IIFL Capital (IIFLCAPS)
CyclicalFairStock Score: 42/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹335.2 |
| Market Cap | ₹10,552.32 Cr |
| P/E Ratio | 19.38 |
| ROCE | 33.27% |
| ROE | 21.35% |
| Dividend Yield | 0.89% |
| Profit Growth | 19.19% |
| Debt/Equity | 0.59 |
| Sales Growth | 11.19% |
| Promoter Holding | 30.93% |
| 52-Week Range | ₹240.4 — ₹411.3 |
| Sector | Capital Markets |
| Book Value | ₹98.6 |
Strengths
- ROCE of 33.27% and ROE of 21.35% indicate strong capital efficiency.
- Latest quarter net profit of ₹188 Cr on sales of ₹586 Cr shows healthy current profitability.
- Debt/equity of 0.62 is moderate and manageable.
- P/E of 15.63 is not extreme if current earnings are sustained.
Concerns
- Growth is flat to negative: sales up only 0.63%, profit down 5.21%.
- P/B of 4.91 is expensive for a broker, and PEG of 24.81 implies overpayment for growth.
- Piotroski F-Score of 4/9 signals weak financial health and possible quality issues.
- Promoter holding of 30.93% is modest, reducing owner alignment in a people-centric business.
AI Analysis
Looking at IIFL Capital, I see a decent franchise in a tough, commodity-like business. Stockbroking is not a business where you can build an economic castle with a wide moat; clients can shift to the lowest-cost platform in a click. The numbers tell me growth has stalled: sales rose just 0.63% and profit fell 5.21%, so this is not a compounding machine. At ₹319.65, the market is paying 15.63 times earnings and 4.91 times book value, which is rich for a broker with flat earnings. ROE of 21.35% and ROCE of 33.27% are impressive, but high returns in a cyclical industry can attract competition and mean reversion. The balance sheet is not squeaky clean: debt/equity of 0.62 is manageable but not zero, and the Piotroski F-Score of 4 out of 9 raises a yellow flag about financial quality. With a PEG of 24.81, the price already assumes strong future growth, but the latest quarter's profit of ₹188 Cr on sales of ₹586 Cr shows margins are good today. Still, I need a margin of safety. A P/B above 4.9 and a dividend yield of only 1.04% don't offer me that. Promoter holding of 30.93% is another concern; in a people-driven business, I want owners with more skin in the game. This is a cyclical, high-ROE firm, not a steadily growing stalwart. I'd wait for a lower price or clear evidence of durable growth before putting my money to work.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer