IIFL Finance Limited (IIFL) AI Stock Analysis

• Market Cap: ₹229.09B
• Dividend Yield: N/A
• Average Volume (3M): 65.98K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.61
• Revenue Growth: 8.01%
• EPS Growth: -20.87%
• Country: IN
• Employees: 14,829
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 8.86
• Shares Outstanding: 425,102,100
• 10 Day Avg. Volume: 103,076
• 30 Day Avg. Volume: 65,980
• PEG Ratio: -0.46
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 1.42
• P/FCF Ratio: -2.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹525.00
• Price Target Upside: -9.30% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹584.00 ▲(0.89% Upside)

IIFL Finance Limited's stock score is primarily influenced by its strong technical momentum, despite being overbought, and its financial performance, which shows growth but also highlights significant risks related to profitability and cash flow management. The high P/E ratio suggests overvaluation, which is a concern given the lack of dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong demand for IIFL's financial services and effective market penetration, supporting long-term business expansion.

Strong Gross Profit Margin

A robust gross profit margin reflects effective cost management and pricing power, which can sustain profitability despite market fluctuations.

Stable Equity Base

A stable and growing equity base signifies financial health and resilience, providing a solid foundation for future investment and growth opportunities.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth or weather economic downturns.

Declining Profitability

Decreasing profitability margins suggest challenges in operational efficiency, which may hinder the company's ability to generate sustainable profits over time.

Negative Cash Flows

Persistent negative cash flows can strain liquidity, limiting the company's ability to fund operations and invest in growth, posing a risk to long-term financial stability.

IIFL Finance Limited Business Overview & Revenue Model

Company Description

IIFL Finance Limited provides various financial products and services in India and internationally. It offers home, personal, and gold loans; business loans, including loans against property, medium and small enterprise financing, micro finance, developer and construction finance, real estate finance, and capital market finance; and digital finance. The company also provides wealth and asset management services; and demat account, futures and options, and commodity trading services. It serves retail and corporate customers. The company was formerly known as IIFL Holdings Limited and changed its name to IIFL Finance Limited in May 2019. IIFL Finance Limited was incorporated in 1995 and is based in Mumbai, India.

How the Company Makes Money

IIFL Finance Limited generates revenue through interest income and fees associated with its diverse range of lending products. The company primarily earns money from the interest charged on home loans, gold loans, business loans, and various other secured and unsecured loan offerings. Additionally, IIFL benefits from processing fees, late payment charges, and other service-related fees. The company's partnerships with financial institutions and its widespread distribution network significantly enhance its ability to reach a broad customer base, contributing to its earnings. IIFL also leverages cross-selling opportunities through its wealth management and financial advisory services, further supplementing its revenue streams.

IIFL Finance Limited Financial Statement Overview

Summary

IIFL Finance Limited demonstrates growth in revenue and a strong gross profit margin, but faces declining profitability and operational efficiency in recent years. The balance sheet shows stability but is pressured by high leverage, posing potential financial risks. Cash flow management remains a critical area for improvement due to persistent negative cash flows. The company should focus on enhancing profitability and liquidity to sustain long-term growth.

Income Statement

IIFL Finance Limited has shown consistent revenue growth over the years, with a revenue increase from previous years. However, there is a notable drop in EBIT and EBITDA margins in the latest year compared to the prior period, indicating a decline in operational efficiency. The net profit margin also decreased, showing reduced profitability. Despite these challenges, the company maintains a strong gross profit margin.

Balance Sheet

The company has a stable equity base with a positive trend in stockholders' equity growth, which signifies financial stability. However, the high debt-to-equity ratio indicates significant leverage, which poses a risk if not managed carefully. The equity ratio remains relatively healthy, suggesting a sound balance between assets and equity.

Cash Flow

IIFL Finance Limited faces challenges with negative operating and free cash flows, indicating potential liquidity issues. While the free cash flow has improved from the previous year, the operating cash flow to net income ratio is unfavorable, suggesting cash flow management concerns. The company needs to enhance cash generation to strengthen its financial position.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	104.24B	99.25B	101.58B	79.13B	70.13B	59.53B
Gross Profit	59.92B	57.55B	62.90B	46.91B	40.22B	33.28B
EBITDA	8.17B	8.96B	27.53B	22.65B	16.58B	11.10B
Net Income	3.24B	3.79B	17.64B	15.00B	11.88B	7.60B
Balance Sheet
Total Assets	718.63B	676.44B	624.04B	514.64B	459.10B	406.67B
Cash, Cash Equivalents and Short-Term Investments	53.62B	22.91B	26.29B	58.03B	81.45B	47.96B
Total Debt	550.27B	515.33B	471.36B	408.45B	368.65B	325.83B
Total Liabilities	-139.55B	536.89B	503.48B	428.01B	394.40B	352.73B
Stockholders Equity	126.59B	124.12B	106.37B	89.92B	64.64B	53.88B
Cash Flow
Free Cash Flow	0.00	-48.42B	-61.16B	-52.02B	16.83B	-36.27B
Operating Cash Flow	0.00	-47.81B	-58.48B	-49.41B	17.84B	-35.91B
Investing Cash Flow	0.00	-11.49B	-13.56B	-27.16B	-9.96B	2.36B
Financing Cash Flow	0.00	55.26B	60.42B	53.61B	27.81B	44.30B

IIFL Finance Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 578.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IIFL, the sentiment is Positive. The current price of 578.85 is above the 20-day moving average (MA) of 547.42, above the 50-day MA of 505.08, and above the 200-day MA of 434.11, indicating a bullish trend. The MACD of 16.94 indicates Negative momentum. The RSI at 68.70 is Neutral, neither overbought nor oversold. The STOCH value of 87.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:IIFL.

IIFL Finance Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FIVESTAR	67 Neutral	₹192.26B	17.36	―	0.33%	20.44%	13.10%
IIFL	66 Neutral	₹229.09B	26.68	―	―	8.01%	-20.87%
CREDITACC	54 Neutral	₹220.37B	164.97	―	0.75%	0.75%	-90.03%
CGCL	52 Neutral	₹189.59B	24.01	―	0.11%	43.41%	109.52%
MANAPPURAM	49 Neutral	₹241.15B	53.69	―	0.88%	-3.68%	-80.12%
IFCI	45 Neutral	₹151.47B	47.22	―	―	-12.62%	175.71%

IIFL Finance Limited Corporate Events

IIFL Finance Grants 44,000 Stock Options to Employees

IIFL Finance Limited has announced the grant of 44,000 stock options to selected employees under its Employee Stock Option Scheme 2008. This move, approved by the Nomination and Remuneration Committee, is part of the company’s efforts to incentivize and retain talent, potentially impacting its operational efficiency and market positioning positively.