Thematic Report On Broking Industry (By Axis Direct)

Increasing allocation to Financial savings- key driver
Bunty Chawla – Deputy Manager |  bunty.chawla@axissecurities.in |  (+91 22 4267 1738)

21 APR 2017 Sector Report
Broking Industry
Executive Summary Sector: BFSI
 Equity as an asset class has outperformed other investments over a period of time due to earnings growth of
Corporates. Earnings of corporates increase on account of favorable demographics of India with young
population, high GDP growth, low inflation rate, Government reforms and investments, etc. Key indices have delivered
13% CAGR growth over last 10 years though Lehman Crisis in FY09 and Euro zone crisis impacted the returns
adversely in those respective periods. Market cap of stock exchanges ( BSE&NSE) grew at 12-13% CAGR (FY06-16)
along with uptick in average daily turnover as participants have increased in the equity markets. This was driven by
outperformance of equity over other asset classes such as Gold, Real estate investment, etc. The market
outperformance should continue to sustain the interests of the investors which bodes well for the broking industry.
 We observe a significant shift of investments from Physical assets to Financial assets. With diversion of household
savings into financial assets, broking industry would be beneficiary as investors will require financial advisors to invest
through different modes as per their requirements.
 For investing into financial assets, Investors prefer adopting mutual fund route as promoted by the regulator. MF
Industry’s AUM has more than doubled in the last 4 years from Rs.1.9trillion as on 31st March, 2014 to Rs.4.7 trillion
as on 31st Dec, 2016.
 Regulators have taken various initiatives to improve accountability and transparency in order to safe guard the interests
of the small investors, which is likely to increase confidence and sustainability of the market participation.
 Major beneficiary of all the above is the broking industry which has gone into consolidation phase as the pace of shut
down of small brokers have declined. Also, Top 25 members in NSE have gained market share which is visible from
FY14 onwards.
 We recommend thematic investments in the broking industry and the players includes Motilal Oswal, Edelweiss, India
Infoline, etc.
2
Broking Industry
Performance of Key Index last 10 years Sector: BFSI
Sensex 13% CAGR (FY06-17)

Europe Crisis
35000
30000
Lehman Crisis
25000
20000
15000
10000
5000
201201
201501
200607
200610
200701
200707
200710
200801
200807
200810
200901
200907
200910
201001
201007
201010
201101
201107
201110
201207
201210
201301
201307
201310
201401
201404
201407
201410
201507
201510
201601
201607
201610
201701
200604
200804
200904
201004
201104
201204
201304
201504
201604
201704
200704
Source: NSE, BSE
 Key index have given 13% CAGR growth over last 10 years though Lehman Crisis in FY09, Euro zone crisis, impacted
the returns in respective periods.
 Lehman crisis created the financial meltdown all over the global markets and Indian markets were no exception.
However, with strong domestic consumption and steps taken by US govt, markets recovered strongly in FY10.
 In FY16, Indian equity markets remained subdued due to turmoil in the global equity markets. Among the factors that
weighed down on the markets were the economic slowdown in China, Brexit crisis in the Eurozone, slump in global
commodity prices, weakening global trade and prospects of an interest rate hike by the Federal Reserve.
3
Broking Industry
Mcap of key exchanges grew at 12-13% CAGR Sector: BFSI
BSE Mcap grew at 12% CAGR (FY06-16)

BSE Mcap Rs. Bn
140,000
121,545
120,000
101,493
94,753
100,000
74,153
80,000 68,391 63,879
61,656 62,149
60,000 51,380
30,222 35,450 30,861
40,000
20,000
0
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
NSE Mcap grew at 13% CAGR (FY06-16)

NSE Mcap Rs. Bn 119,784
120,000
99,301
100,000 93,105
80,000 72,777
67,026
60,092 60,965 62,390
60,000 48,581
40,000 33,674
28,132 28,962
20,000
0
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Source: BSE, NSE
4
Broking Industry
Strong growth in Turnover Sector: BFSI
Turnover (Cash & F&O) picks up
983,792
Total Turnover Rs.Bn
801,676
1,200,000.0
673,759
1,000,000.0
507,132
418,333
346,581
329,005
800,000.0
226,747
181,035
146,451
600,000.0
101,229
70,296
40,531
35,276
12,742
400,000.0
8,990
200,000.0
0.0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Source: SEBI, BSE, NSE
Average Daily turnover improves

Average Daily tunoevr Rs. Cr
25000 22780 22577  Strong turnover growth

20443 21393
20155
20000 18354 in equity market (cash
15856
14108
15000
11753
13204 13412 & F&O) bodes well
10000 with the broking
5000 industry along with
0 increase in average
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M daily turnover.
FY17
5
Broking Industry
Financial assets gaining acceptance Sector: BFSI
Financial savings vs Physical Savings  As per RBI, in 2014, the share of household savings
in shares and debentures hardly stood at 3%.
Savings % of Total households savings
Financial Savings Physical Savings  The rise in household savings, as well as the shift
FY01 46.4% 53.6% from physical assets to financial assets and the
FY02 45.4% 54.6%
subsequent substitution from bank deposits to
FY03 44.9% 55.1%
FY04 47.6% 52.4% equity, mutual funds, insurance, etc augurs well for
FY05 42.9% 57.1% broking industry.
FY06 50.4% 49.6%
FY07 48.7% 51.3%  For most of the period it is observed that financial
FY08 51.9% 48.1% assets tend to move in opposite direction to physical
FY09 42.9% 57.1% assets like Gold.
FY10 47.5% 52.5%
FY11 43.0% 57.0%
FY12 30.8% 69.2%
FY13 32.4% 67.6%
Sensex outperforms Gold for most part
FY14 36.6% 63.4%
Gold (Returns %) Sensex (Returns %)
FY15 40.3% 59.7%
Source: RBI 120%
83% 81%
66% 74%
80%
 With diversion of household savings into financial 34% 34% 29% 34%
40% 16% 16% 16% 16% 20% 22%22% 14% 19% 15%
assets, broking industry will be beneficiary as 10%3% 6%
3%2%
0% 3% 2% 2% 7% 7%12% 8% 11% 8% 10%
0%
investors would require financial advisors to invest -2%
-4% -4%-12% -2% -6%
-5%
-11%
through different modes as per their requirements. -40% -14% -14%
-28%
-38%
-80%
 Investment through Pension funds, Insurance, Mutual
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
Avg. Return
funds, SIPs, Capital market, Bonds, etc. will require
broking services.
6
Broking Industry
Equity MF asset size at the highest levels Sector: BFSI
Equity MF asset size

Rs. Trillion
 AUM of Indian Equity 5 4.7
MF Industry has grown 3.9
from Rs.1.2 trillion as 4 3.5
on 31st March 2007
to Rs.4.7 trillion as on 3
2 2 1.8 1.9
31st Dec, 2016, a four- 2 1.7 1.7
fold increase in a span 1 1.2 1.1
of 10 years. 1 0.4
0.2 0.1 0.3
 The MF Industry’s AUM 0
has more than doubled
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Dec-16
in last 4 years from
Rs.1.9trillion as on
31st March, 2014 to
Net sales of Equity MF turns positive
Rs.4.7 trillion as on
800 710 740
31st Dec, 2016. Rs. Billion
 Also, Net inflows of 600 469

416
Equity MF turned 352
400 282
positive in last 3 years
as compared to 200 72 71 40
negative or slightly 5 21 1
positive from FY09 to 0
FY14. This states that -5
retail investors in MF -200 -131 -93
-146
investments have
become active.
Dec-16
FY02
FY07
FY12
FY03
FY04
FY05
FY06
FY08
FY09
FY10
FY11
FY13
FY14
FY15
FY16
Source: AMFI
7
Broking Industry
SIP accounts at all time high Sector: BFSI
Systematic Investment Plan (SIP)

 Systematic Investment Plan (SIP) is an investment plan (methodology) offered by Mutual Funds wherein one could invest
a fixed amount in a mutual fund Scheme periodically at fixed intervals – say once a month instead of making a lump-
sum investment.
 The SIP installment amount could be as small as Rs.500 per month. SIP is similar to a recurring deposit where you
deposit a fixed amount every month at a specific date.
 SIP is a very convenient method of investing in mutual funds through standing instructions to debit your bank account
every month, without the hassle of having to write out a cheque each time.
 The MF Industry’s AUM (Debt plus Equity) had crossed the milestone of Rs.10 Trillion (Rs.10 Lakh Crore) for the first
time in May 2014 and thereafter, in a short span of two years and eight months, the AUM size has crossed Rs.17.37
lakh crore.
 Awareness creation and growing emphasis by AMCs on advising individuals to invest through SIP route has yielded
results. The SIP count (number of accounts) increased from 6.2 million in March 2014 to 7.3 million over next 12-
month period.
 The equity culture in Indian households needs a push, which includes creating awareness about mutual funds, and
Systematic Investment Plans (SIPs) which can be safer options for retail investors, and to wean away households’ over-
dependence on investment avenues like gold and real estate.
 Mutual Fund SIPs accounts stood at 1.28 cr at the end of Jan 2017. And the total amount collected through SIP during
the month of January 2017 was Rs.4,095 cr.
Source: NHB, RBI, Axis Securities
8
Broking Industry
SEBI took protection measures to boost individual confidence Sector: BFSI
SEBI Protection Measures

Securities Exchange Board of India (SEBI) has taken various steps to boost the confidence of the retail investors in the
capital market to support the Government’s target to divert house hold savings from other asset classes viz, Gold, Real
estate towards capital market. Thus, various measures taken by SEBI are as follows –
 Activated Circuit filters: Circuit filters are price bands imposed by the SEBI to restrict the movement of stock prices (up
or down), of listed securities in order to curb manipulation in share prices.
As per SEBI guidelines, stock exchanges introduced circuit filters to prevent a steep fall/rise in stock prices and to safe
guard interest of investors from excessive volatility in prices. For example, if you have a share price of Rs 100, and
there is a circuit breaker of 5%, it will stop trading if the share price goes above Rs 105 or below Rs.95.
Circuit limits curb the excessive volatility of markets/ stocks. Some very bad/good news will create panic/euphoria in
the market and the urge to sell/buy causing the stock price to shoot in either direction.
 Managing Data Analytics: SEBI has a team of IT experts to develop data mining and intelligence tools, and to check
cyber attacks. These experts develop data analytics and business intelligence tools, manage internal IT security and
audit systems to guard against data loss and theft.
SEBI records transaction and master data from various exchanges for trade surveillance. SEBI has already started
using analytical models to identify known market manipulation patterns, such as circular trading, pump and
dump, insider trading, and front running. SEBI has a sophisticated surveillance system, which generates at least 100
alerts of suspicious trading activities every day. The surveillance systems also track media reports for information being
shared among the investors that appear suspicious and in violation to the SEBI regulations and model codes of conduct
for various entities, including listed companies and market intermediaries.
9
Broking Industry
….Continues Sector: BFSI
SEBI Protection Measures

 Investor awareness & Education: One of the biggest reasons for the lack of small investor’s interest is low levels of
financial education. Thus, SEBI has planned to increase awareness and investor education through different ways such
as mass media campaign, Financial literacy programmes, Conducting awareness in different states or places etc.
Markets regulator, SEBI, has spent Rs 7 cr on investor awareness programme in the 9MFY16. SEBI has conducted
nearly 6,300 programmes during 9MFY16. It had initiated 8,443 investor education activities in the last financial
year. To keep a check on unauthorized trades through investor accounts, trade alerts on SMS are sent by CDSL &
NSDL on the same day of the trade so that investor gets updated with the trades done during the day
The regulator conducts various investor education and financial programmes in the country, covering all states and
Union Territories. It intends to reach out to maximum people of target audience covering investors/ potential investors
of the country.
 Our View: In the last few years, Indian Equity Markets witnessed extreme volatility which kept the retail investors at bay
and thus has witnessed lower participation from the small investors. However, initiatives are being taken by the
regulator, Stock Exchanges and intermediaries to improve accountability and transparency in order to safeguard the
interests of the small investors, which is likely to increase confidence and help the intermediaries to conquer the lost
battle. The brokerage industry is cyclic in nature and its fortunes are directly dependent on the performance of the
broader markets.
10
Broking Industry
Higher pace of new account additions bode well for broking industry Sector: BFSI
Demat accounts
30.0
Existing Accounts (in Mn) New Accounts (in Mn) 1.7
25.0 2.0  Rising number of
0.9 1.5
0.9 1.0 investors have started
20.0 1.8
2.0 opening de-mat
1.0
15.0 accounts.
23.3 25.4
10.0 19.0 20.0 21.1 21.8  As on Dec 2016 there
15.2 17.2 were a total of 1.7mn
14.2
5.0 de-mat accounts opened
0.0 during FY17.
Moreover, the residents
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M FY17
of tier II and the tier III
cities are also turning to
IPO market shows recovery the stock markets. The
data shows an increase
IPO amount Rs. Bn IPO count no.
500 85 100 in de-mat account
79 77 holders in such cities and
73 70
400 80 the rural areas which is
57 seen as a very
300 60
42
37 37
42 encouraging trend.
200 426 412 40
23  Also, the momentum in
285 17 472
100 245 20 IPO market is building
109 105 145 with bumper listing of
65 89
0 20 30 0 Avenue Supermarket
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 9M (Dmart).
FY17
Source: SEBI, NSDL, CDSL
11
Broking Industry
Brokers face the heat Sector: BFSI
No. of Brokers decline

12000 83,808 96000
9,443 9,457 9,628 9,772 77,141 70,242 9,411
9,335 84000
10000
10,203 10,268 72000
8000
75,378 10,128 6,147 60000
44,074
6000 62,471 48000
51,885 34,942
31,605
27,541 42,351 36000
4000 23,479
24000
2000 3,199
3,183 12000
0 0
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Dec-16
No. OF Brokers Sub - Brokers
 In last 2-3 years, discount brokerage houses have made their presence felt in the industry. Few discount brokerage
houses have also decided to start offering margin funding services to their clients to deepen their client relationships.
 With increase in client base of discount brokerage houses and other players entering the online broking
segment, online volume for the brokerage houses (as a % of overall retail volume) rose to 30% in FY16 from 27% in
FY15.
 This has resulted in shutdown of various small brokers and sub brokers with fixed cost business model which were not
able to survive the transformational nature of the business.
 Many of the brokers shut down in the period FY12-FY16; FY17 seems to be the consolidation phase for broking
industry.
Source: SEBI Bulletin
12
Broking Industry
Top brokers gaining market share Sector: BFSI
Top brokers are gaining market share with the help of various initiatives taking place such as upgrading
technology, increasing product portfolio, Supportive Research services, etc.
 Research Services: Brokerage firms provides research services including equity research, economic research, sector
research and other research support services to their clients for sharing the information about the stocks. They advise
clients to make decision of their hard earned money as per their requirements or risk profile. Firms use analytical tools
for clients across portfolio planning, asset allocation and new idea generation. Online tools for advisors help develop
fund portfolios, automate multi-client trade allocation, rebalance portfolios and make performance reports, as well as
practice management skills for their assistance.
 High Technology Usage: We are in a digital age where technology has been disrupting everything around our lives.
Thus top brokerage firms always been on the forefront for bringing in technological advancements for the betterment of
investors. Firms believe that technology has the power to transform the way to conduct financial transactions and
enhance the experience of retail investors through our robust digital platforms. Technology has enabled newer trading
strategies like algorithmic trading and high-frequency trading. These solution platforms allow high trading volumes with
minimal human intervention on daily basis.
 Value added products: There are multiple trade delivery options across offline, online, desktop and mobile platforms.
Brokers have moved towards web/mobile platforms which offer online direct trading access, live news, advanced
strategies and charting, and ultra-fast execution. Some also allow data streaming from third parties on Mobile apps
and can use it for trading. Direct market access (DMA) is another area made possible with technology, by linking
institutional clients with exchanges directly, through the broker. Mobile apps and websites give real-time
Research, Analyst views, fund transfer, secure trading and monitoring to update the clients on real time basis.
Also, distribution of mutual fund products, life and general insurance policies and PMS services are being provided by
the brokerages.
13
Broking Industry
…Continued Sector: BFSI
 Risk management: Risk management has become important post Freak trade by Emkay global which resulted in fall of
Nifty by 900 points in matter of 15 minutes. Different tools are used to control portfolio concentration limits and report
risk as per different categories. Also, tools are used to manage interest rate risk across currencies and warn clients on
margin limits. Higher volumes have intensified the need for processing and storing huge amounts of data daily. Firms
are also critical to provide safety in case of any eventuality.
 Ethical practices and Regulations: The rules and regulations applicable to stock brokerages, besides being
statutory, play an important role in curbing aggressive risk taking and in enforcing discipline among clients. Various
factors like quality of audit, quality of disclosures, transparency of accounting policies, accounting policy followed for
derivative instruments and proprietary trading are utilized, for determining the adequacy of a brokerage’s accounting
quality standards.
 Market shares of some of the largest brokerages are rising consistently as new technology along with stricter
compliance and regulatory requirements have pushed a large number of smaller entities out of business.
 As per SEBI data, at the end of FY16 top 25 brokerages of the country accounted for a little more than 51% of the
total cash market turnover on BSE and NSE.
 SEBI data further shows that the top 100 brokerages of India command almost 80% market share, which clearly
indicates that the smaller entities are losing their business and are moving out—a trend corroborated by the fall in the
number of registered brokers.
 Small broking houses are surrendering their licenses and becoming franchisees of large brokerage houses. The reasons
for the same are huge investment needed in technology, offering innovative products, compliance cost, requirement
from customers for good products, advisory, etc.
14
Broking Industry
Top 25 members of NSE gaining market share Sector: BFSI
Top 25 members gaining market share in bull phase

Top 25 Next 75 Rest
120%
100%
26% 25% 23% 23% 21% 21% 18%
32% 28% 27% 27%
80% 41% 39% 35%
51% 47%
32% 31%
60% 30% 32% 31% 31% 33%
28% 31% 30%
30% 30%
30% 31%
40% 30%
26%
44% 45% 44% 46% 47% 46% 48% 51%
20% 38% 42% 43%
29% 30% 35%
23% 24%
0%
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Source: NSE
 It is observed that in the bull phase of the capital market (FY02-08), top 25 members have gained market share from
24% to 45%.
 Post 2008, broking industry has not performed well due to external as well as internal factors as observed in earlier
slides such as flat IPO markets, negative growth in mutual fund sales, decline in average daily turnover, fall in Mcap to
GDP ratio, etc. This resulted in shutting shops of many broking firms
 Now, Bull market theory seems to be working with improvement in IPO markets, increasing turnover. Thus, the brokers
who have passed the test of down turn are gaining market share.
 Top 25 members of NSE are gaining market share which is visible from FY14 onwards (gain from 46% in FY14 to
51% in FY16). We , hence remain buoyant on broking industry.
15
Broking Industry
Peer Comparison Sector: BFSI
FY13 FY14 FY15 FY16 CAGR View
MOSL 465 464 769 1,055 31%
Revenue
Edel 2,177 2,534 3,880 5,254 34%
Rs. Cr
 Led by the diversification of the business verticals,
IIFL 2,658 2,822 3,551 3,984 14%
brokerage firms reported strong growth in revenue
MOSL 109 40 144 169 16%
over the period of last 4 years.
PAT
Edel 178 220 329 414 32%
Rs. Cr
IIFL 272 278 447 511 23%
MOSL 36.9 30.3 33.3 40.1 -
PBIDTM
Edel 65.2 63 62 62.3 -
%  Margins have remained volatile for the firms with
IIFL 55.7 58.4 62.5 65 - IIFL reporting consistent improvement.
MOSL 20.7 16 18.5 15.1 -  Edelweiss is reporting lower single digit margin as
PATM Insurance segment is making losses.

Edel 7.8 8 7.9 6.4 -
%
IIFL 10.5 10.3 13.4 13.9 -
16
Broking Industry
Peer Comparison Sector: BFSI
FY13 FY14 FY15 FY16 View
MOSL 8.3 6.3 11.6 12
RoE
Edel 6.2 7.1 9.9 9.6
%
 Return ratio specifically ROE has improved for the
IIFL 14.8 14.1 20.1 19.3
brokerage firms over FY13-16 with adequate
MOSL 12.5 9.8 13.8 13
leverage and operating efficiencies.
RoCE
Edel 9.9 10.2 10.9 10.8
%
IIFL 14.4 13 14.5 14
MOSL 0.9 1.1 3.1 2.7  Re-rating of the broking firms has happened over
P/B the period due to improvements in return ratio led

Edel 0.9 0.8 1.6 1.3
(X) by diversification and improvement in market
IIFL 0.9 1.1 2.2 2.2 activity.
17
Broking Industry
Parameter wise ratings Sector: BFSI
Motilal Oswal India Infoline Edelweiss

Financial Services Holdings Ltd Financial Services
Year of Existence Since 1987 Since 1995 Since 1995
Revenue Growth
Margin (PBIDTM%)
Return ratio (RoE%)
Valuation (X)
Management Pedigree
Diversified Verticals
Strongly Favorable Less Favorable Least Favorable Favorable
Source: Company, Axis Securities
18
Motilal Oswal Financial Services Ltd

Motilal Oswal Financial Services (MOFSL) Sector: BFSI
Motilal Oswal Financial Services Ltd (MOFSL) is the holding company of Motilal Oswal Group - a well diversified
Stock Data financial services group focused on wealth creation through knowledge. The group was founded by Mr.Motilal
Oswal and Mr.Raamdeo Agrawal over 30 years back (in 1987) as a small sub-broking unit and today are a
CMP (as of 20 Apr 2017) Rs.793.6
multi-faceted financial services company with a presence in over 600+ cities through 2000+ business locations
No. of shares 14.45 cr managed by a team of more than 5274 employees.
Investment Rationale
Market cap (Rs) 11,460 cr
 Capital markets volume to boost topline growth: MOFSL's broking business (100% subsidiary- Motilal Oswal Securities
52 week high/low (Rs) 820/274 (MOS) is likely to remain a key revenue contributor for MOFSL. The equity broking business has witnessed a strong
Avg. daily vol. (6 mths) 120,367 revival in FY17. Its broking revenue comprises of close to ~34% of the total revenue and has grown by 27% YoY
during 9MFY17 due to steady brokerage yield and improved stock market volumes.
Bloomberg code MOFS IN
 Aspire Home finance (HFC) – next leg of growth: Profitability mix has changed with rising proportion of Housing
Reuters code MOFS.BO
finance in last 2 years from 2% (FY15) to 19% in 9M FY17. Cumulative capital infusion from MOFSL is Rs.500 cr, as
of Dec 2016 backed by strong liquidity in Group’s B/S for Aspire’s funding to grow. This should continue to grow at
Price Performance healthy pace driven by government’s focus on housing for all by 2022.
400
 Ramp up of Asset management business through QGLP doing well: Company methodically building its positioning as
300
‚equity specialists‛ with QGLP philosophy, which has consistently delivered on performance. Incremental Rs 7.8cr
200
spent in advertising/marketing this YTD. This should boost brand-recall over long term. Q3FY17 saw higher net inflows
100 (Rs 1500 cr vs Rs 1100 cr each in Q2FY17 & Q3FY16), as company deepened distributor relationships.
0
 Return ratios are robust: Company reported annualized ROE of 23% in YTD FY17 as against 12% in FY16 along with
Apr-16 Jul-16 Oct-16 Jan-17 Apr-17
PAT margin of 20% in Q3 FY17 vs 17% YoY. We remain positive on MOFSL .
Motil.Oswal.Fin.
Financial Summary
Source: Axis Securities Ltd, Capitaline.
Y/E PAT EPS EPS chg Book P / BV* RoE RoA
PE(X)*
Mar (Rs. Cr) (Rs) (%) value (Rs) (X) (%) (%)
FY14 40 2.5 (62) 84.7 317 9 6.1 6.0
FY15 143 9.7 245 92.4 82 9 11.4 8.5
FY16 169 11.4 14 101.0 70 8 12.3 5.4
* On CMP Source: Axis Securities Ltd, Capitaline.
19
21 APR 2017 Company Report

Strong Brand Building Sector: BFSI
Large Network and client base
 MOSL has arched the strategy

620+ Institutions named as ‘BUY RIGHT: SIT
TIGHT’ with Q-G-L-P approach.
This approach distilled from 25
years of wealth creation expertise
Corporates
100+ of the company.
 This focused approach is being
advertised by the company to
attract the investor base and
2,200+ AMC Distributors seems to be working.
QGLP methodology where
 ‘Q’uality i.e. quality of the
2,000+ HNI Wealth Families business and management,
 ‘G’rowth i.e. growth in earnings
and sustained RoE,
Retail Broking and
8,40,000+ Distribution Clients
 ‘L’ongevity i.e. longevity of the
competitive advantage or
economic moat of the business
‘P’rice i.e. our approach of
Affordable Housing 
36,000+ Loan Families
buying a good business for a fair
price rather than buying a fair
business for a good price
Source: Company
20

Financials Sector: BFSI
Profit & Loss (Rs Cr) Balance Sheet (Rs Cr)

YE March FY13 FY14 FY15 FY16 YE March FY13 FY14 FY15 FY16
Shareholder's Funds
REVENUE Share Capital 15 14 14 14
Revenue From Operations(Net) 465 464 769 1055 Reserves and Surplus 1203 1157 1281 1422
Total Shareholder's Fund 1218 1170 1295 1437
Other Income 8.3 4.2 3.8 24.7
Minority Interest 3 5 6 16
Total Revenue 473 468 773 1080 Long-Term Borrowings 0 0 301 1700
Employee Benefits Expenses 108 127 190 251 Deferred Tax Liabilities (Net) 18 12 12 6
Other Long Term Liabilities 0 2 3 3
Finance Costs 4.8 2.9 30.9 173.8 Long-Term Provisions 5 4 8 17
Total Non Current Liabilities 23 18 323 1726
Depreciation and Amortization
26 24 31 35 Current Liabilities
Expenses
Short-Term Borrowings 0 0 485 675
Other Expenses 191 199 325 395 Trade Payables 459 565 621 649
Other Current Liabilities 26 34 135 515
Total Expenses 334 356 608 1029
Short-Term Provisions 44 51 79 74
Profit before Exceptional and Total Current Liabilities 529 650 1320 1912
144 115 196 225
Extraordinary Items and Tax Total Equity and Liabilities 1773 1843 2945 5091
ASSETS
Exceptional Items 18.1 -55.6 0.0 0.0
Non-Current Assets
Profit before Tax 162 59 196 225 Fixed Assets 311 307 300 292
Non-Current Investments 123 223 794 1056
Tax Expenses 51.8 17.9 52.3 61.2
Long-Term Loans and Advances 16 28 397 2078
PAT before Share in Associate Other Non-Current Assets 0 2 1 103
110 42 143 163
Company and Minority interests Total Non Current Assets 449 560 1492 3529
Current Assets
Share of Profit/(Loss) in Associate Current Investments 26 70 20 176
0.0 0.0 2.2 8.3
Company Inventories 146 61 0 0
Trade Receivables 436 481 590 710
Minority Interest -0.9 -2.1 -1.9 -2.6
Cash and Cash Equivalents 214 168 272 287
Profit/(Loss) for the period 109 40 144 169 Short-Term Loans and Advances 500 500 564 383
Diluted EPS 7.1 2.5 9.7 11.4 Other Current Assets 2 3 7 7
Total Current Assets 1324 1283 1453 1562
Book Value 83.8 84.7 92.4 101.0 Total Assets 1773 1843 2945 5091
21

Quarterly Results (Rs Cr) Ratio Analysis (%)

Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17
YE March FY13 FY14 FY15 FY16
Operating Income 252 258 308 375 375
Other Operating Income 33 46 43 60 49
Debt-Equity Ratio 0.0 0.0 0.3 1.2
Other Income 8 9 42 66 30
Total Income 293 312 393 501 454
Operating Expenditure PBIDTM (%) 36.9 30.3 33.3 40.1
Interest 49 65 83 113 131
Employee Expenses 64 71 69 94 68 PBDTM (%) 35.9 29.7 29.3 24.0
Other Expenses 102 103 131 140 126
TOTAL OPERATING APATM (%) 20.7 16.0 18.5 15.1
215 240 283 347 324
EXPENDITURE
Operating Profit Before Prov. & ROCE (%) 12.5 9.8 13.8 13.0
78 73 110 154 130
Cont.
Depreciation 10 9 7 8 8 RONW (%) 8.3 6.3 11.6 12.0
TOTAL EXPENDITURE 224 249 290 355 333
PBT 69 63 103 146 121
Tax 20 18 24 40 32
Reported Profit After Tax 49 45 80 106 89
Minority Interest After NP 1 1 2 6 1
Profit/Loss of Associate Company 2 3 2 2 1
Net Profit after Minority Int. & P/L
50 47 79 102 89
Asso.Co.
Extra-ordinary Items 0 0 9 43 0
Adjusted Profit After Extra-ord item 50 47 71 59 89
Basic:
EPS (Adj) (Unit Curr.) 4 3 6 7 6
PBIDTM(%) 51 54 63 71 69
PBDTM(%) 31 28 36 41 35
PATM(%) 20 18 26 27 24
22
Edelweiss Financial Services Ltd

Edelweiss Financial Services (EFSL) Sector: BFSI
Edelweiss Financial Services Ltd (EFSL) is one of India's leading diversified financial services company providing
Stock Data a broad range of financial products and services to a substantial and diversified client base that includes
corporates, institutions and individuals. EFSL's products and services span multiple asset classes and consumer
CMP (as of 20 Apr 2017) Rs.175.5
segments across domestic and global geographies.
No. of shares 83.25 cr Investment Rationale
Market cap (Rs) 14,600 cr  Wealth Management to drive the next leg of growth: EFSL is the 3rd largest wealth management company in India in
terms of AUM size. EFSL ‘s wealth management business has grown at a scorching pace of 82% CAGR in its Asset
52 week high/low (Rs) 185/56.6
under Advice (AUA) over the period FY14-16. Presently, EFSL is serving 300 Ultra High-Net worth individuals and
Avg. daily vol. (6 mths) 30,81,777 more than 1,100 high net worth families.
Bloomberg code EDEL IN  Credit growth remains underpenetrated in India: Credit penetration in India is extremely low as compared to other
economies. On similar benchmarks, the Non Bank Finance Companies (NBFCs) penetration in India is also lower.
Reuters code EDEL.BO
During FY12-16, the loan book has grown at a CAGR of 43% to Rs. 20,014 crore, driven by wholesale lending. The
loan assets are set to double over the next four years.
Price Performance
 ARC business to provide boost at later stage: Objective of EFSL in acquiring any book is to turnaround the company for
400
unlocking maximum value. On an average it takes around 5-7 years to get money back by the ARC Company. EFSL
300
ARC which got its license in the year of 2009 is relatively a new business with an AUM of Rs.9,200 crores in FY14
200
and has rapidly grown to Rs.31,100 crores as on H1FY17. As these funds (Capital + bonus) start returning, the ARC
100
business will make a serious contribution to EFLS’s profitability.
0
Apr-16 Jul-16 Oct-16 Jan-17 Apr-17  EFSL is well diversified NBFC with credit business, non credit business(wealth & broking), insurance and ARC model.
We remain positive on EFSL.
Edelweiss.Fin. BSE_SENSEX
Financial Summary
PE(X)*
FY14 222 2.7 19.5 37.6 65.0 4.6 8.2 1.4
FY15 329 3.8 50.7 39.9 46.2 4.4 10.8 1.5
FY16 414 4.7 8.9 45.1 37.3 3.9 11.7 1.3
23

Well Diversified across Business Verticals Sector: BFSI
Edelweiss has come a long way since its inception and knowledge, research and innovation has been the key drivers for the
company's growth. It is by conscious choice that the group constantly pursues innovation and also adjacent avenues and
invests in new ideas and businesses. The core thought that underlines each business decision is to provide long-term value
creation by building sustainable businesses while focusing on risk.
Asset Base – Rs.32,000Cr Revenue FY16: Rs.5,316Cr Offices-237 Locations-122 Team: 6,227 Clients: 8,87,000
CREDIT NON CREDIT INSURANCE
Presence across: Strong product franchise  One of the fastest growing

Retail serving diverse client life insurance companies
 Retail Mortgage needs:
 Agri & Rural Finance  Wealth Management
 Loan Against Shares  Asset Management
 SME & Others  Capital Markets
Wholesale  Agri Services & Others
 Structured Collateralized  Balance sheet
Credit Management Unit &
 Wholesale Mortgage Liquidity Management
Distressed Assets
24


Shareholder's Funds
REVENUE Share Capital 72 77 79 81
Reserves and Surplus 2383 2813 3077 3591
Revenue From Operations(Net) 2177 2534 3880 5254 Total Shareholder's Fund 2455 2890 3156 3673
Share Application Money pending
Other Income 7 9 14 14 2 0 4 2
Allotment
Total Revenue 2184 2543 3894 5268 Long-Term Borrowings 1980 3550 8098 10104
EXPENSES:
Long-Term Provisions 72 140 299 576
Employee Benefits Expenses 364 458 709 882 Total Non Current Liabilities 2066 3721 8439 10901
Current Liabilities
Finance Costs 1113 1211 1832 2620 Short-Term Borrowings 8974 8726 13583 13861
Depreciation and Amortization Trade Payables 1023 872 1315 1651
51 52 72 90 Other Current Liabilities 1419 1479 3310 5833
Expenses
Short-Term Provisions 57 136 303 367
Other Expenses 396 483 772 1105 Total Current Liabilities 11472 11214 18511 21712
Total Equity and Liabilities 16229 18190 30481 36985
Total Expenses 3038 3415 5216 7317
Assets
Profit before Tax 259 339 510 571 Fixed Assets 498 534 666 695
Tax Expenses 88 135 202 235 Deferred Tax Assets (net) 36 52 97 180
Long-Term Loans and Advances 2716 4118 6735 7720
PBT before Share in Ass. and Min. Int. 171 205 308 336 Other Non-Current Assets 305 356 1023 1314
Total Non Current Assets 4364 5932 10124 11909
Share of Profit/(Loss) in Associate Co. 0 12 18 48
Current Investments 403 1254 1190 696
Minority Interest 7 3 2 31 Inventories 3152 3791 8709 11512
Profit/(Loss) for the period 179 220 329 414 Cash and Cash Equivalents 3709 1964 2365 1934
Short-Term Loans and Advances 3957 4315 6736 9060
Diluted EPS 2.4 2.7 3.8 4.7 Other Current Assets 486 514 923 1356
Total Current Assets 11865 12258 20358 25076
Book Value 34 38 40 45 Total Assets 16229 18190 30481 36985
25


Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 YE March FY13 FY14 FY15 FY16
Other Operating Income 20 36 27 39 28 Debt-Equity Ratio 3.94 4.39 6.03 7.51
Other Income 2 7 7 4 7
PBIDTM (%) 65.2 63 61.97 62.29
Total Income 1343 1526 1472 1597 1613
Operating Expenditure PBDTM (%) 14.23 15.39 14.93 12.55
Interest 681 696 699 709 677
APATM (%) 7.84 8.04 7.91 6.37
Employee Expenses 216 241 248 277 277
Other Expenses 292 381 295 356 385 ROCE (%) 9.93 10.22 10.88 10.77
Total Operating Expenditure 1189 1318 1241 1341 1339
RONW (%) 6.15 7.14 9.91 9.58
Operating Profit Before Prov. &
154 207 231 256 273
Cont.
Depreciation 23 27 24 23 25
PBT 132 180 208 233 248
Tax 49 91 83 97 104
Minority Interest After NP -5 -20 -9 -4 -15
Profit/Loss of Associate Company 18 13 6 5 -4
Net Profit after Min. Int. & P/L
106 122 140 144 155
Asso.Co.
PBIDTM(%) 63 61 65 62 60
PBDTM(%) 12 14 16 17 17
PATM(%) 8 8 10 9 10
26
IIFL Holdings Ltd

India Infoline Holdings Ltd (IIFL) Sector: BFSI
IIFL Holdings Ltd, formerly known as India Infoline Limited, offers a gamut of services including financing, wealth
Stock Data and asset management, broking, financial product distribution, investment banking, institutional equities, realty
and property advisory services through its various subsidiaries.
CMP (as of 20 Apr 2017) Rs.464
No. of shares 31.8 cr Investment Rationale

Market cap (Rs) 14,760 cr  Leading Wealth manager in India: Fastest growing wealth management company in India with $12.8bn assets under
advice, distribution and custody through 22 offices across countries. Total assets grew at 28% CAGR (FY13-16) and
52 week high/low (Rs) 473/196
PAT at 77% CAGR (FY13-16). Also, in Q3 FY17, total income grew by 68% and PAT grew by 41% YoY.
Avg. daily vol. (6 mths) 400,400
 Capital markets to support broking segment: IIFL follows a multi-channel delivery model for its retail broking and
Bloomberg code IIFL IN distribution business. It has rapidly enhanced its retail broking business over the past 5-year, increasing the branch
network. Additionally it has efficiently developed the online broking platform through its websites
Reuters code IIFL.BO
www.indiainfoline.com and www.5paisa.com to enhance its reach to the customers and offer service through this cost
effective distribution platform.
Price Performance
250  Diversified NBFC book with well capitalized (CAR at 20%): Diversified NBFC book consisting of Construction, Home,
200 Gold loan, CV, MSME and Capital market finance provides significant growth opportunities for the next few years
150 since PSU banks are ceding market share. In Sep 2016, CDC’s invested US$ 150m in IIFL Finance which raised
100 NBFC’s Tier-I CAR from 12.8% as at Q1FY17 to over 20%. Thus, the company is well capitalized to ride the growth
50 for next 3 years without capital constraints.
0
Apr-16 Jul-16 Oct-16 Jan-17 Apr-17  With well spread verticals of revenue lines to generate better shareholder returns going forward, we remain positive on
IIFL Holdings BSE_SENSEX
IIFL.
Financial Summary
PE(X)*
FY14 280 8.9 4.3 72.6 52.1 6.4 13.1 2.2
FY15 457 13.8 63.5 82.4 33.9 5.6 18.9 2.9
FY16 512 14.4 16.5 92.2 32.2 5.0 17.1 2.5
27
IIFL Holdings Ltd

Journey so far… Sector: BFSI
Promoted by first generation entrepreneurs, Mr. Nirmal Jain and Mr. R. Venkataraman, IIFL Group is backed by number of marquee
institutional investors including, Fairfax Group and General Atlantic. IIFL is focused on fortifying its relationship with clients through
seamless service and differentiated offerings. For this, the Group will leverage on digitization and a cost-effective model to enhance
its operational processes. The Group will proactively attract and retain talented, motivated, and proven professionals and work on
strategic alliances. Furthermore, it will augment services complementing the organisation's core competences and grow in the
financial services space. Strengthened senior
Registered with NHB for management team at
IPO - Listed on NSE and BSE Housing Finance business NBFC and HFC
Launched internet portal Scaled up Institutional Equities by getting Retail bond offering from
www.indiainfoline.com. a team from CLSA, then market leader 2011 to diversify liability profile
CDC Group plc invests in India Infoline Ltd in Institutional Broking
1995
1999
2000
2005
2006
2007
2008
2009
2010
2011
2012
2014
2016
Pioneered lowest brokerage in the industry Entered Wealth Management services Commenced
with www.5paisa.com. Intel and under the IIFL Wealth brand commercial vehicle business
ICICI invest in the company
First generation venture incorporated Diversified into Retail Finance business Commenced Record profit – ` 5,112 mn
as an independent equity research with personal loans and mortgages Gold loan business (US$ 76 mn). Fairfax,
firm - Probity Research CDC, GA invest in parent,
NBFC and wealth entity resp.
28
IIFL Holdings Ltd


Shareholder's Funds
Share Capital 59 59 62 63
REVENUE
Reserves and Surplus 1900 2093 2496 2857
Revenue From Operations(Net) 2658 2822 3551 3984 Total Shareholder's Fund 1959 2152 2558 2920
Other Income 7 15 13 12 Non-Current Liabilities
Long-Term Borrowings 4400 6019 9471 9020
Total Revenue 2665 2837 3564 3996 Deferred Tax Liabilities (Net) 0 0 4 10
EXPENSES: Long-Term Provisions 27 37 61 79
Total Non Current Liabilities 4487 6064 9547 9127
Employee Benefits Expenses 533 494 605 705 Current Liabilities
Short-Term Borrowings 3735 2809 3752 3600
Finance Costs 869 1153 1434 1680
Trade Payables 786 854 754 917
Depreciation and Amortization Other Current Liabilities 2005 2487 2291 4928
84 68 59 66 Short-Term Provisions 99 104 257 209
Expenses
Total Current Liabilities 6625 6255 7053 9653
Other Expenses 779 703 742 703 TOTAL EQUITY AND LIABILITIES 13104 14514 19422 22877
ASSETS
Total Expenses 3134 3571 4274 4833 Non-Current Assets
Fixed Assets 479 463 472 481
Profit before Tax 400 420 724 843 Goodwill on Consolidation 33 33 38 58
Tax Expenses 121 128 248 288
Deferred Tax Assets (net) 73 85 127 141
Profit after Tax before Minority Long-Term Loans and Advances 3414 4079 5339 9321
279 291 476 555 Other Non-Current Assets 14 25 10 7
interests
Total Non Current Assets 4508 5120 6557 10586
Minority Interest -7 -13 -29 -44 Current Assets
Current Investments 600 576 713 1288
Profit/(Loss) for the period 272 278 447 511 Inventories 69 58 255 33
Cash and Cash Equivalents 1399 1412 1829 1629
Short-Term Loans and Advances 6083 6787 9505 8713
Diluted EPS 8.7 8.9 13.7 14.4
Other Current Assets 145 111 64 41
Book Value 66.3 72.6 82.4 92.2 Total Current Assets 8596 9394 12865 12290
TOTAL ASSETS 13104 14514 19422 22877
29


Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 YE March FY13 FY14 FY15 FY16
Other Income 3 3 4 2 3 Debt-Equity Ratio 4.1 4.9 5.3 5.6
Total Income 985 1100 1031 1216 1274

PBIDTM (%) 55.7 58.4 62.5 65.0
Operating Expenditure
Interest 429 451 454 549 528 PBDTM (%) 18.2 17.2 22.0 22.7
Employee Expenses 175 194 179 182 197
APATM (%) 10.5 10.3 13.4 13.9
Selling & Administrative Expenses 100 123 78 95 111
Other Expenses 65 77 72 80 95 ROCE (%) 14.4 13.0 14.5 14.0
TOTAL OPERATING EXPENDITURE 769 845 782 906 932
Operating Profit Before Prov. &
RONW (%) 14.8 14.1 20.1 19.3
216 255 248 311 342
Cont.
Depreciation 17 16 14 13 13
PBT 199 239 235 297 329
Tax 62 89 77 90 107
Minority Interest After NP 11 13 21 24 43
Profit/Loss of Associate Company 0 0 0 0 0
Net Profit after Minority Interest &
127 137 138 183 179
P/L Asso.Co.
PBIDTM(%) 66 64 68 71 69
PBDTM(%) 22 23 24 26 27
PATM(%) 13 12 13 15 14
30
Broking Industry
Disclaimer Sector: BFSI
Disclosures:
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
1. Axis Securities Ltd. (ASL) is a SEBI Registered Research Analyst having registration no. INH000000297. ASL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of
providing Stock broking services, Depository participant services & distribution of various financial products. ASL is a subsidiary company of Axis Bank Ltd. Axis Bank Ltd. is a listed public
company and one of India’s largest private sector bank and has its various subsidiaries engaged in businesses of Asset management, BFSI, Merchant Banking, Trusteeship, Venture Capital, Stock
Broking, the details in respect of which are available on www.axisbank.com.
2. ASL is registered with the Securities & Exchange Board of India (SEBI) for its stock broking & Depository participant business activities and with the Association of Mutual Funds of India (AMFI) for
distribution of financial products and also registered with IRDA as a corporate agent for insurance business activity.
3. ASL has no material adverse disciplinary history as on the date of publication of this report.
4. I/We, Bunty Chawla – Deputy Manager, Research, MBA (Finance), author/s and the name/s subscribed to this report, hereby certify that all of the views expressed in this research report
accurately reflect my/our views about the subject issuer(s) or securities. I/We (Research Analyst) also certify that no part of my/our compensation was, is, or will be directly or indirectly related to
the specific recommendation(s) or view(s) in this report. I/we or my/our relative or ASL does not have any financial interest in the subject company. Also I/we or my/our relative or ASL or its
Associates may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Since associates of
ASL are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in
this report. I/we or my/our relative or ASL or its associate does not have any material conflict of interest. I/we have not served as director / officer, etc. in the subject company in the last 12-month
period.
Any holding in stock – No
5. ASL has not received any compensation from the subject company in the past twelve months. ASL has not been engaged in market making activity for the subject company.
6. In the last 12-month period ending on the last day of the month immediately preceding the date of publication of this research report, ASL or any of its associates may have:
i. Received compensation for investment banking, merchant banking or stock broking services or for any other services from the subject company of this research report and / or;
ii. Managed or co-managed public offering of the securities from the subject company of this research report and / or;
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ASL or any of its associates have not received compensation or other benefits from the subject company of this research report or any other third-party in connection with this report.
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may receive this report at the same time. ASL will not treat recipients as customers by virtue of their receiving this report.
Broking Industry
Disclaimer Sector: BFSI
Disclaimer:
Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to the recipient’s specific circumstances.
The securities and strategies discussed and opinions expressed, if any, in this report may not be suitable for all investors, who must make their own investment decisions, based on their own
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Increasing allocation to Financial savings- key driver

Bunty Chawla – Deputy Manager |  bunty.chawla@axissecurities.in |  (+91 22 4267 1738)

Sensex 13% CAGR (FY06-17)

Source: NSE, BSE

BSE Mcap grew at 12% CAGR (FY06-16)

NSE Mcap grew at 13% CAGR (FY06-16)

Turnover (Cash & F&O) picks up

Average Daily turnover improves

25000 22780 22577  Strong turnover growth

Equity MF asset size

 Also, Net inflows of 600 469

Systematic Investment Plan (SIP)

Source: NHB, RBI, Axis Securities

SEBI Protection Measures

SEBI Protection Measures

Source: SEBI, NSDL, CDSL

No. of Brokers decline

No. OF Brokers Sub - Brokers

Top 25 members gaining market share in bull phase

FY13 FY14 FY15 FY16 CAGR View

MOSL 465 464 769 1,055 31%

MOSL 36.9 30.3 33.3 40.1 -

PATM Insurance segment is making losses.

FY13 FY14 FY15 FY16 View

MOSL 8.3 6.3 11.6 12

P/B the period due to improvements in return ratio led

Motilal Oswal India Infoline Edelweiss

Year of Existence Since 1987 Since 1995 Since 1995

Return ratio (RoE%)

Strongly Favorable Less Favorable Least Favorable Favorable

Source: Company, Axis Securities

Motilal Oswal Financial Services Ltd

FY16 169 11.4 14 101.0 70 8 12.3 5.4

* On CMP Source: Axis Securities Ltd, Capitaline.

Motilal Oswal Financial Services Ltd

Large Network and client base

 MOSL has arched the strategy

Motilal Oswal Financial Services Ltd

Profit & Loss (Rs Cr) Balance Sheet (Rs Cr)

Motilal Oswal Financial Services Ltd

Quarterly Results (Rs Cr) Ratio Analysis (%)

Edelweiss Financial Services Ltd

FY16 414 4.7 8.9 45.1 37.3 3.9 11.7 1.3

* On CMP Source: Axis Securities Ltd, Capitaline.

Edelweiss Financial Services Ltd

CREDIT NON CREDIT INSURANCE

Presence across: Strong product franchise  One of the fastest growing

Source: Company, Axis Securities

Edelweiss Financial Services Ltd

Profit & Loss (Rs Cr) Balance Sheet (Rs Cr)

Edelweiss Financial Services Ltd

Quarterly Results (Rs Cr) Ratio Analysis (%)

IIFL Holdings Ltd

No. of shares 31.8 cr Investment Rationale

FY16 512 14.4 16.5 92.2 32.2 5.0 17.1 2.5

* On CMP Source: Axis Securities Ltd, Capitaline.

IIFL Holdings Ltd

IIFL Holdings Ltd

Profit & Loss (Rs Cr) Balance Sheet (Rs Cr)

Edelweiss Financial Services Ltd

Quarterly Results (Rs Cr) Ratio Analysis (%)

Total Income 985 1100 1031 1216 1274

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