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 8-year financial track record.

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

IIFL Capital Services Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

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

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 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.3 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.4 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.5 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	0.3	0.27
ROE	34.1	28.6
ROCE	34.7	33.1
Cash Conversion Cycle	6 days	-23 days

Q.6 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.7 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.8 Net Profit Margin of IIFL Capital Services Ltd?

IIFL Capital Services Ltd Net Profit Margin is 29.64% for FY-2025, is above with 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

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 with the industry average of 0.11, 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

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)

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 18.37%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	11.3	18.4
Gross Profit Growth	23	24.6
Operating Profit Growth	14.7	28.8
Net Profit Growth	39	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.3	0.26
ROE	34.1	8.05
ROCE	34.7	10.2
Cash Conversion Cycle (days)	5.89	-107

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 43.04% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	43%	75%	36.6%

Q.3 Valuation ratios of IIFL Capital Services Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	16.94	10.37	20.01
Price to Book	3.24	2.96	1.64
Price to Sales	4.24	2.98	5.20
EV to EBITDA	6.3	3.10	6.89

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