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

Ankit Agrawal, CFA

I possess investment research experience across asset classes and geographies, acquired at Investcorp (New York) and Howe & Rusling (Rochester). At Investcorp, an alternative asset manager, I was part of an investment team managing >$1bn in discretionary client assets. I was also a member of investment recommendation, monitoring, cross-asset strategy and macro outlook committees that met periodically for investment decisions and top-down views. At Howe & Rusling, a long-only asset manager, I helped cover US large-cap equity investments across sectors for growth and income focused portfolios as well as assisted in managing a US small-cap growth focused equity portfolio. I possess an MBA in finance and corporate accounting from University of Rochester in US, a CFA Charter, and an Engineering degree from Indian Institute of Technology Bombay in India.  

My current focus is L/S equity fundamental research across market cap and sectors with an eye on corporate governance and forensic accounting. I am currently based in India and my current coverage universe is biased towards India.

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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-602, Titanium Business Park, Makarba, Ahmedabad - 380051 |
Email: services@yellowstoneequity.com |
Mobile: +91-7575817289

Compliance/Grievance Officer -
Name: Ankit Agrawal |
Email: services@yellowstoneequity.com |
Mobile: +91-7575817289
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Equity L/S Analyst | Forensic Accounting | India

Edelweiss: A Beneficiary of Potentially Increased Adoption of Co-Lending by PSBs

Indian NBFCs: Co-Lending Seems to Be Gaining Traction - Indiabulls/HDFC New Partners in Town

Edelweiss Financial Services – The Whole Package

Edelweiss Financial Services – Better, But Still Bad

Equity Bottom-Up

Edelweiss Financial Services / Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/edelweiss-financial-services-ltd" target="_blank" data-smartkarma-citation="entities:15015:1" rel="noopener">Edelweiss Financial Services (EDEL IN)</a> reported Q3FY21 earnings (PAT) of INR 117cr ex of Insurance business and BMU &amp; Corporate unit and pre minority interest. With recovery in the economy and in the residential real estate market, Edelweiss' credit business is turning around. The bad assets for the most part have been cleaned up and provided for. Wealth management, capital markets, ARC and asset management businesses continue to remain robust and provide strong fee-based income. Fee income has come back to pre-COVID levels at around INR 480cr per quarter. Insurance business is well funded to take losses for the next few years, as it scales up. BMU &amp; Corporate Unit (BMU: Balance Sheet Management Unit) was affected by negative carry from excess liquidity and one-off restructuring charges relating to consolidation at the holding company level into a Core Investment Company (CIC). Capital adequacy for Edelweiss remains robust at 23%+ levels across its credit businesses. Leverage at the group level is low at 3x and post the completion of the PAG deal, the balance sheet should only strengthen further.</p>
<p>Below we discuss key growth and profitability levers for Edelweiss going forward.</p>

Edelweiss Financial Services (EDEL IN) reported Q3FY21 earnings (PAT) of INR 117cr ex of Insurance business and BMU &amp; Corporate unit and pre minority interest. With recovery in the economy and in the residential real estate market, Edelweiss' credit business is turning around. The bad assets for the most part have been cleaned up and provided for. Wealth management, capital markets, ARC and asset management businesses continue to remain robust and provide strong fee-based income. Fee income has come back to pre-COVID levels at around INR 480cr per quarter. Insurance business is well funded to take losses for the next few years, as it scales up. BMU &amp; Corporate Unit (BMU: Balance Sheet Management Unit) was affected by negative carry from excess liquidity and one-off restructuring charges relating to consolidation at the holding company level into a Core Investment Company (CIC). Capital adequacy for Edelweiss remains robust at 23%+ levels across its credit businesses. Leverage at the group level is low at 3x and post the completion of the PAG deal, the balance sheet should only strengthen further.
Below we discuss key growth and profitability levers for Edelweiss going forward.

Edelweiss: Very Well Capitalized and On the Path to Profitability and Growth