Edelweiss Financial Services

Hii @paragbharambe
I am just sharing my guess and views ,
Disclaimer – please anyone don’t take it as buy or sell recommendation
Views

1. EAAA – they will go with IPO route , I don’t think they are getting right valuation for it as EFSL itself is trading at low valuation and( I don’t know it is possible or not )they can distribute the shares of EAAA to EFSL shareholders can delay (FY26) as majority earnings comes from this business and other businesses are still not mature

2. MF – great this business is growing But I think they should also focus on Alternatives currently they have around 1100crs AUM as per MF annual report fy 24 (it is from 2018 ) but couldn’t scale, let’s see latest business update mansion it

3. credit businesses – no hopes

4. Insurance businesses – life insurance business is struggling with grow but there can be upside if new accounting rules comes

5. ARC – management should give some clarity how the business will look in 3-5 years, how they will create value to shareholders as can’t be listed, and under which business it will do (I think mostly credit business) very very deep cyclical business ( for 12 -15 Years it can remain out of favour), they are continuously reducing the ARC debt

6. corporate debt – in the last AGM 2023 management gave range something around 7500- 8800cr currently they have exceeded it to 9300cr ?

Amc
Credit business
Life insurance
I think this will be the structure for value unlocking and once management shared during concall and all the businesses will require capital so IPO route and as Edelweiss will not trade on rich valuation to raise for its businesses (assumptions – they don’t want to be a holding company)

Debt reduction ways –

1. nuvama wealth – 3000cr 3500crs (more upside possible) ( can sale stake after 1 yr locking period ends after 26 sept 24 )
2. EAAA stake sale 1500 – 2000crs (possible upside IPO ROUTE )
3. EAAA investments – 1300crs (can’t say )
4. NBFC business current equity 3500crs will go down to 1500crs so 2000crs ( can’t say )
   Real estate – 1500crs (can’t say )
   Investments – 800crs (can’t say)
   Any other businesses stake sale (possibility) may required to grow them as well ( strategic)

So that’s were my views please don’t take it to buy or sell recommendation

guys please share your views too