Edelweiss Financial Services

I have been using Google Docs to do my writeup for analyzing companies. For the first time I used Scrivener to do my analysis. I enjoyed writing on Scrivener as it allowed me to focus on individual pieces. And not worry about the document layout. Moving around content is a piece of cake. It’s a perfect tool for doing research. Click here to read my analysis on Edelweiss Financial Services.

14 thoughts on “Edelweiss Financial Services

  1. Hey Jana, nice piece.

    Just a quick query, how did you arrive at Valuation of 1.7x book value when roe is 20% against 12% return expectation?

    Thanks Abra

    • Thanks, Abra. I did 20/12 and rounded up and that should give you 1.7x .


  2. As always… wonderful read Jana. Thank u so much for sharing your knowledge selflessly.

    Also am very eager to learn how to value and analyse financial business (Banks, NBFC’s etc) can u suggest some books or any specific articles where i get some information and knowledge about the same.

    I must say i bought your lecture notes (Gentle & Practical introduction to value investing) from amazon couple of months back and read it many times. that book cleared many of my doubts about business valuations & also introduced me to many great books. thank u sooo much.

  3. Thanks for excellent write up. I’m eager to know on how you perform research and identify source of information. To my knowledge, it’s hard to get nitty-gritty details of the companies on the net in a direct manner.

  4. Perhaps one should compare writeoffs with provisions from a year or more back? This depends on the time for which a loan is an NPA before it is written off. In general with fast growth of loan book problems can be masked.

  5. Thanks Jana for that wonderful insight. Shall I buy for a lakh of INR? Regards



    • Thanks, Murali. This is not an investment advice and the report is not for stock recommendation.


  6. You must have invested 20 or more hours in researching this report. Thank you for sharing.
    I follow your posts and find them very useful. I also read many of your recommendations on the app Pocket.
    About 20 years ago, trucks were financed by small financiers and companies like Sundaram Finance at 15% flat(or 30% IRR) to those customers whom the banks will not lend to. Later all these people went out of business when NBFCs and even banks started lending to most of those buyers at ~1-2% higher than the best bank rates.
    Borrowers paying 5-6% above the best rates(Bajaj Finance and Ujjivan Finance lend with an even higher spread of ~12%) puts a big question mark on their credentials. They are not sound either financially or mentally.
    But the fact that these companies are flourishing proves my logic is wrong. And financial stocks with such stretched logic/valuations form about 30-40% of the investible universe in India.
    Have you written any more of such reports on Indian companies.
    Thanks and regards

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