Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Creating Wealth through Alpha and Compounding

Yellowstone Equity

Providing unbiased and independent research on Indian equities to global institutions and individual investors


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Regulatory Disclosure: 
Note that Ankit Agrawal (Proprietor of Yellowstone Equity) is a SEBI registered Research Analyst (Registration No.: INH000007216). Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Research Analyst Contact Details:
Address: A-412, Shilp Aaron, Sindhu Bhavan Road, Ahmedabad, Gujarat - 380059
Email: services@yellowstoneequity.com
Mobile: +91-7575817289

Compliance/Grievance Officer:
Name: Ankit Agrawal
Email: services@yellowstoneequity.com
Mobile: +91-7575817289
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Equity Bottom-Up

Edelweiss Financial Services / Equity Bottom-Up

<ul>
<li>In Q1FY26, Edelweiss reported 20% YoY PAT growth.  Edelweiss is growing from strength to strength with its businesses scaling up well. Its insurance and asset management businesses are growing rapidly. </li>
<li>During Q1FY26, Edelweiss divested 15% stake in its Mutual Fund business, Edelweiss Asset Management, to WestBridge Capital for INR 450cr, valuing the business at INR 3000cr. </li>
<li>YoY, Edelweiss has reduced its consolidated net debt by INR 4845cr (down 31% YoY) and corporate debt by INR 2260cr (down 26% YoY). Corporate debt is now at INR 6350cr.</li>
</ul>


In Q1FY26, Edelweiss reported 20% YoY PAT growth.  Edelweiss is growing from strength to strength with its businesses scaling up well. Its insurance and asset management businesses are growing rapidly. 
During Q1FY26, Edelweiss divested 15% stake in its Mutual Fund business, Edelweiss Asset Management, to WestBridge Capital for INR 450cr, valuing the business at INR 3000cr. 
YoY, Edelweiss has reduced its consolidated net debt by INR 4845cr (down 31% YoY) and corporate debt by INR 2260cr (down 26% YoY). Corporate debt is now at INR 6350cr.


Edelweiss: All Stars Aligned for Next Two Years

India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

<ul>
<li>Edelweiss plans a INR 1,500–2,000 crore IPO of EAAA and a 25–30% stake sale in its mutual fund arm to accelerate deleveraging.</li>
<li>These transactions could meaningfully reduce corporate debt from INR 6,325 crore, strengthen the balance sheet, and unlock shareholder value.</li>
<li>Successful execution improves capital efficiency, supports high-margin business growth, and enhances upside potential, reinforcing the 56% target price appreciation case.</li>
</ul>


Edelweiss plans a INR 1,500–2,000 crore IPO of EAAA and a 25–30% stake sale in its mutual fund arm to accelerate deleveraging.
These transactions could meaningfully reduce corporate debt from INR 6,325 crore, strengthen the balance sheet, and unlock shareholder value.
Successful execution improves capital efficiency, supports high-margin business growth, and enhances upside potential, reinforcing the 56% target price appreciation case.


The Beat Ideas: Edelweiss 2.0 - Unlocking Value Through Deleveraging and Strategic Listings

<ul>
<li>Edelweiss has executed well over the past three years led by its pivot towards fee-based model. Its asset management businesses have grown rapidly, contributing significantly to the fee income.</li>
<li>The credit businesses are still struggling in terms of growth, but they have been pivoted successfully towards the co-lending model and the next couple of years could see significant growth.</li>
<li>The insurance businesses are also on track to breakeven over the next couple of years in line with the management's prior guidance.</li>
</ul>


Edelweiss has executed well over the past three years led by its pivot towards fee-based model. Its asset management businesses have grown rapidly, contributing significantly to the fee income.
The credit businesses are still struggling in terms of growth, but they have been pivoted successfully towards the co-lending model and the next couple of years could see significant growth.
The insurance businesses are also on track to breakeven over the next couple of years in line with the management's prior guidance.


Edelweiss: Last 3Y Have Seen Tremendous Shift, Next 2Y Should Be Even Better

<ul>
<li>Edelweiss reported a decent Q3FY25 with ex-Insurance PAT of INR 185cr, a growth of 16% YoY excluding NBFC PAT. Growth was led by Asset Management and Insurance businesses.</li>
<li>Within the Credit business, the Home Finance business which operates under the brand Nido is scaling up well. It disbursed INR 400cr+ worth of retail loans during Q3FY25.</li>
<li>Edelweiss is focusing on unlocking value and has already filed DRHP for its Alternative Asset Management business. Once approved, it will proceed for an IPO with OFS of INR 1500cr.</li>
</ul>


Edelweiss reported a decent Q3FY25 with ex-Insurance PAT of INR 185cr, a growth of 16% YoY excluding NBFC PAT. Growth was led by Asset Management and Insurance businesses.
Within the Credit business, the Home Finance business which operates under the brand Nido is scaling up well. It disbursed INR 400cr+ worth of retail loans during Q3FY25.
Edelweiss is focusing on unlocking value and has already filed DRHP for its Alternative Asset Management business. Once approved, it will proceed for an IPO with OFS of INR 1500cr.


Edelweiss: Growing Well and Unlocking Value

<ul>
<li>Edelweiss reported a strong Q2FY25 performance led by consistent scaling up of its businesses, especially the asset management businesses. Its insurance businesses are also growing rapidly but are loss-making currently.</li>
<li>The credit businesses are also growing well with the shift to the co-lending model. 75%+ of lending in NBFC is now being done through the co-lending model. </li>
<li>Edelweiss' focus is on value unlocking and debt reduction. The asset management businesses are ripe for unlocking and Edelweiss is exploring a stake sale via IPO for its alternatives business.</li>
</ul>


Edelweiss reported a strong Q2FY25 performance led by consistent scaling up of its businesses, especially the asset management businesses. Its insurance businesses are also growing rapidly but are loss-making currently.
The credit businesses are also growing well with the shift to the co-lending model. 75%+ of lending in NBFC is now being done through the co-lending model. 
Edelweiss' focus is on value unlocking and debt reduction. The asset management businesses are ripe for unlocking and Edelweiss is exploring a stake sale via IPO for its alternatives business.


Edelweiss: Strong Q2FY25 | Focus on Value Unlocking

India

Edelweiss Financial Services is a diversified Indian financial services conglomerate offering a broad range of products and services, including credit (retail and corporate), asset management (mutual funds and alternative assets), asset reconstruction, and insurance (life and general). The company caters to corporations, institutions, and individuals, providing solutions such as investment banking, wealth management, and advisory services. Headquartered in Mumbai, India, it was founded in 1995.

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Edelweiss Financial Services (EDEL IN)

Edelweiss: All Stars Aligned for Next Two Years

All stars are aligned for Edelweiss led by continued growth momentum and value unlocking potential in its underlying businesses. An investment in...

Ankit Agrawal, CFA

The Beat Ideas: Edelweiss 2.0 - Unlocking Value Through Deleveraging and Strategic Listings

Edelweiss plans IPO and stake sale to reduce debt, strengthen balance sheet, and unlock shareholder value, supporting high-margin business growth...

Sudarshan Bhandari

Edelweiss: Last 3Y Have Seen Tremendous Shift, Next 2Y Should Be Even Better

Edelweiss has come a long way since the Sep 2018 IL&FS crisis. As guided, it has transformed from being a fund-based lending business to a fee...

Ankit Agrawal, CFA

Edelweiss: Growing Well and Unlocking Value

Edelweiss is scaling up its businesses well. The asset management and insurance businesses are growing at an industry leading pace. Edelweiss'...

Ankit Agrawal, CFA

Edelweiss: Strong Q2FY25 | Focus on Value Unlocking

Edelweiss is consistently scaling up its businesses well. As these businesses are reaching optimum scale and profitability, it has been prudent in...

Ankit Agrawal, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Edelweiss: All Stars Aligned for Next Two Years

All stars are aligned for Edelweiss led by continued growth momentum and value unlocking potential in its underlying businesses. An investment in...

Ankit Agrawal, CFA

The Beat Ideas: Edelweiss 2.0 - Unlocking Value Through Deleveraging and Strategic Listings

​Edelweiss plans IPO and stake sale to reduce debt, strengthen balance sheet, and unlock shareholder value, supporting high-margin business growth...

Sudarshan Bhandari

Edelweiss: Last 3Y Have Seen Tremendous Shift, Next 2Y Should Be Even Better

Edelweiss has come a long way since the Sep 2018 IL&FS crisis. As guided, it has transformed from being a fund-based lending business to a fee...

Ankit Agrawal, CFA

Edelweiss: Growing Well and Unlocking Value

Edelweiss is scaling up its businesses well. The asset management and insurance businesses are growing at an industry leading pace. Edelweiss'...

Ankit Agrawal, CFA

Edelweiss: Strong Q2FY25 | Focus on Value Unlocking

Edelweiss is consistently scaling up its businesses well. As these businesses are reaching optimum scale and profitability, it has been prudent in...

Ankit Agrawal, CFA

Edelweiss plans IPO and stake sale to reduce debt, strengthen balance sheet, and unlock shareholder value, supporting high-margin business growth...