Lending
IIFL acts as traditional NBFC lending to various segments like Affordable Housing, Microfinance, Gold Loan, and Construction Loans. IIFL usually lends to middle to low income section of economy.
Off Book Lending
IIFL has created a significant portion of loan book off its book, 39% of it AUM. It does by securitising, assignment or co-lending these loans to different financial institutions. Usually firm sell their loans to different banks/NBFC to raise funds, by providing a yield to these buyers of loans. This model allows it to grow its book faster, without having to raise equity for the same. It sells these loans in different segment by providing a yield usually in range of 8-9% to different entities and passes credit cost to buyer of these loans, although it needs to create a certain provision (credit enhancement given to buyer in form of reserves) against non-performing loans. IIFL gets fee for servicing, processing and sourcing these loans.
While in co-lending, IIFL sources loans and lends it collaboration with Bank or NBFC. This segment yields and NIM are function of weighted average of cost of borrowing, and credit cost is shared between proportionately between lenders. IIFL gets fee for servicing, processing and sourcing these loans.
Business Performance
|
(In Cr) |
FY23 |
FY22 |
FY21 |
|
Advances |
40,102 |
34,042 |
33,902 |
|
Net Interest Income (NII) |
3,018 |
2,371 |
2,102 |
|
GNPA |
1.84% |
3.15% |
2.14% |
|
PAT |
1,608 |
1,188 |
761 |
|
Off-Book AUM |
24,536 |
17,143 |
11,076 |
|
Borrowing |
39,604 |
35,725 |
32,264 |
Competition
IIFL faces competition from Canfin, Aavas, various afforadable housing loan NBFC/banks. In MFI segment from CreditAccess, Equitas SFB and others, while in gold loans from Manappuram and Muthoot.
Risks
Larger provisions for off-book assets and taking losses first can destroy equity value for IIFL.
Lower sourcing and servicing fee earned for off book asset.
Inferior quality assets on its book, with higher probability of losses.
Distribution reach and understanding of different loan segments, can hurt IIFL’s underwriting.
| Company Name | CMP(₹) | |||||||
|---|---|---|---|---|---|---|---|---|
| Paul Merchants | 785 | -12.1 (-1.5%) | Small Cap | 6,502 | 26.5 | 0.4 | 30.1 | 0.5 |
| JM Financial | 102.8 | -1.4 (-1.3%) | Small Cap | 4,761 | 4 | 0.6 | 26 | 1.1 |
| IIFL Finance | 365.4 | -8.6 (-2.3%) | Small Cap | 4,604 | -6.7 | 12.7 | - | 2.5 |
| Altius Telecom Infra | 148 | 0 (0%) | Small Cap | 4,146 | - | 100.9 | - | - |
| Embassy Office Parks | 380.2 | 0.4 (0.1%) | Small Cap | 3,816 | - | 25.3 | - | - |
| INDIGRID Infra Trust | 147.2 | -0.6 (-0.4%) | Small Cap | 2,717 | - | 38.6 | - | - |
| Authum Inv. & Infra | 1,745 | -42.6 (-2.4%) | Small Cap | 2,412 | 234.3 | 121.2 | 7.6 | 2.3 |
| Capri Global Capital | 160.1 | -6.1 (-3.6%) | Small Cap | 2,313 | 4.7 | 12.1 | 35.8 | 3.3 |
| Centrum Capital | 25.8 | -0.3 (-1.2%) | Small Cap | 2,207 | -4 | -3.2 | - | 3.8 |
| Mindspace Business | 380 | 0.7 (0.2%) | Small Cap | 1,400 | - | 83 | - | - |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income | 110 | 211 | 143 | 271 | 2,998 | 2,743 | 3,439 | 4,323 | 4,169 | 4,688 |
| Interest Income | 109 | 211 | 143 | 246 | 2,953 | 2,650 | 3,397 | 4,080 | 4,059 | 4,604 |
| Other Income ⓘ | 1 | 0 | 0 | 25 | 45 | 93 | 42 | 243 | 110 | 84 |
| Expenditure ⓘ | 9 | 21 | 2 | 25 | 2,490 | 2,511 | 3,065 | 3,355 | 3,126 | 3,958 |
| Interest Expense ⓘ | 4 | 6 | 0 | 5 | 1,370 | 1,251 | 1,559 | 1,625 | 1,460 | 1,885 |
| Operating Expenses ⓘ | 4 | 14 | 2 | 16 | 758 | 792 | 731 | 989 | 1,292 | 1,417 |
| Provisions | 0 | 0 | 1 | 4 | 362 | 468 | 775 | 741 | 375 | 656 |
| Exceptional Items ⓘ | 0 | 0 | 0 | 0 | 115 | 5 | 53 | 0 | 0 | 0 |
| Profit Before Tax ⓘ | 101 | 191 | 141 | 246 | 623 | 237 | 427 | 967 | 1,043 | 730 |
| Taxes ⓘ | 3 | 18 | 0 | 32 | 172 | 88 | 85 | 222 | 237 | 145 |
| Profit After Tax | 98 | 172 | 141 | 215 | 451 | 149 | 343 | 745 | 805 | 585 |
| Adjusted EPS (₹) | 3.1 | 5.3 | 4.3 | 6.5 | 13.7 | 3.8 | 8.8 | 19.1 | 20.6 | 14.9 |
| Dividend Payout Ratio (%) | 95% | 78% | 102% | 74% | 35% | 57% | 33% | 18% | 19% | 26% |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Equity Capital | 1,400 | 1,476 | 1,499 | 1,482 | 3,531 | 3,608 | 3,821 | 4,427 | 5,115 | 5,595 |
| Share Capital ⓘ | 62 | 63 | 64 | 64 | 64 | 76 | 76 | 76 | 76 | 76 |
| Reserves ⓘ | 1,338 | 1,413 | 1,436 | 1,418 | 3,467 | 3,532 | 3,745 | 4,351 | 5,039 | 5,519 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Long Term Borrowings | 336 | 355 | 298 | -7 | 8,133 | 11,355 | 11,924 | 14,078 | 16,480 | 18,000 |
| Current Liabilities | 20 | 15 | 91 | 17 | 5,862 | 4,184 | 6,259 | 4,473 | 2,457 | 3,917 |
| Trade Payables | 0 | 0 | 1 | 1 | 53 | 48 | 66 | 96 | 132 | 140 |
| Short term borrowings | 0 | 0 | 0 | 0 | 4,670 | 3,087 | 4,458 | 2,311 | 1,194 | 2,278 |
| Other Liabilities | 0 | 0 | -1 | -1 | -4,711 | -3,134 | -4,525 | -2,407 | -1,326 | -2,418 |
| Total Liabilities ⓘ | 1,756 | 1,845 | 1,890 | 1,493 | 17,537 | 19,147 | 22,004 | 22,978 | 24,052 | 27,512 |
Assets | ||||||||||
| Non Current Asset | 1,708 | 1,764 | 1,779 | 1,459 | 1,678 | 2,273 | 2,550 | 4,173 | 5,625 | 6,796 |
| Loan Asset | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non Current Asset ⓘ | 1,708 | 1,764 | 1,779 | 1,459 | 1,678 | 2,273 | 2,550 | 4,173 | 5,625 | 6,796 |
| Current Asset | 48 | 82 | 110 | 34 | 15,859 | 16,874 | 19,455 | 18,805 | 18,427 | 20,716 |
| Current Investment | 0 | 0 | 78 | 0 | 199 | 651 | 0 | 0 | 143 | 84 |
| Other Current Asset | 48 | 82 | 32 | 34 | 15,660 | 16,223 | 19,455 | 18,805 | 18,284 | 20,632 |
| Total Assets ⓘ | 1,756 | 1,845 | 1,890 | 1,493 | 17,537 | 19,147 | 22,004 | 22,978 | 24,052 | 27,512 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 125 | 99 | 87 | 55 | 2,539 | 109 | -795 | 3,556 | -1,757 | -1,556 |
| Cash Flow From Investing Activity ⓘ | -112 | -41 | 52 | 177 | 209 | -722 | 459 | -927 | -1,468 | -2,055 |
| Cash Flow From Financing Activity ⓘ | 28 | -96 | -134 | -217 | -2,488 | 805 | 1,782 | -324 | 631 | 2,711 |
| Net Cash Flow ⓘ | 41 | -38 | 5 | 15 | 260 | 192 | 1,446 | 2,305 | -2,594 | -900 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Operational & Financial Ratios |
||||||||||
| EPS (₹) | 3 | 5 | 4 | 7 | 14 | 4 | 9 | 20 | 21 | 15 |
| DPS (₹) | 3 | 4 | 5 | 5 | 5 | 2 | 3 | 4 | 4 | 4 |
| BVPS (₹) | 45 | 47 | 47 | 46 | 110 | 95 | 100 | 116 | 134 | 146 |
Performance Ratios | ||||||||||
| ROA (%) | 5.8 | 9.6 | 7.5 | 12.7 | 4.7 | 0.8 | 1.7 | 3.3 | 3.4 | 2.3 |
| ROE (%) | 7.2 | 12.0 | 9.5 | 14.4 | 18.1 | 4.2 | 9.3 | 18.1 | 16.9 | 11.0 |
| ROCE (%) | 7.6 | 13.3 | 9.2 | 16.6 | 22.1 | 8.6 | 10.4 | 12.7 | 11.6 | 10.9 |
Valuation Parameters | ||||||||||
| Price/Book(x) | 4.0 | 4.4 | 8.5 | 15.2 | 3.9 | 0.8 | 2.8 | 2.5 | 3.6 | 2.3 |
IIFL Finance Limited (Erstwhile ‘IIFL Holdings Limited’) is one of the leading players in the Indian financial services space. Prior to the Composite Scheme of Arrangement (effective May 13, 2019), IIFL Finance Limited was engaged in the business of financing, asset and wealth management, retail and institutional broking, financial products distribution and investment banking through its various subsidiaries.
IIFL Finance is a first generation venture which started as a research firm in 1995. IIFL Finance Limited was a pioneer in the retail equity broking industry with its launch of 5paisa trading platform which offered the lowest brokerage in the industry and freedom from traditional ways of transacting. IIFL’s evolution from an entrepreneurial start-up in 1995 to a full range diversified financial services group is a story of steady growth by adapting to the dynamic business environment, without losing focus on its core domain of financial services.
Building on the strength of over 25 years of expertise, IIFL Finance Limited (IIFL Finance) is one of India’s largest and most trusted financial services provider. After the demerger of IIFL Securities Limited and IIFL Wealth Management Limited, IIFL Finance, along with its subsidiaries IIFL Home Finance and Samasta Microfinance, is focussed on consumer lending.
Business area of the company
IIFL Finance offers diverse product spectrum comprises home loans, gold loans, business loans including loans against property and MSME financing, microfinance, construction and real estate and capital markets finance. With a strong foundation, retail focused strategy, and transparent and ethical business operations, the company continues to deliver excellent service offerings and sustainable growth.
Products
Awards
FY2018-19
FY2019-20
Milestones
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
A 5-Step Journey to Financial Freedom
Read this Book for Free.*This Offer is only valid till this month only. Claim it now.
Read NowDid you know that market corrections can actually present great opportunities to buy high-quality stocks at discounted prices? By taking advantage of these times of volatility, you can position your portfolio for long-term growth.
At MoneyWorks4me Portfolio Advisory, we specialize in helping investors navigate market fluctuations and build a strong, diversified portfolio. With our collaborative approach, you can maintain control over your investments while benefiting from our expertise and guidance.
If you're interested in learning more and with a minimum portfolio size of 25 L+, we can help you manage your portfolio, no matter the size. let's connect and discuss how we can work together. And as a bonus, we're offering a FREE Portfolio Review using our "Portfolio Manager" tool during our conversation.
So why wait?
Let's get started today and take your portfolio to the next level!
#Limited slots available.
Do you want to Invest in Undervalued Handpicked stocks and earn high Returns?
Winning and long lasting portfolio is made of Quality Stocks, but how simple is that?
As an Investor most important decision making questions are?
Make an informed decision for Stocks
Invest using an intelligent system with powerful data-driven tools that help you identify opportunities and make informed buy-hold-sell decisions
Buy quality Stocks when they are available at reasonable prices and supported by an upward price trend and Sell when they are Overvalued using the Decizen Rating System. Covers 3500+ stocks
Make an informed decision for Funds
*Color code for outperformance consistency
*Number is average 3 year rolling returns
Want to invest successfully in stocks?
How the heck do you select a solution that ensures it?
Check how good is your current solution!Does it get you focused on meeting your financial goals?
Does it get you focused on meeting your financial goals?
Investing is to means to funding your goals. Your solution must help you get clarity of your goals and how you should invest to reach them. Does your solution include Financial Planning?
Does it have a way of investing that you are confident will work for you?
Does it have a way of investing that you are confident will work for you?
Are you clear of the rationale behind recommendations?
Do you have a way of answering the most important questions: Which stocks are worth investing in, at what price and how do you build your portfolio?
Does it make it easy to find opportunities without wasting your time?
Does it make it easy to find opportunities without wasting your time?
Does it share the tools to enable decision making transparently?
Does it share the tools to enable decision making transparently?
Finally stock investing is all about make informed decisions.
Does your solution provide easy-to-use decision enabling data, information and tools?
Does it help you become a better investor
Does it help you become a better investor
100% Secure Process
Account Discovery
- OTP from CAMS
Account Linking for Stocks & MF
- One OTP per link Eg. NSDL, CDSL, CAMS, KFin etc.
One Click Upload for your Current Portfolio and Future Transactions!
Take control of your financial future and start building your ideal portfolio today
- with reliable research at your fingertips.
Unlock the Power of Core Superstars Now →
Download APP
