IL&FS Investment Managers Limited

Financial Services — Financial Conglomerates · NSE

₹7.91+₹0.03 (+0.38%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of IL&FS Investment Managers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

IL&FS Investment Managers Limited is a private equity, venture capital, infrastructure and real estate investment firm specializing in seed capital, late venture, growth capital, expansions, middle market, restructuring, stressed assets, recapitalizations, buyouts investments, and real estate investments in high-growth real estate assets including office, residential, retail, integrated townships, special economic zones, hospitality, and mixed-use properties.

IndustryFinancial Conglomerates

SectorFinancial Services

Employees12

Annual revenue₹55 Cr

How does it make money?

Turns over ₹55 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹4.58 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.58 Cr

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.

Compared side by side in Peers ↓

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.

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 -15% while net margin moved -62% 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-15%

Margin effect-62%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 5.2% a year
✗ Profit has declined at 31.4% a year

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

36/ 100

Expensive

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

52.7x

3Y Median

27.2x

40 monthly readings · mean 30.2x · range 14.9x–75.4x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 94% above its 3y median of 27.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 210% above the peer median of 17.0x.

vs. its own history

Expensive

27.2x median over 40 months · +94%

vs. sector peers

Expensive

17.0x median of 4 peers · +210%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

18.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 20.2% to 24.6% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 5.5% to 2.0% — each rupee of shareholder capital earns less than it did.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 68% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 20.2% to 24.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

The price already assumes success
The stock trades 94% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 5.5% to 2.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro 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

1EBITDA margin holds above 23%✓ 24.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 2.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 27.2x✗ 52.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 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

6 good · 2 neutral · 3 weak

Market Cap

₹248 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

52.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.31x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.15

Profitable

Profitable on a per-share basis

ROE

2.0%

Weak

Weak capital efficiency

ROCE

3.5%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

14.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

100.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

15.17%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹21 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.8%

Weak

Thin margins leave little room for error

Net Margin

7.4%

Average

Average bottom-line conversion

Current Ratio

5.75

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

38%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

7.9 / 8.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

54.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹64 Cr	₹52 Cr	₹29 Cr	₹55 Cr	-5.2%
EBITDA	₹13 Cr	-₹2 Cr	-₹9 Cr	₹13 Cr	+1.2%
EBITDA Margin	20.2%	-4.2%	-31.2%	24.6%	—
PAT (Net Profit)	₹12 Cr	₹10 Cr	₹13 Cr	₹4 Cr	-31.4%
EPS	₹0.38	₹0.32	₹0.42	₹0.12	-31.9%
ROE	5.5%	5.0%	6.4%	2.0%	—
ROCE	5.1%	1.0%	-0.5%	3.5%	—
Free Cash Flow	-₹1 Cr	-₹6 Cr	-₹9 Cr	₹21 Cr	—

🔴 Revenue has shrunk at 5.2% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.2% a year).

🟢 EBITDA Margin has risen from 20.2% to 24.6% over 3 years (+4.4 pts).

🔴 PAT (Net Profit) has shrunk at 31.4% a year over 3 years.

🔴 EPS has shrunk at 31.9% a year over 3 years.

🔴 ROE has fallen from 5.5% to 2.0% over 3 years (-3.5 pts).

🔴 ROCE has fallen from 5.1% to 3.5% over 3 years (-1.7 pts).

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹21 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹244 Cr

Total Liabilities

₹32 Cr

Total Debt

—

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹21 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

51.9%

Corporate Actions

Dividend Rate

₹1.2

Ex-Dividend Date

15 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

3 mixed3 general

IL&FS Investment Managers Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 07 AugAnalyst view

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

IL&FS Investment Managers Ltd is Rated Sell

MarketsMojo, 06 Oct

IL&FS Inv Managers Stock Jumps 11% on Q2 Profit Turnaround

HDFC Sky, 14 NovResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Shriram Asset Management Company (SRAMSET) Share Price Near 52-Week Low as Price Stays Under Key Averages

Univest, 16 Oct

TAMBOLIIN Stock Price and Chart — NSE:TAMBOLIIN

TradingView, 20 Apr

IL&FS Investment Managers Share Price Target 2026: Rs 10.3 Analyst Forecast

Univest, 23 JunAnalyst view

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

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Valuation · Risk

WeakGrowth · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

2 of 3 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 27.2x · see Key things to watch ↑