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


-------------
Regulatory Disclosure: 
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.

Research Analyst Contact Details:
Address: A-412, Shilp Aaron, Sindhu Bhavan Road, Ahmedabad, Gujarat - 380059
Email: services@yellowstoneequity.com
Mobile: +91-7575817289

Compliance/Grievance Officer:
Name: Ankit Agrawal
Email: services@yellowstoneequity.com
Mobile: +91-7575817289
-------------

Equity Bottom-Up

Edelweiss Financial Services / Equity Bottom-Up

<ul>
<li>A key re-rating trigger for Edelweiss' stock is nearing as its wealth management (WM) arm gets close to demerge and list over the next couple of months.</li>
<li>Edelweiss' WM business could list at a market cap of around INR 8750cr, suggesting that Edelweiss' 44% stake in it alone could be valued at INR 3850cr.</li>
<li>Edelweiss also reported strong Q3FY23 earnings with 31% YoY growth in ex-insurance PAT. Edelweiss has significant potential to re-rate over the next couple of years as the credit business normalizes.</li>
</ul>


A key re-rating trigger for Edelweiss' stock is nearing as its wealth management (WM) arm gets close to demerge and list over the next couple of months.
Edelweiss' WM business could list at a market cap of around INR 8750cr, suggesting that Edelweiss' 44% stake in it alone could be valued at INR 3850cr.
Edelweiss also reported strong Q3FY23 earnings with 31% YoY growth in ex-insurance PAT. Edelweiss has significant potential to re-rate over the next couple of years as the credit business normalizes.


Edelweiss: Wealth Management Arm Demerger Is Nearing

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Kfin Technologies  / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kfin-technologies" target="_blank" data-smartkarma-citation="entities:36609:1" rel="noopener">KFin Technologies (1804170D IN)</a> is looking to raise around US$180m in its India IPO.</li>
<li>KFin Technology (KFin) is a technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem.</li>
<li>In this note, we will look at its RHP updates, peer comparison, earnings assumptions, and share our thoughts on valuation.</li>
</ul>



KFin Technologies (1804170D IN) is looking to raise around US$180m in its India IPO.
KFin Technology (KFin) is a technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem.
In this note, we will look at its RHP updates, peer comparison, earnings assumptions, and share our thoughts on valuation.


KFin Technologies IPO - Profit Growth Has Outpaced Peer, However Valuation Isn’t Cheap

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kfin-technologies" target="_blank" data-smartkarma-citation="entities:36609:1" rel="noopener">KFin Technologies (1804170D IN)</a> is looking to raise around US$300m in its India IPO.</li>
<li>KFin Technology (KFin) is a technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem.</li>
<li>Under its offering, it primarily serves asset managers and corporate issuers domestically, while providing investor solutions for mutual funds and private retirement schemes in other regions.</li>
</ul>



KFin Technologies (1804170D IN) is looking to raise around US$300m in its India IPO.
KFin Technology (KFin) is a technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem.
Under its offering, it primarily serves asset managers and corporate issuers domestically, while providing investor solutions for mutual funds and private retirement schemes in other regions.


KFin Technologies Pre-IPO - Large Domestic Player Continues to Get Larger

<ul>
<li>Credit business has seen decent recovery with asset quality stabilization and down-sizing of the wholesale loan book. Retail book is growing via co-lending and other asset-light models.</li>
<li>Asset Management business is scaling up well and is poised to benefit significantly from operating leverage, particularly in the Alternatives business as the carry fee kicks in from FY24.</li>
<li>Insurance businesses continue to scale up well. Edelweiss is seeking strategic partners for both the insurance businesses to take advantage of the new IRDA regulations.</li>
</ul>


Credit business has seen decent recovery with asset quality stabilization and down-sizing of the wholesale loan book. Retail book is growing via co-lending and other asset-light models.
Asset Management business is scaling up well and is poised to benefit significantly from operating leverage, particularly in the Alternatives business as the carry fee kicks in from FY24.
Insurance businesses continue to scale up well. Edelweiss is seeking strategic partners for both the insurance businesses to take advantage of the new IRDA regulations.


<ul>
<li>After a tough 3Y since the IL&amp;FS crisis, Edelweiss' credit business is now getting back on track. Asset quality has normalized to &lt;2% Net NPA.</li>
<li>Edelweiss' other businesses continue to post robust growth. ARC, Asset Management and Insurance businesses are scaling up well. Wealth Management business is on track for listing by Feb 2023.</li>
<li>At a market cap of INR 5200cr, Edelweiss is trading cheap even if one ascribes zero valuation to its Credit business.</li>
</ul>


After a tough 3Y since the IL&amp;FS crisis, Edelweiss' credit business is now getting back on track. Asset quality has normalized to &lt;2% Net NPA.
Edelweiss' other businesses continue to post robust growth. ARC, Asset Management and Insurance businesses are scaling up well. Wealth Management business is on track for listing by Feb 2023.
At a market cap of INR 5200cr, Edelweiss is trading cheap even if one ascribes zero valuation to its Credit business.


India

ICRA Limited provides investment information and credit rating services in India.

Pilani Investment and Industries Corporation Ltd. is an investment company. The Company derives dividend income from the companies in which it holds interests.  Pilani has investments in textile manufacturing, newspaper publishing, and real estate.

JSW Holdings Limited is an investment holding company.  The Company invests in the shares of companies.

Religare Enterprises Limited is a holding company for one of India's diversified financial services groups. The Company offers an integrated suite of financial services through its underlying subsidiaries and operating entities, including loans to SMEs, capital markets, wealth management, life and health insurance, and asset management.

CARE Ratings Limited operates as a credit rating agency. The Company offers credit assessment of companies that helps corporates to raise capital and assists the investors to form an informed investment decision based on the credit risk. CARE Ratings serves corporates, financial sectors, state government entities, and local bodies.

Kalyani Investment Company Ltd. is an investment company. The Company invests in a diversified portfolio of the shares of both listed and unlisted companies.

JM Financial Limited is a holding company which has subsidiaries in all major financial services. The Company's services include investment banking, institutional and retail brokerage, asset management (MF & alternative assets), commodities and asset reconstruction.

PTC India Financial Services Ltd. is an investment special purpose vehicle of PTC India Limited established with the mandate to provide financial services in the energy value chain. The Company provides non-fund based financial services adding value to green field and brown field projects at various stages of growth and development.

Geojit BNP Paribas Financial Services Ltd provides a range of financial services.  The Company provides brokerage, portfolio management, insurance, commodities trading, and other products and services.

Indiabulls Ventures Limited is engaged in consumer finance business. The Company, through its subsidiaries, provides consumer loans and loans to businesses through its mobile application software. Indiabulls Ventures also provides securities and derivative brokerage services. Indiabulls Ventures serves clients in India.

Central China Securities Co., Ltd. is a securities company engaged in the brokerage, investment banking, investment management, and trading businesses primarily in China. The Company trades in stocks, funds, bonds, and commodity and financial futures on behalf of its clients; and provides margin financing, securities lending, and wealth management services.

OSK Holdings Berhad is an investment holding company. Through its subsidiaries, the Company provides retail and institutional broking in equities, futures and fixed income, underwriting and placement of securities, corporate finance and advisory, commercial and wholesale banking, asset management, trustee services and issues derivatives and structured products.

Ares Acquisition Corporation operates as a blank check company. The Company aims to acquire one and more businesses and assets, via a merger, capital stock exchange, asset acquisition, stock purchase, and reorganization.

GAMCO Investors, Inc. provides discretionary investment services to a broad spectrum of investors. The Company's principal objective is to seek long term capital appreciation primarily through the equity markets by applying its analytical process to management of client portfolios.

Equity Holdings Limited provides personal trust and financial services to customers in Australia.   Services include will and estate planning, trustee for settlements, financial guardian, investment and property management and fund investments. Other services provided by the company  include income tax services, short term share trading and mortgage loans and investments.

Aizawa Securities Co Ltd is a comprehensive securities firm. The Company provides financial services such as dealing, brokerage, underwriting, and distribution of securities, and investment trust.

JAFCO Co., Ltd. forms venture capital groups to invest primarily in domestic and foreign private companies with high potential for future growth.  The Company also provides management services to the groups, makes loans and offers consultation services to the invested companies.

China Bills Finance Corporation acts as a dealer and broker of commercial paper, certificates of deposit, acceptances, and treasury bills.  The Company also acts as a registrar, underwriter and guarantor of commercial paper, and as a broker of interbank placements with financial institutions.

Guotai Junan International Holdings Ltd. is a securities brokerage house. The Company's services include securities and futures dealing and broking services for various financial markets, corporate finance and ECM services, asset and fund management services and financing services such as margin financing and other types of financing.

Shinyoung Securities Co., Ltd. offers brokerage, securities dealing, and underwriting services in Korea.  The Company also provides mutual funds, certificate of deposits (CDs), corporate finance, bonds, and online trading services to its clients.

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Edelweiss Financial Services (EDEL IN)

Edelweiss: Wealth Management Arm Demerger Is Nearing

Edelweiss' stock has potential to triple over the next couple of years as its credit business normalizes. The separate listing of its wealth...

Ankit Agrawal, CFA

KFin Technologies IPO - Profit Growth Has Outpaced Peer, However Valuation Isn’t Cheap

KFin Technologies (1804170D IN) is looking to raise around US$180m in its India IPO. In this note, we will look at its RHP updates, peer...

Clarence Chu

KFin Technologies Pre-IPO - Large Domestic Player Continues to Get Larger

KFin Technologies (1804170D IN) is looking to raise around US$300m in its India IPO. KFin is a tech-driven financial services platform providing...

Clarence Chu

Edelweiss: At An Inflection Point

Given that the listing of the Wealth Management entity is around the corner and the credit business has also normalized, Edelweiss' stock is ripe...

Ankit Agrawal, CFA

Edelweiss: On Track for Strong FY23

Edelweiss' credit business is normalizing after a 3Y hiatus. Rest of the businesses are also scaling up well. As the WM business is de-merged and...

Ankit Agrawal, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)