Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Creating Wealth through Alpha and Compounding

Yellowstone Equity

Providing unbiased and independent research on Indian equities to global institutions and individual investors


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Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

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Email: services@yellowstoneequity.com
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Equity Bottom-Up

Edelweiss Financial Services / Equity Bottom-Up

<ul>
<li>Edelweiss reported a decent Q3FY25 with ex-Insurance PAT of INR 185cr, a growth of 16% YoY excluding NBFC PAT. Growth was led by Asset Management and Insurance businesses.</li>
<li>Within the Credit business, the Home Finance business which operates under the brand Nido is scaling up well. It disbursed INR 400cr+ worth of retail loans during Q3FY25.</li>
<li>Edelweiss is focusing on unlocking value and has already filed DRHP for its Alternative Asset Management business. Once approved, it will proceed for an IPO with OFS of INR 1500cr.</li>
</ul>


Edelweiss reported a decent Q3FY25 with ex-Insurance PAT of INR 185cr, a growth of 16% YoY excluding NBFC PAT. Growth was led by Asset Management and Insurance businesses.
Within the Credit business, the Home Finance business which operates under the brand Nido is scaling up well. It disbursed INR 400cr+ worth of retail loans during Q3FY25.
Edelweiss is focusing on unlocking value and has already filed DRHP for its Alternative Asset Management business. Once approved, it will proceed for an IPO with OFS of INR 1500cr.


Edelweiss: Growing Well and Unlocking Value

<ul>
<li>Edelweiss reported a strong Q2FY25 performance led by consistent scaling up of its businesses, especially the asset management businesses. Its insurance businesses are also growing rapidly but are loss-making currently.</li>
<li>The credit businesses are also growing well with the shift to the co-lending model. 75%+ of lending in NBFC is now being done through the co-lending model. </li>
<li>Edelweiss' focus is on value unlocking and debt reduction. The asset management businesses are ripe for unlocking and Edelweiss is exploring a stake sale via IPO for its alternatives business.</li>
</ul>


Edelweiss reported a strong Q2FY25 performance led by consistent scaling up of its businesses, especially the asset management businesses. Its insurance businesses are also growing rapidly but are loss-making currently.
The credit businesses are also growing well with the shift to the co-lending model. 75%+ of lending in NBFC is now being done through the co-lending model. 
Edelweiss' focus is on value unlocking and debt reduction. The asset management businesses are ripe for unlocking and Edelweiss is exploring a stake sale via IPO for its alternatives business.


Edelweiss: Strong Q2FY25 | Focus on Value Unlocking

External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

<ul><li>Edelweiss Financial Services Ltd. is a financial services firm in India with a market cap of $1.2 billion USD</li><li>The company includes the largest private credit and private real assets fund manager in the country</li><li>Management plans to sell a strategic minority stake in the Edelweiss Alts business unit and IPO the Alts unit to distribute shares directly to shareholders, potentially creating value for investors as seen in a previous div-en-specie transaction with Nuvama</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

Edelweiss Financial Services Ltd. is a financial services firm in India with a market cap of $1.2 billion USDThe company includes the largest private credit and private real assets fund manager in the countryManagement plans to sell a strategic minority stake in the Edelweiss Alts business unit and IPO the Alts unit to distribute shares directly to shareholders, potentially creating value for investors as seen in a previous div-en-specie transaction with NuvamaThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Edelweiss Financial Services Ltd. (EDEL IN) - Tuesday, Sep 17, 2024

<ul>
<li>Edelweiss' credit business is now normalizing with GNPA at 2.5% and NNPA at 1.8%. Credit costs came in negative as asset quality is improving and excess provisioning is being normalized. </li>
<li>Rest of the businesses continue to scale up well. Edelweiss is among the fastest grower in the mutual fund and insurance businesses. Wealth Management business continues to do well.</li>
<li>At current valuation, Edelweiss is available cheap and as per our estimates, an investment in it has potential to more than quadruple by the end of FY25.</li>
</ul>


Edelweiss' credit business is now normalizing with GNPA at 2.5% and NNPA at 1.8%. Credit costs came in negative as asset quality is improving and excess provisioning is being normalized. 
Rest of the businesses continue to scale up well. Edelweiss is among the fastest grower in the mutual fund and insurance businesses. Wealth Management business continues to do well.
At current valuation, Edelweiss is available cheap and as per our estimates, an investment in it has potential to more than quadruple by the end of FY25.


Edelweiss: Credit Business Is Normalizing; Rest of the Businesses Are Scaling Up Well

<ul>
<li>
<a href="https://www.smartkarma.com/entities/edelweiss-financial-services-ltd" target="_blank" data-smartkarma-citation="entities:15015:1" rel="noopener">Edelweiss Financial Services ("Edelweiss")</a> continues to scale up well its asset management and insurance businesses. The credit business has been also turning around led by the co-lending model.</li>
<li>In particular, the asset management business has been growing rapidly. The alternatives asset management AUM grew 17% YoY, of which fee-paying AUM grew 32% YoY.</li>
<li>With all its businesses now running independently, Edelweiss is focusing on unlocking value. It already demerged Nuvama and is now close to unlock value in its Alternative Asset management business.</li>
</ul>



Edelweiss Financial Services ("Edelweiss") continues to scale up well its asset management and insurance businesses. The credit business has been also turning around led by the co-lending model.
In particular, the asset management business has been growing rapidly. The alternatives asset management AUM grew 17% YoY, of which fee-paying AUM grew 32% YoY.
With all its businesses now running independently, Edelweiss is focusing on unlocking value. It already demerged Nuvama and is now close to unlock value in its Alternative Asset management business.


Edelweiss: Scaling Up Well | Value Unlocking Is Catalyzing Re-Rating

India

Edelweiss Financial Services Ltd. provides financial services.  The Company offers financial services including lines of credit, investment banking, institutional and retail broking, financial planning, asset advisory, life insurance, and investment management services.

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Edelweiss Financial Services (EDEL IN)

Edelweiss: Growing Well and Unlocking Value

Edelweiss is scaling up its businesses well. The asset management and insurance businesses are growing at an industry leading pace. Edelweiss'...

Ankit Agrawal, CFA

Edelweiss: Strong Q2FY25 | Focus on Value Unlocking

Edelweiss is consistently scaling up its businesses well. As these businesses are reaching optimum scale and profitability, it has been prudent in...

Ankit Agrawal, CFA

Edelweiss Financial Services Ltd. (EDEL IN) - Tuesday, Sep 17, 2024

Management plans to sell a strategic minority stake in the Edelweiss Alts business unit and IPO the Alts unit to distribute shares directly to...

Value Investors Club

Edelweiss: Credit Business Is Normalizing; Rest of the Businesses Are Scaling Up Well

Edelweiss' credit business is normalizing. Rest of the businesses are also scaling up well. At current valuation, Edelweiss is available cheap and...

Ankit Agrawal, CFA

Edelweiss: Scaling Up Well | Value Unlocking Is Catalyzing Re-Rating

Edelweiss' stock has re-rated significantly (up ~60% over the past month) post its announcement of 3-year roadmap being underway for value...

Ankit Agrawal, CFA

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