In the contemporary landscape of the Indian finance sector, profound shifts are evident as entities grapple with global economic fluctuations, changing regulatory frameworks, and the increasing influence of technology. This analysis provides a deep dive into the performance metrics and strategic positioning of key players in the finance sector as of June 8, 2024.
The entities span various sub-sectors, including insurance, non-banking financial companies (NBFCs), finance term lending, and stock broking.
The dataset provided, including metrics like market capitalization, profit after tax, and various financial ratios, offers a detailed snapshot, facilitating a comprehensive understanding of each entity’s market stance.
Overview of Key Companies
Life Insurance Corporation of India (LICI)
Operating in the insurance sector with a colossal market capitalization of ₹628,451.77 crore, LICI stands as a titan.
The company, working on a consolidated basis, reported a staggering profit after tax of ₹35,996.65 crore for the fiscal year ending March 2023.
With a price-to-earnings ratio of 15.36 and an impressively high return on equity (ROE) of 124.33%, LICI showcases robust profitability and efficiency in shareholder equity utilization.
Bajaj Finance Ltd.
As a prominent player in the NBFC space, Bajaj Finance Ltd. boasts a market cap of ₹445,767.42 crore. The company’s profit after tax stands at ₹11,507.69 crore, reflecting strong operational efficiency.
Despite a relatively high debt-to-equity ratio of 4.03, its ROE and return on capital employed (ROCE) are 23.7% and 11.76% respectively, indicating effective capital management.
Bajaj Finserv Ltd.
Another significant entity within the finance-investment sub-sector, Bajaj Finserv Ltd., commands a market cap of ₹249,646.13 crore.
It mirrors its affiliate in operational vigor, posting a profit after tax of ₹12,209.54 crore.
The company maintains a balanced leverage with a debt-to-equity ratio of 4.6, coupled with a ROE of 28.46% and a ROCE of 12.73%.
Indian Railway Finance Corporation Ltd. (IRFC)
Specializing in finance term lending, IRFC showcases a market cap of ₹226,869.26 crore.
With a profit after tax of ₹6,337.01 crore, the firm operates with a high debt-to-equity ratio of 9.21.
However, its lower ROE and ROCE at 14.66% and 5.32% respectively suggest challenges in generating returns as efficiently as its peers.
JIO Financial Services Ltd.
JIO Financial Services, an emerging entity in the NBFC sector, shows a unique market stance with a market cap of ₹224,366.23 crore but a nominal profit after tax of only ₹31.25 crore.
Its exceptionally high P/E ratio of 139.83 indicates market expectations of future growth, despite current minimal profitability.
Power Finance Corporation Ltd. (PFC)
Operating in the finance term lending sector, Power Finance Corporation Ltd. is a prominent entity with a market capitalization of ₹159,592.92 crore.
As a consolidated entity, it recorded a profit after tax of ₹21,178.59 crore for the fiscal year ending March 2023.
With a price-to-earnings ratio of 8.08 and a return on equity (ROE) of 27.18%, PFC demonstrates significant efficiency in generating profits relative to its shareholder equity.
Additionally, the company’s debt-to-equity ratio stands at 8.75, indicating a higher reliance on debt financing, which is characteristic of firms in the finance term lending industry.
Motilal Oswal Financial Services Ltd. (MOTILALOFS)
Motilal Oswal Financial Services Ltd., operating in the finance – stock broking sector, boasts a market cap of ₹144,821.88 crore.
The company reported a consolidated profit after tax of ₹932.82 crore for the year ending March 2023.
It commands a high price-to-earnings ratio of 59.33, reflecting investors’ high expectations of future earnings growth.
The firm maintains a moderate debt-to-equity ratio of 1.67 and showcases robust returns with an ROE of 15.86% and a return on capital employed (ROCE) of 12.97%.
SBI Life Insurance Company Ltd. (SBILIFE)
SBI Life Insurance operates with a standalone framework and has a market cap of ₹142,801.65 crore.
The company recorded a profit after tax of ₹1,720.57 crore in the fiscal year ending March 2023.
The high price-to-earnings ratio of 75.41 suggests a strong market belief in its future profitability.
With no debt and an ROE of 14.14%, SBILIFE exemplifies financial stability and effective equity utilization within the insurance sector.
REC Ltd. (RECLTD)
Specializing in finance term lending, REC Ltd. has a market capitalization of ₹130,818.57 crore and operates on a consolidated basis.
It reported a profit after tax of ₹11,166.98 crore for the fiscal year ending March 2023.
With a price-to-earnings ratio of 9.25 and a debt-to-equity ratio of 6.55, the company demonstrates a balanced approach to leveraging and profitability.
REC Ltd.’s ROE and ROCE are 20.62% and 9.14% respectively, indicating competent financial management.
HDFC Life Insurance Company Ltd. (HDFCLIFE)
Another major player in the insurance sector, HDFC Life Insurance Company Ltd., has a market cap of ₹121,055.14 crore.
Operating on a consolidated basis, it reported a profit after tax of ₹1,368.28 crore for the fiscal year ending March 2023.
The company’s price-to-earnings ratio stands at 76.91, reflecting high future growth expectations.
With an almost negligible debt-to-equity ratio of 0.07, HDFCLIFE shows a strong preference for equity financing and maintains an ROE of 9.6%.
Cholamandalam Investment and Finance Company Ltd. (CHOLAFIN)
Operating in the NBFC sector, Cholamandalam Investment and Finance Company Ltd. has a market capitalization of ₹112,495.37 crore.
The consolidated profit after tax is ₹2,676.67 crore for the year ending March 2023.
With a price-to-earnings ratio of 32.89 and a debt-to-equity ratio of 6.83, CHOLAFIN exhibits strong profitability alongside significant leverage, typical of NBFCs. The company’s ROE stands at 20.61%.
Shriram Finance Ltd. (SHRIRAMFIN)
Shriram Finance Ltd., also in the NBFC sector, holds a market cap of ₹93,831.07 crore.
It reported a consolidated profit after tax of ₹6,011.47 crore as of March 2023.
The price-to-earnings ratio of 12.74 and a debt-to-equity ratio of 3.79 suggest a balanced approach to growth and financing. SHRIRAMFIN’s ROE of 17.32% highlights its efficient use of equity in generating earnings.
Bajaj Holdings & Investment Ltd. (BAJAJHLDNG)
Bajaj Holdings, an NBFC, has a market cap of ₹93,175.48 crore.
The company’s profit after tax is ₹4,946.21 crore, reported on a consolidated basis for the fiscal year ending March 2023.
The price-to-earnings ratio of 12.82 indicates moderate investor expectations regarding its earnings potential. With no debt, the company’s ROE of 11.37% demonstrates its efficient capital management.
ICICI Prudential Life Insurance Company Ltd. (ICICIPRULI)
ICICI Prudential operates within the insurance sector with a market cap of ₹82,386.52 crore.
For the fiscal year ending March 2024, it posted a profit after tax of ₹850.66 crore on a consolidated basis.
The price-to-earnings ratio of 7.73 and an extremely low debt-to-equity ratio of 0.11 reflect the company’s conservative financial strategy and its focus on sustainable growth with a solid equity base.
HDFC Asset Management Company Ltd. (HDFCAMC)
Specializing in asset management, HDFC Asset Management Company has a market cap of ₹81,576.51 crore.
The company reported a consolidated profit after tax of ₹1,423.37 crore for the year ending March 2023.
With a high price-to-earnings ratio of 41.99 and no debt, HDFCAMC highlights its profitability and financial health, supported by a high ROE of 23.74% and an impressive ROCE of 30.78%.
ICICI Lombard General Insurance Company Ltd. (ICICIGI)
ICICI Lombard, operating in the insurance sector, holds a market cap of ₹81,576.27 crore.
The company operates on a standalone basis and reported a profit after tax of ₹1,918.59 crore for the fiscal year ending March 2024.
It has a high price-to-earnings ratio of 42.8, demonstrating strong market confidence in its future earnings potential.
With no debt, ICICIGI maintains a solid return on equity (ROE) of 17.17% and an impressive return on capital employed (ROCE) of 22.79%, indicating efficient management and profitable operations.
Muthoot Finance Ltd. (MUTHOOTFIN)
Muthoot Finance, a major player in the NBFC sector, has a market capitalization of ₹71,195.21 crore.
It operates on a consolidated basis, posting a profit after tax of ₹3,669.77 crore for the fiscal year ending March 2023.
The price-to-earnings ratio is 16.46, reflecting reasonable investor expectations of growth.
MUTHOOTFIN has a debt-to-equity ratio of 2.58, balancing leverage and profitability with an ROE of 18.15% and a ROCE of 12.13%.
SBI Cards And Payment Services Ltd. (SBICARD)
SBI Cards, part of the NBFC sector, has a market cap of ₹68,055.99 crore. On a standalone basis, it reported a profit after tax of ₹2,407.88 crore for the year ending March 2024.
The price-to-earnings ratio of 28.26 indicates a positive outlook from investors on its financial prospects.
SBICARD’s debt-to-equity ratio stands at 3.3, with robust returns demonstrated by an ROE of 22.03% and a ROCE of 14.09%.
General Insurance Corporation of India (GICRE)
Operating in the insurance sector, GICRE boasts a market capitalization of ₹63,912.79 crore.
As a consolidated entity, it recorded a significant profit after tax of ₹6,907.31 crore for the fiscal year ending March 2023.
The price-to-earnings ratio is 9.56, suggesting a value-based approach from investors.
GICRE operates with no debt, showcasing high efficiency with an ROE of 21.31% and an exceptional ROCE of 25.8%.
Aditya Birla Capital Ltd. (ABCAPITAL)
Aditya Birla Capital, active in the NBFC sector, has a market capitalization of ₹60,339.99 crore.
On a consolidated basis, it reported a profit after tax of ₹4,824.07 crore for the fiscal year ending March 2023.
The price-to-earnings ratio stands at 18.09. With a debt-to-equity ratio of 4.2, ABCAPITAL demonstrates significant leverage but maintains a high ROE of 27.27% and a ROCE of 11.64%.
Sundaram Finance Ltd. (SUNDARMFIN)
Sundaram Finance, a player in the NBFC sector, has a market capitalization of ₹50,488.93 crore.
It reported a consolidated profit after tax of ₹1,271.75 crore for the year ending March 2024.
With a price-to-earnings ratio of 35.16, the market reflects a premium on its earnings expectations.
SUNDARMFIN’s debt-to-equity ratio of 4.31 indicates reliance on leverage, with a moderate ROE of 13.6% and a ROCE of 8.42%.
Housing & Urban Development Corporation Ltd. (HUDCO)
HUDCO, operating in the finance-housing sector, has a market cap of ₹49,757.22 crore.
It reported a consolidated profit after tax of ₹1,701.43 crore for the fiscal year ending March 2024.
The price-to-earnings ratio of 23.51 shows investor optimism. HUDCO maintains a debt-to-equity ratio of 4.07, with an ROE of 11.38% and a ROCE of 8.81%.
Indian Renewable Energy Development Agency Ltd. (IREDA)
IREDA, part of the NBFC sector focusing on renewable energy financing, has a market cap of ₹48,608.22 crore.
It operates on a standalone basis and posted a profit after tax of ₹1,252.23 crore for the year ending March 2024.
The price-to-earnings ratio of 38.82 reflects strong future growth expectations.
With a debt-to-equity ratio of 5.8, IREDA shows a strategic use of leverage, yielding an ROE of 17.28% and a ROCE of 9.29%.
L&T Finance Ltd. (LTF)
L&T Finance, active in the NBFC sector, holds a market capitalization of ₹41,879.10 crore.
On a consolidated basis, it reported a profit after tax of ₹2,317.13 crore for the fiscal year ending March 2024.
The price-to-earnings ratio of 18.05 indicates a balanced market valuation. LTF’s debt-to-equity ratio of 3.28 supports a moderate ROE of 10.36% and a ROCE of 8.24%.
Nippon Life India Asset Management Ltd. (NAM-INDIA)
Specializing in asset management, Nippon Life India Asset Management has a market cap of ₹38,105.69 crore.
It operates on a consolidated basis, recording a profit after tax of ₹722.93 crore for the fiscal year ending March 2023.
With a high price-to-earnings ratio of 34.41 and no debt, NAM-INDIA emphasizes its profitability and operational efficiency, boasting an ROE of 21.4% and an impressive ROCE of 26.64%.
The New India Assurance Company Ltd. (NIACL)
Operating in the insurance sector, The New India Assurance Company holds a market capitalization of ₹36,429.04 crore.
It operates on a consolidated basis, achieving a profit after tax of ₹1,048 crore for the fiscal year ending March 2023. The price-to-earnings ratio stands at 32.63.
With no debt, NIACL exhibits a return on equity (ROE) of 5.27% and a return on capital employed (ROCE) of 6.25%, reflecting modest profitability.
LIC Housing Finance Ltd. (LICHSGFIN)
LIC Housing Finance, specializing in housing finance, has a market capitalization of ₹36,411.42 crore.
On a consolidated basis, it reported a profit after tax of ₹2,891.17 crore for the fiscal year ending March 2023.
The price-to-earnings ratio is 7.64, indicating a value investment opportunity. LICHSGFIN’s high debt-to-equity ratio of 9 is balanced by an ROE of 11.13% and a ROCE of 7.57%.
BSE Ltd. (BSE)
BSE Ltd., operating in financial services, commands a market cap of ₹36,305.23 crore.
The company posted a profit after tax of ₹205.65 crore on a consolidated basis for the fiscal year ending March 2023. With a high price-to-earnings ratio of 46.64, the stock reflects strong investor interest.
BSE operates debt-free and shows a return on equity of 6.09% and a return on capital employed of 9.89%.
Poonawalla Fincorp Ltd. (POONAWALLA)
Poonawalla Fincorp, in the NBFC sector, has a market cap of ₹36,065.2 crore.
It achieved a consolidated profit after tax of ₹569.81 crore for the fiscal year ending March 2023.
With a price-to-earnings ratio of 21.43, the company shows moderate growth prospects.
It has a debt-to-equity ratio of 1.65, with an ROE of 8.92% and a ROCE of 7.93%.
Mahindra & Mahindra Financial Services Ltd. (M&MFIN)
This NBFC has a market cap of ₹34,860.48 crore and reported a consolidated profit after tax of ₹2,071.2 crore for the fiscal year ending March 2023.
The price-to-earnings ratio is 18.04. M&MFIN’s debt-to-equity ratio of 4.4 supports a solid ROE of 11.71% and a ROCE of 8.82%.
Tata Investment Corporation Ltd. (TATAINVEST)
Tata Investment Corporation operates in the NBFC sector with a market cap of ₹32,583.62 crore.
It posted a consolidated profit after tax of ₹251.75 crore for the fiscal year ending March 2023.
The exceptionally high price-to-earnings ratio of 84.64 indicates very high investor expectations.
With virtually no debt, the ROE is low at 1.28%, and ROCE is 1.42%.
Max Financial Services Ltd. (MFSL)
Max Financial Services, operating in financial services, has a market cap of ₹32,326.9 crore.
It reported a consolidated profit of ₹451.89 crore for the fiscal year ending March 2023.
The price-to-earnings ratio of 95.06 is very high, suggesting strong future growth expectations.
With minimal debt, MFSL demonstrates an ROE of 12.13% and a high ROCE of 13.76%.
Go Digit General Insurance Ltd. (GODIGIT)
Operating in the insurance sector, Go Digit has a market capitalization of ₹31,166.54 crore.
It operates on a standalone basis, reporting a modest profit after tax of ₹35.55 crore for the fiscal year ending March 2023.
Despite a high price-to-earnings ratio of 876.76, indicative of extreme market expectations, the company maintains an ROE and ROCE both at 1.67%.
Star Health and Allied Insurance Company Ltd. (STARHEALTH)
Star Health, in the insurance sector, has a market capitalization of ₹29,210.48 crore.
It operates standalone, posting a profit after tax of ₹618.59 crore for the fiscal year ending March 2024.
With a price-to-earnings ratio of 34.57, the company shows robust growth potential.
STARHEALTH’s slight debt with an ROE of 12.42% and a ROCE of 14.83% indicates effective management and profitable operation.
360 One Wam Ltd. (360ONE)
360 One Wam, part of the financial services sector, has a market cap of ₹28,893.45 crore.
It reported a consolidated profit after tax of ₹657.89 crore for the fiscal year ending March 2024.
With a price-to-earnings ratio of 35.93, investor expectations are high. The company’s moderate debt-to-equity ratio of 2.23 supports an ROE of 22.01% and a ROCE of 13.37%, reflecting efficient capital use and strong profitability.
CreditAccess Grameen Ltd. (CREDITACC)
CreditAccess Grameen, a non-banking financial company (NBFC) focused on microfinance, has a market capitalization of ₹23,850.91 crore.
It reported a profit after tax of ₹826.06 crore for the fiscal year ending March 2023.
With a price-to-earnings ratio of 16.5, the company maintains a debt-to-equity ratio of 3.21.
The return on equity (ROE) stands at 17.87%, and the return on capital employed (ROCE) is 12.06%, reflecting strong operational efficiency.
Angel One Ltd. (ANGELONE)
Operating in the stock broking industry, Angel One has a market capitalization of ₹23,299.81 crore.
It achieved a profit after tax of ₹890.19 crore for the fiscal year ending March 2023.
The company boasts a high price-to-earnings ratio of 20.7 and a debt-to-equity ratio of 0.37, showcasing impressive profitability with a return on equity of 48.45% and a return on capital employed of 44.3%.
ICICI Securities Ltd. (ISEC)
ICICI Securities, another major player in stock broking, holds a market cap of ₹23,221.47 crore.
The company recorded a profit after tax of ₹1,117.63 crore for the fiscal year ending March 2023.
It has a price-to-earnings ratio of 13.69 and a relatively moderate debt-to-equity ratio of 3.32.
ISEC’s return on equity is 42.93%, and its return on capital employed is 18.25%.
Five-Star Business Finance Ltd. (FIVESTAR)
Five-Star Business Finance, specializing in NBFC services, has a market capitalization of ₹23,186.31 crore.
Operating on a standalone basis, it posted a profit after tax of ₹603.5 crore for the fiscal year ending March 2023.
The company’s price-to-earnings ratio is 27.74, with a debt-to-equity ratio of 0.99.
The return on equity stands at 15.17%, and the return on capital employed is 14.44%.
Cholamandalam Financial Holdings Ltd. (CHOLAHLDNG)
Cholamandalam Financial Holdings, operating in the investment sector, has a market capitalization of ₹22,496.68 crore.
It reported a consolidated profit after tax of ₹2,818.31 crore for the fiscal year ending March 2023.
The price-to-earnings ratio is 12.69, and it carries a high debt-to-equity ratio of 12.82.
Its ROE is 40.34%, and ROCE is 10.64%.
Central Depository Services (India) Ltd. (CDSL)
CDSL, providing depository services, boasts a market cap of ₹21,754.81 crore.
It reported a profit after tax of ₹275.96 crore for the fiscal year ending March 2023.
With a high price-to-earnings ratio of 51.91, CDSL operates debt-free and has an ROE of 23.93% and a ROCE of 31.67%.
IIFL Finance Ltd. (IIFL)
IIFL Finance, involved in investment finance, has a market capitalization of ₹19,953.59 crore.
It achieved a profit after tax of ₹1,607.55 crore in the fiscal year ending December 2023.
The price-to-earnings ratio is 11.07, with a debt-to-equity ratio of 4.41.
IIFL’s return on equity is 20.83%, and its return on capital employed is 11.8%.
PNB Housing Finance Ltd. (PNBHOUSING)
Specializing in housing finance, PNB Housing has a market cap of ₹19,390.99 crore.
It posted a profit after tax of ₹1,046 crore for the fiscal year ending March 2024.
With a price-to-earnings ratio of 12.86, the company has a debt-to-equity ratio of 4.89.
Its ROE is 10.07%, and ROCE is 8.25%.
Multi Commodity Exchange of India Ltd. (MCX)
MCX, a key player in the stock broking sector, has a market capitalization of ₹18,511.9 crore.
It reported a profit after tax of ₹148.97 crore for the fiscal year ending March 2024.
The extremely high price-to-earnings ratio of 222.74 reflects significant investor interest, with an ROE of 7.42% and a ROCE of 9.51%.
Piramal Enterprises Ltd. (PEL)
Operating as an NBFC, Piramal Enterprises has a market capitalization of ₹18,444.08 crore. It reported a substantial profit after tax of ₹9,968.58 crore for the fiscal year ending March 2024.
Despite a low price-to-earnings ratio of zero, its debt-to-equity ratio stands at 1.6. PEL’s return on equity is 29.96%, and its return on capital employed is 11.69%.
IDFC Ltd. (IDFC)
IDFC Ltd., operating as a non-banking financial company (NBFC), has a market capitalization of ₹18,415.82 crore.
The company posted a profit after tax of ₹673.33 crore for the fiscal year ending March 2023.
It boasts a price-to-earnings ratio of 17.61 and a price-to-book value of 1.38. With a debt-equity ratio of zero, IDFC shows prudent financial management.
The return on equity (ROE) and return on capital employed (ROCE) stand at 6.56% and 10.38%, respectively.
Nuvama Wealth Management Ltd. (NUVAMA)
Nuvama Wealth Management, previously known as Edelweiss Financial Services, has a market capitalization of ₹18,360.83 crore.
In the fiscal year ending March 2022, it reported a profit after tax of ₹187.94 crore.
The price-to-earnings ratio is 29.36, and the price-to-book value is 6.41.
Despite a negative debt-equity ratio indicating potential financial restructuring or anomaly, its ROCE stands at 12.81%.
Authum Investment & Infrastructure Ltd. (AIIL)
Authum Investment & Infrastructure, focusing on finance and investment, has a market cap of ₹17,969.61 crore.
It recorded a substantial profit after tax of ₹4,304.02 crore for the fiscal year ending March 2023.
With a very low price-to-earnings ratio of 4.19 and a price-to-book value of 1.74, AIIL demonstrates exceptional profitability metrics with an ROE of 125.98% and an ROCE of 90.46%.
Capri Global Capital Ltd. (CGCL)
Capri Global Capital, also in the finance and investment sector, has a market capitalization of ₹17,736.21 crore.
It reported a profit after tax of ₹204.65 crore for the fiscal year ending March 2023.
The company has a high price-to-earnings ratio of 63.48 and a price-to-book value of 4.62.
Its modest ROE and ROCE are 7.51% and 8.99%, respectively.
Computer Age Management Services Ltd. (CAMS)
CAMS, providing depository services, holds a market cap of ₹16,755.31 crore.
It achieved a profit after tax of ₹284.63 crore for the fiscal year ending March 2023.
CAMS sports a high price-to-earnings ratio of 47.38 and an even higher price-to-book value of 18.32.
Its financial performance is robust with an ROE of 42.3% and an ROCE of 54.26%.
Aditya Birla Sun Life AMC Ltd. (ABSLAMC)
This asset management company has a market capitalization of ₹16,608.86 crore, with a profit after tax of ₹596.38 crore reported in the fiscal year ending March 2023.
ABSLAMC’s price-to-earnings ratio is 21.28, and its price-to-book value is 5.24.
It shows a strong return on equity of 26% and a return on capital employed of 33.86%.
Anand Rathi Wealth Ltd. (ANANDRATHI)
Anand Rathi Wealth, another player in the financial sector, has a market capitalization of ₹16,357.37 crore.
The firm posted a profit after tax of ₹225.82 crore for the fiscal year ending March 2024.
It has a high price-to-earnings ratio of 72.71 and a price-to-book value of 25.29, with an ROE of 40.7% and an ROCE of 54.64%.
Aptus Value Housing Finance India Ltd. (APTUS)
Aptus Value Housing operates in the housing finance sector with a market capitalization of ₹15,884.84 crore.
It reported a profit after tax of ₹503.01 crore for the fiscal year ending March 2023.
The company’s price-to-earnings ratio is 25.96, and the price-to-book value is 4.22. Its ROE is 16.11%, and ROCE is 14.58%.
Aadhar Housing Finance Ltd. (AADHARHFC)
Aadhar Housing Finance has a market cap of ₹15,589.25 crore.
The company recorded a profit after tax of ₹544.76 crore for the fiscal year ending March 2023.
With a price-to-earnings ratio of 20.8 and a price-to-book value of 2.11, it has a debt-equity ratio of 3.31.
The ROE and ROCE are 16% and 10.08%, respectively.
Manappuram Finance Ltd. (MANAPPURAM)
Manappuram Finance, specializing in NBFC services, has a market capitalization of ₹15,151.18 crore.
The company reported a profit after tax of ₹1,500.17 crore for the fiscal year ending March 2023.
It has a price-to-earnings ratio of 6.92 and a price-to-book value of 1.31. Manappuram’s ROE is 16.68%, and its ROCE is 11.98%.
IFCI Ltd. (IFCI)
IFCI Ltd., operating in the finance term lending sector, has a market capitalization of ₹15,046.44 crore.
Despite a loss after tax of ₹119.78 crore for the fiscal year ending March 2023, the company has a price-to-earnings ratio of 145.17, suggesting market anticipation of future profitability.
The price-to-book value is relatively low at 2.93.
With a debt-equity ratio of 1.79, its negative return on equity (-3.87%) reflects current financial challenges, though it maintains a return on capital employed of 6.78%.
Aavas Financiers Ltd. (AAVAS)
Aavas Financiers Ltd., specializing in housing finance, boasts a market capitalization of ₹13,249.97 crore.
It reported a profit after tax of ₹429.64 crore for the fiscal year ending March 2023.
The company has a price-to-earnings ratio of 27 and a price-to-book value of 3.51.
With a solid debt-equity ratio of 3.05, Aavas demonstrates a healthy return on equity of 14.32% and a return on capital employed of 9.56%.
KFin Technologies Ltd. (KFINTECH)
KFin Technologies, a provider of depository services, has a market capitalization of ₹12,224.14 crore.
It earned a profit after tax of ₹195.74 crore in the fiscal year ending March 2023.
KFINTECH has a high price-to-earnings ratio of 49.68 and a price-to-book value of 10.71.
Its return on equity is 26.31%, and return on capital employed stands impressively at 30.44%.
UTI Asset Management Company Ltd. (UTIAMC)
UTI AMC, operating in asset management, has a market cap of ₹12,212.24 crore with a profit after tax of ₹439.68 crore reported for fiscal 2023.
The company has a moderate price-to-earnings ratio of 15.95 and a price-to-book value of 2.78.
With no debt, its return on equity is 11.96%, and the return on capital employed is 15.9%.
Indiabulls Housing Finance Ltd. (IBULHSGFIN)
Indiabulls Housing Finance, with a market cap of ₹11,811.49 crore, reported a profit after tax of ₹1,127.68 crore for fiscal 2023.
It has a low price-to-earnings ratio of 9.73 and an even lower price-to-book value of 0.6, reflecting potential undervaluation or sector-specific issues.
The company’s return on equity is 6.7%, and the return on capital employed is 9.8%.
Can Fin Homes Ltd. (CANFINHOME)
Can Fin Homes, also in the housing finance sector, has a market cap of ₹10,309.46 crore and a profit after tax of ₹621.21 crore for fiscal 2023.
It has a price-to-earnings ratio of 13.73 and a price-to-book value of 2.37.
The company has a high debt-equity ratio of 7.97, with a return on equity of 18.51% and a return on capital employed of 8.36%.
Bengal & Assam Company Ltd. (533095)
Bengal & Assam Company, a finance NBFC, holds a market cap of ₹9,344.55 crore, posting a profit after tax of ₹452.80 crore for fiscal 2023.
The extremely low price-to-earnings ratio of 2.4 and price-to-book value of 1.03 suggest significant undervaluation or investor skepticism.
The company’s return on equity is 9%, and the return on capital employed is 11.12%.
SBFC Finance Ltd. (SBFC)
SBFC Finance, operating in the finance sector, has a market cap of ₹9,077.83 crore and reported a profit after tax of ₹237.10 crore for fiscal 2024.
The price-to-earnings ratio stands at 38.29, and the price-to-book value is 3.3.
It shows a return on equity of 10.67% and a return on capital employed of 10.93%.
Kama Holdings Ltd. (532468)
Kama Holdings, in the finance investment sector, has a market cap of ₹7,828.5 crore with a notable profit after tax of ₹2,324.45 crore for fiscal 2023.
The price-to-earnings ratio is low at 8.96, and the price-to-book value is 1.18.
It exhibits a high return on equity of 44.09% and a return on capital employed of 34.7%.
JM Financial Ltd. (JMFINANCIL)
JM Financial, also in the finance investment sector, has a market cap of ₹7,643.79 crore, earning a profit after tax of ₹708.76 crore for fiscal 2023.
With a price-to-earnings ratio of 18.65 and a price-to-book value of 0.91, the company shows a return on equity of 8.98% and a return on capital employed of 9.44%.
Home First Finance Company India Ltd. (HOMEFIRST)
Home First Finance Company India Ltd., a key player in the housing finance sector, has a market capitalization of ₹7,576.87 crore.
It reported a profit after tax of ₹305.72 crore for the fiscal year ending March 2024.
With a price-to-earnings ratio of 24.78 and a price-to-book value of 3.64, it demonstrates a solid financial standing.
The debt-equity ratio stands at 3.51, with a return on equity of 15.78% and a return on capital employed of 11.25%.
JSW Holdings Ltd. (JSWHL)
JSW Holdings Ltd., involved in finance and investment, maintains a market capitalization of ₹7,434.20 crore.
The company recorded a profit after tax of ₹299.61 crore as of March 2024.
It features a high price-to-earnings ratio of 47.79 and a notably low price-to-book value of 0.29, reflecting potential market undervaluation or sectoral challenges.
JSWHL shows minimal returns on equity and capital employed, at 1.52% and 2.04%, respectively.
Religare Enterprises Ltd. (RELIGARE)
Religare Enterprises Ltd. stands out in the finance and investment sector with a market cap of ₹7,288.32 crore and an extraordinary profit after tax of ₹3,168.62 crore for the fiscal year ending March 2024.
The price-to-earnings ratio is 31.29, and the price-to-book value is 3.11.
RELIGARE boasts an astonishingly high return on equity of 592.99% and a return on capital employed of 117.45%, indicating highly efficient profitability.
Choice International Ltd. (CHOICEIN)
Operating in the stock broking industry, Choice International Ltd. has a market cap of ₹7,200.57 crore with a profit after tax of ₹60.07 crore for fiscal 2024.
The company shows a price-to-earnings ratio of 55.03 and a high price-to-book value of 12.21, indicating a premium valuation.
It has a return on equity of 15.08% and a return on capital employed of 16.93%.
Prudent Corporate Advisory Services Ltd. (PRUDENT)
Prudent Corporate Advisory Services Ltd., categorized under finance and others, holds a market capitalization of ₹7,101.25 crore.
It reported a profit after tax of ₹116.69 crore for the year ending March 2024, with a high price-to-earnings ratio of 51.18 and an even higher price-to-book value of 14.75.
The return on equity is 39.72%, and the return on capital employed is 54.08%.
IIFL Securities Ltd. (IIFLSEC)
IIFL Securities Ltd., in the finance investment sector, boasts a market cap of ₹6,732.61 crore and a profit after tax of ₹249.81 crore as of March 2024.
The price-to-earnings ratio is 13.14, with a price-to-book value of 3.77.
IIFLSEC has a return on equity of 19.87% and a return on capital employed of 23.04%.
India Shelter Finance Corporation Ltd. (INDIASHLTR)
India Shelter Finance Corporation Ltd. focuses on housing finance with a market cap of ₹6,628.07 crore and a profit after tax of ₹247.60 crore for fiscal 2024.
It has a price-to-earnings ratio of 26.77 and a price-to-book value of 2.90.
The company’s return on equity is 14.12%, with a return on capital employed of 12.31%.
Edelweiss Financial Services Ltd. (EDELWEISS)
Edelweiss Financial Services Ltd., an NBFC, has a market capitalization of ₹6,524.94 crore with a profit of ₹405.56 crore for the fiscal year 2024.
It exhibits a price-to-earnings ratio of 15.51 and a price-to-book value of 1.37.
The return on equity is 6.17%, and the return on capital employed is 10.25%.
Share India Securities Ltd. (SHAREINDIA)
Share India Securities Ltd., in the stock broking sector, holds a market cap of ₹6,073.02 crore.
It reported a profit after tax of ₹330.67 crore for the year 2024.
The company has a price-to-earnings ratio of 14.28 and a price-to-book value of 3.38.
It demonstrates an impressive return on equity and capital employed at 53.05% and 53.88%, respectively.
Sundaram Finance Holdings Ltd. (SUNDARMHLD)
Sundaram Finance Holdings Ltd., engaged in finance and investment, has a market cap of ₹5,991.25 crore and reported a modest profit after tax of ₹31.51 crore for fiscal 2024.
The price-to-earnings ratio is 11.24, and the price-to-book value is 1.59.
The returns on equity and capital employed are notably low, at 0.96% and 1.43%, respectively.
Paisalo Digital Ltd. (PAISALO)
Paisalo Digital Ltd., operating in the non-banking financial sector, holds a market capitalization of ₹5,839.08 crore.
The company reported a profit after tax of ₹93.62 crore for the fiscal year ending March 2024.
It features a price-to-earnings ratio of 32.63 and a price-to-book value of 4.39.
Paisalo Digital’s debt-equity ratio is 1.83, with a return on equity of 8.66% and a return on capital employed of 11.22%.
Spandana Sphoorty Financial Ltd. (SPANDANA)
Spandana Sphoorty Financial Ltd., another player in the NBFC sector, has a market cap of ₹5,559.31 crore and reported a modest profit after tax of ₹12.39 crore in 2024.
It shows a low price-to-earnings ratio of 11.1 and a price-to-book value of 1.53.
The company has a debt-equity ratio of 1.99, with very low returns on equity and capital employed at 0.41% and 5.96%, respectively.
MAS Financial Services Ltd. (MASFIN)
Operating within the finance term lending niche, MAS Financial Services Ltd. boasts a market cap of ₹4,820.37 crore, with a profit after tax of ₹205.82 crore for 2024.
The company has a price-to-earnings ratio of 19.2 and a price-to-book value of 2.7, alongside a debt-equity ratio of 4.03.
It exhibits a return on equity of 14.35% and a return on capital employed of 11.45%.
Fusion Micro Finance Ltd. (FUSION)
Fusion Micro Finance Ltd. operates with a market capitalization of ₹4,651.14 crore, posting a profit after tax of ₹387.14 crore as of March 2024.
With a price-to-earnings ratio of 9.2 and a price-to-book value of 1.63, Fusion represents an efficient operation with a debt-equity ratio of 2.93, and impressive returns on equity and capital employed of 21.27% and 14.34%, respectively.
Fedbank Financial Services Ltd. (FEDFINA)
Fedbank Financial Services Ltd. has a market cap of ₹4,524.12 crore and reported a profit after tax of ₹180.13 crore for the fiscal year 2024.
It shows a price-to-earnings ratio of 18.49 and a price-to-book value of 2.0.
The high debt-equity ratio of 5.32 reflects its leverage, with returns on equity and capital employed at 14.49% and 9.76%, respectively.
Pilani Investment And Industries Corporation Ltd. (PILANIINVS)
Pilani Investment And Industries Corporation Ltd., engaged in finance and investment, has a market cap of ₹4,225.95 crore, with a profit of ₹155.92 crore for the fiscal year 2024.
The firm has a price-to-earnings ratio of 25.39 and a strikingly low price-to-book value of 0.29, indicating a possible undervaluation.
The return on equity is 1.4%, with a return on capital employed of 2.26%.
Muthoot Microfin Ltd. (MUTHOOTMF)
Muthoot Microfin Ltd., part of the NBFC sector, boasts a market cap of ₹3,753.39 crore and a profit after tax of ₹163.89 crore for 2024.
The company’s price-to-earnings ratio is 8.35, and it has a price-to-book value of 1.34.
With a debt-equity ratio of 4.01, it shows a return on equity of 11.25% and a return on capital employed of 11.33%.
Sindhu Trade Links Ltd. (SINDHUTRAD)
Sindhu Trade Links Ltd. operates with a market capitalization of ₹3,546.44 crore but reported a loss of ₹3.48 crore in 2024.
The price-to-earnings ratio is high at 50.12, and the price-to-book value is 2.37.
It has a negative return on equity of -0.28% and a return on capital employed of 6.25%.
Indostar Capital Finance Ltd. (INDOSTAR)
Indostar Capital Finance Ltd. features a market cap of ₹3,229.16 crore with a profit after tax of ₹225.15 crore for 2024.
It has a price-to-earnings ratio of 27.88 and a price-to-book value of 1.0.
The company’s debt-equity ratio is 1.83, with a return on equity of 7.57% and a return on capital employed of 9.14%.
Repco Home Finance Ltd. (REPCOHOME)
Repco Home Finance Ltd., part of the housing finance sector, has a market cap of ₹3,097.41 crore and reported a profit of ₹296.08 crore for 2024.
The price-to-earnings ratio is 7.44, and the price-to-book value is 1.04, indicating value pricing.
The firm has a debt-equity ratio of 3.83, with a return on equity of 12.14% and a return on capital employed of 9%.
Dhani Services Ltd. (DHANI)
Dhani Services Ltd., a player in the stock broking sector, has a market capitalization of ₹2,637.13 crore.
The company reported a significant loss of ₹481.31 crore for the fiscal year ending March 2024.
It exhibits a price-to-book value of 0.77 and has a notably low debt-equity ratio of 0.25.
However, the return on equity and return on capital employed are deeply negative, at -10.97% and -5.59% respectively.
Satin Creditcare Network Ltd. (SATIN)
Satin Creditcare Network Ltd., operating in the finance term lending sector, has a market cap of ₹2,632.52 crore with a minimal profit after tax of ₹4.81 crore for the year 2024.
The company has a price-to-earnings ratio of 6.04 and a price-to-book value of 1.1. Its debt-equity ratio is 3.7, and it shows a low return on equity of 0.31% and a return on capital employed of 8.37%.
Dolat Algotech Ltd. (DOLATALGO)
Dolat Algotech Ltd. is involved in stock broking and commands a market cap of ₹2,610.08 crore.
The company posted a profit of ₹116.37 crore in 2024, with a price-to-earnings ratio of 16.59 and a price-to-book value of 3.3.
It has a low debt-equity ratio of 0.22 and high returns on equity and capital employed of 19.95% and 25.53%, respectively.
Ugro Capital Ltd. (UGROCAP)
Ugro Capital Ltd., part of the NBFC sector, holds a market cap of ₹2,600.14 crore and a profit after tax of ₹39.78 crore for 2024.
It shows a price-to-earnings ratio of 21.79 and a price-to-book value of 1.81.
The company’s debt-equity ratio is 3.22, with returns on equity and capital employed of 4.1% and 10.93%, respectively.
PTC India Financial Services Ltd. (PFS)
Operating as a non-banking financial company, PTC India Financial Services has a market capitalization of ₹2,547.94 crore and reported a profit after tax of ₹175.81 crore for 2024.
It has a price-to-earnings ratio of 15.85 and a price-to-book value of 1.
Its debt-equity ratio stands at 2.1, with a return on equity of 7.47% and a return on capital employed of 7.85%.
Geojit Financial Services Ltd. (GEOJITFSL)
Geojit Financial Services Ltd., active in stock broking, holds a market cap of ₹2,359.16 crore with a profit of ₹96.46 crore for the year 2024.
The company’s price-to-earnings ratio is 16.29 and its price-to-book value is 2.84.
It has a very low debt-equity ratio of 0.11, with returns on equity and capital employed of 13.61% and 16.44%, respectively.
Arman Financial Services Ltd. (ARMANFIN)
Arman Financial Services Ltd., also an NBFC, boasts a market cap of ₹2,348.43 crore and a profit of ₹93.81 crore in 2024.
It has a price-to-earnings ratio of 13.53 and a price-to-book value of 2.89, with a high debt-equity ratio of 4.39.
The company reports robust returns on equity and capital employed of 32.46% and 18.74%, respectively.
SG Finserve Ltd. (539199)
SG Finserve Ltd., part of the NBFC sector, has a market capitalization of ₹2,326.16 crore and posted a profit of ₹18.41 crore for the fiscal year 2024.
The price-to-earnings ratio stands at 29.6 and the price-to-book value at 2.88.
The company has a moderate debt-equity ratio of 0.95, with a return on equity of 6.99% and a return on capital employed of 6.22%.
BF Investment Ltd. (BFINVEST)
BF Investment Ltd., engaged in financial investments, has a market capitalization of ₹2,151.76 crore and a profit of ₹259.3 crore for 2024.
With a low price-to-earnings ratio of 4.96 and a price-to-book value of 0.35, it suggests potential undervaluation.
The company exhibits returns on equity and capital employed of 5.94% and 7.88%, respectively.
Mufin Green Finance Ltd. (MUFIN)
Operating within the finance and investment sector, Mufin Green Finance Ltd. has a market cap of ₹1,946.3 crore and reported a profit of ₹8.12 crore for 2024.
The company shows a high price-to-earnings ratio of 121.17 and a price-to-book value of 7.97.
It has a debt-equity ratio of 1.48, with returns on equity and capital employed of 6.4% and 6.98%, respectively.
Abans Holdings Ltd. (AHL)
Abans Holdings Ltd., an NBFC, has a market capitalization of ₹1,931.62 crore. In the fiscal year 2024, the company reported a profit after tax of ₹70.29 crore.
It exhibits a price-to-earnings ratio of 23.62 and a price-to-book value of 2.08.
The debt-equity ratio stands at 0.53, showing moderate leverage.
AHL’s return on equity is 9.64%, while its return on capital employed is 8.63%.
PNB Gilts Ltd. (PNBGILTS)
PNB Gilts Ltd. operates in the NBFC sector with a market capitalization of ₹1,926.11 crore.
It experienced a loss of ₹77.22 crore in the fiscal year 2024.
The company has a high price-to-earnings ratio of 27.75 and a price-to-book value of 1.45.
Its high debt-equity ratio of 15.27 is notable, along with negative returns on equity of -5.75% and a return on capital employed of 4.89%.
Kalyani Investment Company Ltd. (KICL)
Kalyani Investment Company Ltd., active in finance and investment, holds a market capitalization of ₹1,883.41 crore.
The company posted a profit of ₹58.08 crore for the fiscal year 2024, showing a price-to-earnings ratio of 26.89 and a price-to-book value of 0.23.
KICL has minimal debt with a debt-equity ratio of 0, demonstrating strong returns on equity of 1.04% and a return on capital employed of 1.38%.
SMC Global Securities Ltd. (SMCGLOBAL)
SMC Global Securities Ltd., operating in stock broking, boasts a market capitalization of ₹1,848.48 crore.
The company recorded a profit of ₹188.28 crore for 2024.
It has a price-to-earnings ratio of 9.87 and a price-to-book value of 1.69. The debt-equity ratio stands at 1.3, and the company shows strong returns on equity and capital employed of 18.56% and 18.35%, respectively.
Balmer Lawrie Investments Ltd. (532485)
Balmer Lawrie Investments Ltd. has a market cap of ₹1,790.32 crore, and its operations span various finance sectors.
The company reported a profit of ₹172.36 crore in 2024, with a price-to-earnings ratio of 10.66 and a price-to-book value of 1.47.
The debt-equity ratio is low at 0.08. The firm enjoys returns on equity of 15.47% and returns on capital employed of 20.69%, indicating efficient use of shareholder funds.
Nalwa Sons Investments Ltd. (NSIL)
Nalwa Sons Investments Ltd., engaged in financial investments, holds a market value of ₹1,770.79 crore.
It posted a profit of ₹92.58 crore in 2024.
The company exhibits a price-to-earnings ratio of 31.47 and a minimal price-to-book value of 0.14.
With no debt, NSIL presents returns on equity of 1.16% and returns on capital employed of 1.57%, reflecting conservative financial management and modest profitability.
In conclusion, the analysis of the top 100 finance stocks presents a diverse landscape within the finance sector, encompassing insurance, NBFCs, housing finance, stock broking, and investment management.
The variability in performance metrics like profit after tax, price-to-earnings ratios, debt-equity ratios, and returns on equity and capital employed highlights the different strategic directions and market conditions each company faces.
Several key insights emerge from this analysis:
Market Capitalization and Sector Diversity: Larger companies, particularly in insurance and broad-based financial services, tend to have higher market capitalizations, which correlate with greater stability and often higher returns on equity.
Smaller cap companies, while riskier, sometimes offer higher growth potentials, reflected in their aggressive PE ratios and robust operational metrics.
Profitability and Efficiency: Companies with high returns on equity and capital employed, such as those in asset management and specialized financial services, demonstrate effective use of capital and robust management practices.
Conversely, companies with negative earnings or lower efficiency ratios may be undergoing strategic shifts, facing competitive pressures, or dealing with adverse market conditions.
Leverage and Risk: The analysis also underlines the importance of the debt-equity ratio in assessing financial health.
Companies with higher leverage ratios face greater scrutiny during turbulent market conditions, whereas those with lower leverage are often seen as more stable but may be underutilizing growth opportunities.
Sectoral Performance Trends: Certain sectors like asset management and stock broking have shown considerable gains, attributed to increased market activity and investor engagement.
Insurance companies consistently demonstrate resilience, benefiting from regulatory environments and evolving product offerings.
Investment Considerations: Investors looking at these metrics should consider both macroeconomic factors and company-specific factors such as governance, market position, and growth strategy.
The diverse performance across the sector also suggests opportunities for portfolio diversification.
Overall, while the finance sector shows considerable promise, it also presents varied risk factors.
Investors and stakeholders must navigate these waters with detailed analysis and a balanced approach towards both high-growth potential and stability to optimize their investment decisions.
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