📅 EduInvesting.in | May 12, 2025
🧾 Ticker: EDELWEISS | Sector: NBFC / Wealth / ARC / Confused Startup Energy
🎭 Tagline: “From Wall Street dreams to DRT recovery forms”
🎬 Intro – “Sir, wealth bhi manage karte hai, loan bhi dete hai, aur default bhi khareed lete hai.”
Edelweiss started out trying to be India’s Goldman Sachs.
But after realising “yeh toh India hai bhai”, they decided to:
- Sell mutual funds ✅
- Do insurance ✅
- Become NBFC ✅
- Buy bad loans ✅
- Start a housing finance biz ✅
- And now… they’re basically a buffet of everything finance.
Problem? Too many dishes. No signature recipe.
🧾 Breakdown of Their “Thoda Thoda Sab Kuch” Business Model:
🏦 Credit Business (52% of revenue)
- Loans to MSMEs, housing, education, corporate
💰 Wealth Management (35%)
- Edelweiss Wealth Services (now demerged via Nuvama)
⚰️ Asset Reconstruction (ARC) (10%)
- Edelweiss ARC — buys NPAs, tries to revive them
🛡️ Insurance (Tiny)
- Ties with Tokio for life & general insurance
📊 FY24 Performance – “Bro, itna business phir bhi itna kam profit?”
| Metric | FY24 | FY23 | YoY Growth |
|---|---|---|---|
| Revenue | ₹5,327 Cr | ₹4,739 Cr | +12.4% |
| EBITDA (Adj) | ₹1,410 Cr | ₹1,220 Cr | +15.5% |
| Net Profit (Consol) | ₹475 Cr | ₹415 Cr | +14.5% |
| Net NPA | 1.2% | 1.6% | 👏 Cleaned up |
| Book Value/Share | ₹115.2 | ₹102.3 | 📈 Book compounding |
🤯 What’s Working:
- ✂️ Post-Demerger Cleanup: They spun off Nuvama Wealth (now a separate listed co.) and focused on core credit
- 🔁 ARC Profits Back: Recovery cycles finally improved = better bad loan returns
- 🏠 Retail Loan Focus: MSMEs, home finance doing better than corporate junk
- 💼 Institutional Funding: New credit lines opened, post-balance sheet rejig
🧨 What’s NOT Working:
- 🔄 Too Many Pivots – One year wealth, one year ARC, next year fintech… bro calm down
- 💰 Low ROE – Returns on equity hovering near 9–10%, below average for NBFC
- 💸 Dilution Risk – Too many fundraises via rights issue & NCDs
- 🐌 Valuation Stagnant – Market still confused about its core identity
💰 Valuation & Financials
| Metric | Value | Comment |
|---|---|---|
| Market Cap | ₹5,200 Cr | Small-midcap crossover |
| P/E Ratio | ~11x | Cheap… but why cheap? |
| Book Value | ₹115 | Trades at ~0.9x book value |
| ROE | ~9.2% | Meh. Just meh. |
| Debt/Equity | ~3.2x | Manageable for NBFC |
Market is treating this like a lost child at D-Mart. Nobody knows where it belongs.
📈 Stock Price Movement
| Timeframe | Move (%) |
|---|---|
| 1 Month | +3.5% |
| 6 Months | +18.2% |
| 1 Year | +9.1% |
| From 52W Low | +28% |
“Steady but sleepy. Not bad. Not exciting. Basically like LIC policies.”
🧠 EduInvesting Verdict – “Yeh stock sab kuch kar raha hai, bas multibagger nahi ban raha.”
If you’re looking for:
- An NBFC that won’t vanish like Yes Bank 2020
- Exposure to ARC space
- Some value unlocking via subsidiaries…
Then Edelweiss is a hold. But not a moonshot.
📌 Buy if: You like boring finance, clean-up stories, and own patience.
📌 Avoid if: You want the next Paytm-style drama or growth thrillers.
