Check Before You Invest : IIFL Capital Services Ltd

Q: Which industry/sub-sector does IIFL Capital Services Ltd belong to?

IIFL Capital Services Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.

Q: Is IIFL Capital Services Ltd a good quality company?

IIFL Capital Services Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is IIFL Capital Services Ltd undervalued or overvalued?

IIFL Capital 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: 10.48. Price to Book, Current: 3.47, Historic Median: 3.05. Price to Sales, Current: 4.43, Historic Median: 3.04. EV to EBITDA, Current: 6.58, Historic Median: 3.22

Q: Is IIFL Capital Services Ltd a good buy now?

IIFL Capital Services Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of IIFL Capital Services Ltd?

IIFL Capital Services Ltd revenue growth is 11.3% for FY-2025, which is below its 5-year CAGR of 27.14%, indicating slower growth.

Q: Gross Profit margin of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 40.7% for FY-2025, which is above its 5-year median of 37.8%, indicating increasing margins.

Q: Operating Profit Margin of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 41.58% for FY-2025, which is above its 5-year median of 39.25% indicating increasing margins.

Q: Net Profit Margin of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Net Profit Margin is 29.64% for FY-2025, is above its 5-year median of 24.82%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 40.7, Historic Median: 37.8. Operating Profit Margin (%), Current: 41.58, Historic Median: 39.25. Net Profit Margin (%), Current: 29.64, Historic Median: 24.82

Q: Return on Asset of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Return on Asset is 9%, which is above its 5-year historical median of 7.4%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Return on capital employed is 34.7% for FY-2025, which is in line with its 5-year historical median of 33.1%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : IIFL Capital Services Ltd

Snapshot

Q.1 Which industry/sub-sector does IIFL Capital Services Ltd belong to?

IIFL Capital Services Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.

Q.2 Is IIFL Capital Services Ltd a good quality company?

IIFL Capital Services Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is IIFL Capital Services Ltd undervalued or overvalued?

IIFL Capital 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	10.48
Price to Book	3.47	3.05
Price to Sales	4.43	3.04
EV to EBITDA	6.58	3.22

Q.4 Is IIFL Capital Services Ltd a good buy now?

IIFL Capital Services Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of IIFL Capital Services Ltd?

IIFL Capital Services Ltd revenue growth is 11.3% for FY-2025, which is below its 5-year CAGR of 27.14%, indicating slower growth.

Q.2 Gross Profit margin of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 40.7% for FY-2025, which is above its 5-year median of 37.8%, indicating increasing margins.

Q.3 Operating Profit Margin of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 41.58% for FY-2025, which is above its 5-year median of 39.25% indicating increasing margins.

Q.4 Net Profit Margin of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Net Profit Margin is 29.64% for FY-2025, is above its 5-year median of 24.82%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	40.7	37.8
Operating Profit Margin (%)	41.58	39.25
Net Profit Margin (%)	29.64	24.82

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Return on Asset is 9%, which is above its 5-year historical median of 7.4%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Return on capital employed is 34.7% for FY-2025, which is in line with its 5-year historical median of 33.1%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Return on equity is 34.1% for FY-2025, which is above its 5-year historical median of 28.6%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Cash conversion cycle is 6 days, above its 5-year historical median of -23 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.3	0.27
ROE (%)	34.1	28.6
ROCE (%)	34.7	33.1
Cash Conversion Cycle	6 days	-23 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Debt-to-Equity ratio is 0.39, which is above the industry average of 0.05, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Debt to cash flow from operations is 1.08, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of IIFL Capital Services Ltd?

Q.1 Promoter shareholding and pledge status of IIFL Capital Services Ltd?

Promoters hold 30.87% of the IIFL Capital Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does IIFL Capital Services Ltd performance compare with that of its Peers?

Q.1 Revenue growth of IIFL Capital Services Ltd vs industry peers?

IIFL Capital Services Ltd revenue CAGR is 27.14%, compared to the industry median CAGR of 16.32%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	11.3	16.3
Gross Profit Growth (%)	23	24.7
Operating Profit Growth (%)	14.7	36
Net Profit Growth (%)	39	24.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.3	0.26
ROE (%)	34.1	7.6
ROCE (%)	34.7	10.2
Cash Conversion Cycle (days)	5.89	-82

Valuation & price assessment

Q.1 Stock return of IIFL Capital Services Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 36.46% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	36.5%	82.2%	27%

Q.2 Valuation ratios of IIFL Capital Services Ltd vs historical?

The current P/E ratio of 18.96 is higher than its historical median of 10.48, indicating that the stock is trading above its historical average valuation.

Q.3 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	10.48	19.96
Price to Book	3.47	3.05	1.64
Price to Sales	4.43	3.04	5.31
EV to EBITDA	6.58	3.22	6.93

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Check Before You Invest : IIFL Capital Services Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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