Check Before You Invest : Edelweiss Financial Services Ltd

Q: Which industry/sub-sector does Edelweiss Financial Services Ltd belong to?

Edelweiss Financial Services Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q: Is Edelweiss Financial Services Ltd a good quality company?

Edelweiss Financial Services Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Edelweiss Financial Services Ltd undervalued or overvalued?

Edelweiss Financial Services Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 18.96, Historic Median: 19.70. Price to Book, Current: 2.4, Historic Median: 1.63. Price to Sales, Current: 1.37, Historic Median: 1.18. EV to EBITDA, Current: 2.83, Historic Median: 3.65

Q: Is Edelweiss Financial Services Ltd a good buy now?

Edelweiss Financial Services Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of Edelweiss Financial Services Ltd?

Edelweiss Financial Services Ltd Operating Income growth is -4.4% for FY-2025, which is below its 5-year CAGR of -1.63%, indicating slower growth.

Q: Return on Assets of Edelweiss Financial Services Ltd?

Edelweiss Financial Services Ltd Return on Asset is 1.3%, which is above its 5-year historical median of 1%, indicating improved earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 5.9, Historic Median: 4.78. PPOP (%), Current: 26.68, Historic Median: 26.68. RoA (%), Current: 1.3, Historic Median: 1

Q: Return on Equity (ROE) of Edelweiss Financial Services Ltd?

Edelweiss Financial Services Ltd Return on Equity is 12.6% for FY-2025, which is above its 5-year historical median of 6.2%, indicating the business is making better use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Edelweiss Financial Services Ltd?

Edelweiss Financial Services Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 26.68% for FY-2025, which is in line with its 5-year median(26.68%), indicating stable margins.

Q: Net Profit Margin of Edelweiss Financial Services Ltd?

Edelweiss Financial Services Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 5.9% for FY-2025, which is above its 5-year median( 4.78%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

Edelweiss Financial Services Ltd return on invested capital (ROIC) is 9.23% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

Check Before You Invest : Edelweiss Financial Services Ltd

BSE: 532922 NSE: EDELWEISS ISIN: INE532F01054

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Edelweiss Financial Services Ltd belong to?

Edelweiss Financial Services Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Edelweiss Financial Services Ltd a good quality company?

Edelweiss Financial Services Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Edelweiss Financial Services Ltd undervalued or overvalued?

Edelweiss Financial Services Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	18.96	19.70
Price to Book	2.4	1.63
Price to Sales	1.37	1.18
EV to EBITDA	2.83	3.65

Q.4 Is Edelweiss Financial Services Ltd a good buy now?

Edelweiss Financial Services Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Edelweiss Financial Services Ltd?

Edelweiss Financial Services Ltd Operating Income growth is -4.4% for FY-2025, which is below its 5-year CAGR of -1.63%, indicating slower growth.

Q.2 Return on Assets of Edelweiss Financial Services Ltd?

Edelweiss Financial Services Ltd Return on Asset is 1.3%, which is above its 5-year historical median of 1%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	5.9	4.78
PPOP (%)	26.68	26.68
RoA (%)	1.3	1

Q.3 Return on Equity (ROE) of Edelweiss Financial Services Ltd?

Edelweiss Financial Services Ltd Return on Equity is 12.6% for FY-2025, which is above its 5-year historical median of 6.2%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Edelweiss Financial Services Ltd?

Edelweiss Financial Services Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 26.68% for FY-2025, which is in line with its 5-year median(26.68%), indicating stable margins.

Q.5 Net Profit Margin of Edelweiss Financial Services Ltd?

Edelweiss Financial Services Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 5.9% for FY-2025, which is above its 5-year median( 4.78%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

Edelweiss Financial Services Ltd return on invested capital (ROIC) is 9.23% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 13.5%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Edelweiss Financial Services Ltd?

Edelweiss Financial Services Ltd Total Asset growth is -3.7% for FY-2025, which is above its 5-year CAGR of -5.66%, indicating faster growth.

Ownership & governance

D: Promoter shareholding and pledge status of Edelweiss Financial Services Ltd?

Q.1 Promoter shareholding and pledge status of Edelweiss Financial Services Ltd?

Promoters hold 32.26% of the Edelweiss Financial Services Ltd, with 8.90% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Edelweiss Financial Services Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Edelweiss Financial Services Ltd vs Industry Peers?

Edelweiss Financial Services Ltd AUM CAGR is -5.66%, compared to the 5-year industry median CAGR of 9.68%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Edelweiss Financial Services Ltd vs industry peers

Edelweiss Financial Services Ltd profit metrics are in line with the industry median level of 4.73%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	5.9	12.79
PPOP (%)	26.68	-
RoA (%)	1.3	1.4

Q.3 Operating efficiency of Edelweiss Financial Services Ltd vs industry peers?

Edelweiss Financial Services Ltd ROCE (10.3) is above the industry median of (4.1); while the current ROE (6.2) are above than the 5-year average Industry ROE (2.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	5.9	12.79
PPOP (%)	26.68	-
RoA (%)	1.3	1.4
ROCE (%)	14.3	4.1
ROE (%)	12.6	2.2

Valuation & price assessment

Q.1 Stock return of Edelweiss Financial Services Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	5%	11.7%	20.2%	9.3%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	18.96	19.70	29.12
Price to Book	2.4	1.63	1.11
Price to Sales	1.37	1.18	9.10
EV to EBITDA	2.83	3.65	11.77

Q.3 Valuation ratios of Edelweiss Financial Services Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 2.4 is higher than its historical median of 1.63, indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : Edelweiss Financial Services Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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