Edelweiss Financial Services Ltd. is a financial services company offering a wide range of financial products and services to clients including individuals, corporations and institutions.Market Capitalisation
The market capitalisation of Edelweiss Financial Services Ltd., as of 1 August 2018, is a little over Rs.28,700 crore.
Company’s Wealth and Recent Performance
- The company reported its total revenue to be at Rs.8,623 crore for the financial year 2017-18, up by 30% compared to the previous financial year 2016-17. The company’s Profit after Tax (PAT) grew by 46% (Rs.890 crore compared to Rs.609 crore reported in the previous fiscal).
- The financial services company has a total asset base of Rs.55,100 crore as of FY 2017-18 and its return on equity excluding insurance stands at 22.1% for the fiscal ending 2018.
- The FY2018 also marked the first time when the company raised fresh equity at the group level through their Qualified Institutional Placement (QIP) in Q3, which witnessed the participation of investors such as HDFC Mutual Fund, Kotak Mutual Fund and CDPQ along with the existing investors.
- For the FY18 Q4, the company has reported a consolidated sales of Rs.2,557.71 crore, up by 26.29% compared to the previous quarter sales of Rs.2,025.25 crore and up by 34.84% from last year for the same quarter sales of Rs.1,896.80 crore.
- The company’s key Revenue Segments include Fees and Other Charges which contributed over Rs.220 crore to Sales Value i.e. 49% of Total Sales Value.
Edelweiss Financial Services Ltd. Stock Trends in 2018
- On 1 January 2018, the opening stock price of Edelweiss Financial Services was Rs.298.80 which declined to Rs.286.05 by the 3rd of the month on the National Stock Exchange (NSE). By mid-Jan, the stock price fell nearly by 15 points to Rs.284.90 down by 1.43%. The stock closed at Rs.286.90 down by 3.12% compared to the opening price.
- On the opening day of February, the price of the stock stood at Rs.281.80. By 5th of the month, prices declined sharply to post at Rs.256 down by 4.71%; however, by mid-February, it rose by 5.68% from the previous fall to Rs.274. At the end of the month, the stock recovered to Rs.262.80 up by 1.13%.
- During the last quarter of FY 2018, the stock price opened at Rs.268.75 only to slide over the next few days by 4.20% by the end of the second week. Stock prices continued to fall significantly over the third week; however, it recovered by the end of the month at Rs.237 despite a reduction of 2.10%.
- The second quarter of 2018 with stock prices opening at Rs.242.20 before closing at Rs.250.90 by the end of the day. By the end of the month, the stock price stood Rs.286.80 with a gain of 0.97% over the opening price of the day.
- In the second month of Q2 FY 2018, the stock opened at Rs.286.80 and closed at Rs.282.65 by the end of the day. By the end of the month, the stock price of the company closed at Rs.326.30 a significant recovery compared to the opening date price.
- During the last month of the second quarter, the stock price opened at Rs.320. The stock declined initially before closing the month at Rs.294.50 recovering by nearly 7.15% during the day.
Edelweiss Financial Services Trends in 2016 and 2017
- The opening price of the stock on 1 January 2016 was Rs.58.30 on NSE. By mid-January, the stock price had fallen by nearly 5 points at Rs.53.50. By the end of the month, the price of the stock managed to recover to post at Rs.52.10. The fluctuations continued over the course of the second month in Q1 FY 2016; however, it declined by the end of the month to stand Rs.47.45. On 1 March 2016, the stock price opened at Rs.49.95 and moved upwards considerably to end the month on a high of Rs.56.90.
- During the second quarter of 2016, the stock price of the company opened at Rs.56.35 on 1 April 2016. By the end of the month, the price grew to stand at Rs.58.05. The upward trend continued over the next month which ended at Rs.71.25. The trend continued in the month of June 2016 with the stock price opening at Rs.71.75 and moved upwards over the course of the month before ending at Rs.76.
- The first month of the third quarter of FY 2016 witnessed a slight variation of the stock price which opened at Rs.76.40 and closed at Rs.92.95. By the end of July, the stock price grew significantly to close at Rs.94.65 up by nearly 4 points compared to the opening price. In August, the stock price moved upwards considerably to close at Rs.118.65. In September 2016, the opening price of the stock stood at Rs.115.45 with an upward movement over the month before it closed at Rs.106.90.
- On the opening day of the fourth quarter of 2016, the stock price stood at Rs.115.70 on 2 October 2016. The stock gained significantly over the month to end at Rs.122.80. On 1 November 2016, the stock price opened at Rs.123.90 and fell by mid-month only to gain by the end of the month to close at Rs.103.40. In December, the stock opened at Rs.102.45 and moved downwards by mid-December; however, it closed slightly higher by the end of the month at Rs.95.30.
- On 2 January 2017, the stock price of the company stood at Rs.98.55 which rose considerably over the month to close at Rs.112. In February 2017, the stock price stood at Rs.110.85 and closed the month at Rs.145. On 1 March 2017, the stock price of Edelweiss Financial Services stood at Rs.137.40 and grew to end at Rs.156.50.
- During the first month of Q2 2017, the scrip price stood at Rs.158.50 on 3 April 2017. The price of stock grew significantly over the month and closed at Rs.171. On 2 May 2017, the stock price stood at Rs.169.30 and moved upwards over the month and closed at Rs.173.70 up by 4 points over the month. The stock price stood at Rs.173.70 on 1 June 2017 before moving upwards and closed at Rs.193.50.
- On 3 July 2017, the stock price of the company opened at Rs.191.45 and closed at the end of the month 12 points more at Rs.204. On 1st of August, the stock price stood at Rs.206 up by 2 points over the preceding day. By the end of the month, the stock price of the company grew significantly to close at Rs.243 up sharply by 37 points compared to the opening day’s price. In September, the stock price gained significantly to close at Rs.271.
- On 4 October 2017, the stock price of the company stood at Rs.276.40 and moved upwards over the course of the month; however, it declined by the end of the month to stand at Rs.272. On 1 November 2017, the stock price opened at Rs.283.10 and end at Rs.283 with not many variations over the month. During the last quarter of 2017, the stock price of the company opened at Rs.295 and closed the month and the year at Rs.294.95.
Should you invest in Edelweiss Financial Services?
- For the year ended on 31 March 2018, Edelweiss Financial Services Ltd. reported a good incline in revenues from operations. The company has consistently performed with an upward trend over the last couple of years.
- The total revenue of the company for the year ended March 2018 stood at Rs.8,581 crore up by more than Rs.2,000 crore reflecting a robust growth year-on-year.
- The profit after tax was up by 46% from Rs.609 crore to Rs.890 crore with the return on equity excluding insurance moving upward at 22.1%.
- The company’s management team are highly experienced and are competent to execute strategies. The team has led the company through some of the important developments and have managed to keep the stock prices on an upward trend.
- The performance of the company’s stock has been on the rise over the last three years which is on an upward trajectory and is capable of reaching new highs.
Edelweiss Financial Services is based out of India’s financial capital, Mumbai founded in 2008. The company is registered with the National Stock Exchange of India, the Bombay Stock Exchange and the MCX Stock Exchange. The company offers Retail and Corporate Credit, Investment and Advisory as well as insurance. The company has a network of over 450 offices, with more than 10,000 employees and has a presence across all major cities in India.
History of the Company
Edelweiss Financial Services Ltd. was founded in 2008 and received final regulatory approval from the Securities and Exchange Board of India (SEBI) to begin its mutual fund business in the same year. The company acquired retail broker Anagram Capital Ltd. in 2010. On December 2012, Edelweiss Financial Services Ltd. was listed under National Stock Exchange.
Management of the Company
Rashesh is the co-founder and is also the Chief Executive Officer (CEO) of Edelweiss Financial Services Ltd. He has more than two and half decades of diverse experience in the financial markets. Rashesh Shah has a Master in Business Administration from the Indian Institute of Management, Ahmedabad. He also holds a diploma in International Trade from the Indian Institute of Foreign Trade.
Himanshu Kaji is the Executive Director and Chief Operating Officer (COO) of the company. He comes with over three decades of experience in business strategies, risk, finance, regulatory frameworks, technology, process re-engineering and implementation across the financial services space. Himanshu is a Chartered Accountant and holds a Post-Graduate Diploma in Securities Law.
Venkatachalam Ramaswamy is the co-founder and the Executive Director of the company with over two and half decades of experience in the industry. He co-heads the Global Wealth and Asset Management business of the company. Venkatachalam has an MBA from the University of Pittsburgh, USA and holds a Bachelor’s degree in Electronics Engineering.
Edelweiss Financial Services Ltd. in NSE, BSE and Listings
The equity shares of Edelweiss Financial Services Ltd. are available for trading on NSE and the Bombay Stock Exchange. The codes for Edelweiss Financial Services are as follows:
- NSE Code: EDELWEISS
- BSE Code: 532922
- ISIN: INE231311631
- Sector: Finance
Coming to the stock market indices, Edelweiss Financial Services comprises the following:
- S&P CNX 500
- CNX Midcap
Edelweiss Financial Services Limited
Off. C.S.T. Road,
Mumbai - 400098
General Enquiry - +91 22 4009 4400
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