Edelweiss at 52 Week High Levels of Rs 60+ ~ What is Broking!? ….BSE showed over 8 lakh shares volume today and price stability at @ Rs 61
Edelweiss ~ A Royal Flower in the Swiss Alps or a Lovely Classic Song from The Sound of Music or just another Indian Broking & Financial Firm !?
It’s a No Brainer that Heady Market Day spells great times for Broking Firms or Groups
Edelweiss has seen a High of Rs 1600 + in 2007 on a FV Rs 5 share….then came a split to FV Rs 1 in 2010 and a 1:1 Bonus Issue in August 2010….so the high gets adjusted to Rs 160+
First many Employees,including Excustive Director Himanshu Kaji took the ESOP at Rs 33 in April 2014….then last week on June 12,2014 Rakesh Jhunjhunwala picked up One Crore Shares at Rs 55 in a BSE Deal with Greater Pacific Capital (GPC) Mauritius I & III LLC selling off and exiting completely now their eight and a half year stake after a part exit in 2010
Promoters Rashesh Shah & Others held 37.15% of the Equity of Rs 76.90 crs held by nearly 131000 Shareholders at March 31,2014….of this Promoter holding 5.66 % are pledged or encumbered (2.10% of Total Equity)
FIIs held 22.58% of the Equity on March 31,2014.This needs to be adjusted for the GPC Mauritius Sale in June 2014…However in a May 17,2014 Meeting the Board has approved FII holding cap to be increased from 28% to 40%
Here are the FY 14 Results….Consolidated Topline was Rs 2534 crs with Bottomline at Rs 220 crs….EPS was Rs 2.86….Networth was Rs 2729 crs with Reserves at Rs 2657 crs and Investment in Company’s Own Shares deducted from Share Capital & Premium….this Investment is through Rs 160.81 crs lend to Employees Trusts which has been used to buy Shares for later alottment under ESOP…The Book Value is Rs 35.5
Relative Valuations at Share Price of Rs 61 give a PE of 21 and a PBV of 1.7
In April the board approved a buyback from the Open Market upto Rs 45/share and an aggregate of Rs 145 crs….This Buy Back commenced on May 5,2014
The Own Capital Employed at March 31,2014 was Rs 2729 crs with most of it deployed in Credit Activity that included Retail Finance
Segmentation is into 4 Revenue Streams ~ Credit incl Retail Finance most of it in Housing Finance,Commodities,Financial Markets including Asset Management & Life Insurance….Most of the Revenues ,Rs 1885 crs to be specific ,are from Capital or Fund Based Business….Finance Costs were Rs 1540 crs in FY 14
Net Borrowings were Rs 12948 crs with Net Gearing up from 3.1 x in FY 13 to 3.6 x in FY 14…Thus Total Capital Employed in the business is near Rs 16000 crs
They cater to nearly half a million clients across retail and wholesale with over a quarter of a million dp accounts
Dividend is 70% or Rs 0.70 for FY 14 (Interim is 55% & Final is 15%)
CARE Rating is AA for Long Term Debt while CRISIL has retained A1+ for fresh Short Term Debt Endeavour of Rs 1000 crs
So are we in for Non Linear Growth in the Bottomline in FY 15-FY 17 Three Year Period !?
Triggers clearly are the Great Expectations Era dawning yet again for the Indian Economy & Capital Markets,Company scaling up Capital Employed and the Bull has stocked up !
So what are Rakesh & Rashesh up to now ! ?