IIFL Capital (IIFLCAPS)

FairStock Score: 42/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer