Indiabulls Ventures is a growing financial services company with presence in

consumer lending, asset reconstruction and capital market business. The company
through its subsidiary Indiabulls Consumer Finance Ltd. (IBCFL), formerly IVL
Finance Limited, provides personal loan offerings.

On the back of digital transformation in the banking and financial services sector, the
company has found a sweet spot in the lending business backed by a future ready
digital offering for today’s consumer – Indiabulls Dhani. Indiabulls Dhani, a mobile
and web based loan fulfilment application, has been developed to cater to the
aspirational needs of the everyday Indian by offering quick and convenient personal
financing solutions. Ranking amongst the top 3 downloaded mobile applications in
the financial services sector, Indiabulls Dhani had more than 11.5 million downloads
as on September, 2018.

The company has a robust reach across the country, with offices in more than 124
cities. To further expand its network, IBCFL launched Indiabulls Partner, a platform
wherein agents can refer Indiabulls Dhani to potential customers and earn
commissions. The program now has more than 1.09 lakh partners.

IBCFL has loan assets worth ₹ 101.40 Bn. as on 30 th September, 2018 and has
been rated ‘AA’ by CARE.

Management Team
 Strength’s
 Rising Net Cash Flow and Cash from Operating activity
 
 Effectively using its capital to generate profit - RoCE improving in last 2 years
 
 Company reducing Debt
 
 Company with Zero Promoter Pledge
 
 FII / FPI or Institutions increasing their shareholding

Weekness
 Red Flag: High Interest Payments Compared to Earnings
 
 MFs decreased their shareholding last quarter
 
 Inefficient use of shareholder funds - ROE declining in the last 2 years
 
 Degrowth in Revenue and Profit
 
 Decline in Net Profit with falling Profit Margin (QoQ)
 
 Decline in Quarterly Net Profit with falling Profit Margin (YoY)
 
 Declining Revenue every quarter for the past 4 quarters
 
 Declining profits every quarter for the past 2 quarters
 
 Promoter decreasing their shareholding
 
 Major fall in TTM Net Profit
 
 Fall in Quarterly Revenue and Net Profit (YoY)
 
 Recent Results: Declining Operating Profit Margin and Net Profits (YoY)
 
 Weak performer : Stock lost more than 20% in 1 month
 
 Weak Momentum: Price below Short, Medium and Long Term Averages
Opportunities
 Rising Delivery Percentage Compared to Previous Day and Month,
Strong Volumes
 
 Positive Breakout First Resistance ( LTP > R1)
 
 Highest Recovery from 52 Week Low
 
 Stock with Low PE (PE < = 10)

Threats
 Profit to Loss Companies
 
 Degrowth in Revenue, Profits and Operating Profit Margin in recent results
(QoQ)
 
 Company with negative growth and promoters decreasing shareholding
QoQ
 
 Increase in Provisions in Recent Results
 
 Insiders sold stocks

Competitive Analysis

Dhani Services has a considerably high market capital but despite of that all the
other ratios and performance ratings are significantly lower than its competitors.
ROE is 0.11 which is 90 times lower than its competitor Geojit Fin who has a market
cap of almost 10% of Dhani services. Its profit is also more than that of Dhani. Even
though the sales of dhani services are very high and the highest among its
competitors the profit earned by the company is the lowest. Debt to equity ratio is
1.38 which is fine but it states that the company has more debt than its equity.
Conclusion
IndiaBulls Ventures Listed as Dhani services is a growing company and it has a
huge market capitalisation but that doesn’t hide the fact that the company has
reducing profits year on year and even the revenue received by the company is
reducing YoY. The Company has a lot of debt to repay but with the incoming profits
yearly compared to its competitors will make it very difficult for it to maintain its
reserves and surplus for its growth and expansion. In my purview indiabulls ventures
is not a suitable company to invest in or park your money as it has very low scope of
giving sufficient returns and can even prove to be a bad investment for the investor.