Edelweiss Financial Services Limited

Financial Services — Financial Conglomerates · NSE

₹134.00−₹0.47 (−0.35%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Edelweiss Financial Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Edelweiss Financial Services Limited, an investment company, provides financial products and services to corporations, institutions, and individuals in India.

IndustryFinancial Conglomerates

SectorFinancial Services

Employees6,000

Annual revenue₹5,809 Cr

How does it make money?

Turns over ₹5,809 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit. Each of its 6,000 employees supports ₹96.8 lakh of revenue a year, the signature of a people-led business.

Net margin9.4%

Revenue / employee₹96.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROE11.8%

Peer median ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +20% while net margin moved +32% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+20%

Margin effect+32%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 17.9x is within a normal band
• P/E is close to its own historical median of 19.4x

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

61/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

17.9x

3Y Median

19.4x

40 monthly readings · mean 20.0x · range 14.2x–30.4x

Sector Median

17.0x

median of 4 sector peers

🟡Currently trading close to its 3y median of 19.4x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 17.0x.

vs. its own history

Fair

19.4x median over 40 months · -8%

vs. sector peers

Fair

17.0x median of 4 peers · +6%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

17.9x

P/B

2.74x

EV/EBITDA

—

PEG

1.08

Dividend Yield

1.12%

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 5.1% to 11.8%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 6.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Return on equity stays above 10%✓ 11.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
2Revenue growth stays above 5% a year✓ 6.2% CAGR
Latest reported year was 23.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Valuation vs its own median of 19.4x✓ 17.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹12,684 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.9x

Fair

Fairly valued against the generic band

P/B Ratio

2.74x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.47

Profitable

Profitable on a per-share basis

ROE

11.8%

Moderate

Moderate capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

3.20x

High

High leverage

Revenue Growth (YoY)

23.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

27.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.12%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹827 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹134

P/E (Forward)

8.5x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.3%

Average

Average margins

Net Margin

8.4%

Average

Average bottom-line conversion

Beta (vs Nifty)

0.69

Defensive

Steadier than the market

52W Range Position

75%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

136.0 / 130.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

46.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,845 Cr	₹5,629 Cr	₹5,665 Cr	₹5,809 Cr	+6.2%
PAT (Net Profit)	₹344 Cr	₹421 Cr	₹399 Cr	₹547 Cr	+16.7%
EPS	₹3.83	₹4.68	₹5.81	₹7.15	+23.1%
ROE	5.1%	8.8%	9.0%	11.8%	—
Total Debt	₹21,788 Cr	₹20,358 Cr	₹18,004 Cr	₹18,595 Cr	-5.1%
Free Cash Flow	₹2,809 Cr	₹2,806 Cr	₹3,247 Cr	₹827 Cr	-33.5%

🟢 Revenue has grown at 6.2% a year over 3 years.

🟢 PAT (Net Profit) has grown at 16.7% a year over 3 years.

🟢 EPS has grown at 23.1% a year over 3 years.

🟢 ROE has risen from 5.1% to 11.8% over 3 years (+6.7 pts).

🟢 Total Debt has shrunk at 5.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 33.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹43,741 Cr

Total Liabilities

₹37,798 Cr

Total Debt

₹18,595 Cr

Cash & Equivalents

₹3,051 Cr

Operating Cash Flow

₹897 Cr

Capex

-₹70 Cr

Shareholding (proxy)

Institutional Holding

16.1%

Insider Holding

37.1%

Corporate Actions

Next Earnings

11 Nov 2026

Dividend Rate

₹1.5

Ex-Dividend Date

11 Sept 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

2 mixed1 negative3 general

Here's Why We Think Edelweiss Financial Services (NSE:EDELWEISS) Might Deserve Your Attention Today

Simply Wall Street, 22 Aug

EDELWEISS Forecast — Price Target — Prediction for 2027

TradingView, 29 SeptAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Edelweiss Financial Services Share Price: 7 Stock Signals to Watch Now

Univest, 05 Oct

Edelweiss Financial to Raise Rs 300 Crore via NCD Issue

HDFC Sky, 22 SeptFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

Edelweiss Financial shares tank 10% after Q4 net profit drops 17% to Rs 87.60 crore; firm announces divide

The Economic Times, 30 AprResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Edelweiss Financial Services sells 45% Nido Home Finance stake to Carlyle for ₹600 crore

CNBC TV18, 25 Sept

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🟢Financial HealthStrong17/20

🟢GrowthStrong13.1/20

🟡ProfitabilityModerate9.6/15

🟡ValuationFair9.3/15

🟢RiskLow6.7/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓Return on equity stays above 10%11.8%
✓Revenue growth stays above 5% a year6.2% CAGR
✓Valuation vs its own median of 19.4x17.9x today