SECTOR: Finance - Investment
₹ 7.42 Cr.
₹ 0 Cr.
₹ 0.25 Cr.
₹ 0.09 Cr.
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Holding Value: 0.519005709 Cr.
As of June2022
Around 2% of India's total population invests in financial assets. The penetration of the mutual fund industry in India is close to 7% (Based on the number of PAN cardholders). This under penetration of the mutual fund industry offers a huge opportunity for the industry to grow. Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry. Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.
To understand the functions of the Essar Securities better, you must go through the following points:
Key Financials –
Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of the company is Rs 0.0155 Cr and the compounded growth of profit in the past 3 years is 26.0238209022282 %. The PAT margin of Essar Securities is 6.73913043478261 %.
EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Essar Securities , the EPS grew by 108.328855454057 % YOY.
Financial Ratios –
Return on Equity (ROE): The Company has a poor ROE track record. The ROE of Essar Securities is at 1.95201813487816 % for the latest year.
P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Essar Securities is worth at the current levels at Rs 5.19. The stock is trading at a current P/E ratio of 333.689264516129 and the average historical P/E for the last 5 years was 67.4966388457178.
P/B ratio can be one of the best metrics to value such companies. Currently, Essar Securities is trading at a P/B of 8.8541 . The average historical P/B for the last 5 years was 7.7126626011048. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.