Edelweiss Financial Services Limited

Transcription

1 Main Research Report Edelweiss Financial Services Limited Independent Equity Research APRIL Equentis Wealth Advisory Services (P) Ltd Registered Office: 712, Raheja Chambers, Nariman Point, Mumbai India Tel: info@researchandranking.com

2 Background and Business EDELWEISS FINANCIAL SERVICES LIMITED (EDEL) Edelweiss Financial Services Ltd. (EDEL), founded in 1996 by Mr. Rashesh Shah and Mr.Venkat Ramaswamy, is one of the leading financial services companies in India with current market capitalization of Rs.148 bn. After starting out as a boutique investment banking firm, EDEL over the past two decades has transformed itself into a diversified financial services company and consequently reduced dependence on the highly volatile agency business. Currently EDEL maintains a healthy mix of credit as well as non-credit revenue stream and envisages to grow the credit business at a higher pace compared to its non-credit (agency) business. Over the past three years, loan book for the credit business has grown at a CAGR 45% to Rs.200bn (Rs.249bn 9MFY17) and in its agency business (non-credit) AUM has grown at a CAGR of 52% to currently stand at Rs.422bn (Rs.782bn in 9MFY17). Also, today EDEL is the largest ARC in India with total asset book of Rs.271bn (Rs.316bn in 9MFY17). Edelweiss Operating Structure EDEL has emerged as one of India s leading financial conglomerates having 63 subsidiaries (both direct & step down and both domestic and international) and 6 associates. The company has presence in 122 cities with 237 offices (including 9 international offices) and employs 6,227 people that service a total client base of ~1 mn. EDEL 's businesses are broadly divided into three segments viz. Credit, Non-Credit and Insurance. Business Segments Summary Businesses Credit business Non- Credit business Insurance Sub-segment Wholesale finance - Structured Collateralized Credit, Real Estate Finance, and Loan Against Shares. Retail Finance - Mortgage, Loan Against Property, Loan Against Shares, SME Finance, and Agri Finance. Distressed asset capital (ARC) - Largest Asset Reconstruction Company in India Capital Markets: One of the largest domestic institutional broking company with avg. daily volumes of Rs.52bn in FY16. (Rs.67bn as of 9MFY17) Wealth Management: Manages Asset under Advice of Rs.295 bn for Ultra HNI, HNIs and mass affluent in FY16 (Rs.537 bn as of 9MFY17) Asset Management: Manages AUM of Rs.50bn across Mutual fund (Rs.16.6 bn), PMS (Rs.22bn) and alternative assets (Rs.11.6 bn) in FY16. In Q2FY17, it acquired JP Morgan asset management scheme and Ambit Alpha fund, which increased its total AUM to Rs.172 bn as of 9MFY17. Balance Sheet Management Unit: Creates liquidity cushion through investment in high quality liquid assets with AUM of Rs.76.9bn in FY16. (Rs.73.3 bn as of 9MFY17) Agri Services & Others: One of the few organized players providing endto-end business solutions in the Agri value chain with 265 warehouse under management across 15 states and capacity of over 1.4 mn tonne and stock collateral of Rs.16.8 bn as of 9MFY17. One of the fastest growing Life Insurance companies. (Recently it received IRDA s regulatory clearance for setting up General Insurance Company in India). Revenue (Rs.bn) (FY16) NII of Rs.12.2 bn Revenue Share (%) (FY16) PAT (Rs bn) (FY16) RoE (%) (FY16) 46% Rs.3.4 bn 16.1% Rs.10.2bn 39% Rs.1.8bn 17.7% Rs.4.0 bn 15% Loss of Rs bn Total Rs.26.5 bn 100% Rs.4.1 bn 12.1% Total Revenue = Net Interest income + Income from non-credit business + Premium of life insurance business (including other income) Since its inception, EDEL has carved out a niche for itself across various business segments. Unlike other NBFCs, which are largely focused on a single product, for example, mortgage, vehicle finance or micro finance, EDEL offers diversified products and services. EDEL has adopted a strategy of building a bank like diversified entity. Prior to 2008, EDEL s diversification was largely confined to the wholesale space. However, post-2008, it diversified into retail business. In 2012, it entered the life insurance business by tying up with Tokio Life of Japan. N.A. 2

3 1. Credit Business: EDEL started credit business in 2007 by raising funds from Greater Pacific Capital and 9 years later its total AUM stands at Rs.200bn as of FY16 (Rs.249 bn as of 9MFY17), which have grown at robust pace of 45% CAGR over the past three years and at a CAGR of 63% since FY09. The existing credit book is spread across wholesale and retail finance segments, details for the same is provided below: - Particulars FY14 FY15 FY16 9MFY17 3 yr CAGR Total AUM (Rs.mn) 89, , , ,720 45% - Wholesale Finance 64, , , ,490 48% - Retail Finance 24,930 41,870 57,350 78,230 39% AUM Mix% Wholesale Finance 72% 72% 71% 69% Structured Collateralized 44% 40% 34% 29% LAS - wholesale 8% 0% 1% NA Distressed Assets Credit 4% 8% 9% 14% Real Estate 16% 24% 27% 25% Retail Finance 28% 28% 29% 31% Mortgages 23% 14% 13% 12% LAS and Others 0% 8% 8% 7% SME & Agri Financing 5% 6% 7% 12% i. Wholesale Finance segment (71% of AUM): Started in 2007, has achieved a total AUM size of Rs. 143bn in FY16, i.e. cagr growth of 48% over past three years. This division offers structured collateralized credit and customized solutions to corporates, including developer financing (real estate finance), promoter financing, trade loans and distress asset credit. Structured collateralized (short duration loans) and developers funding (3-5 years duration) constitutes 61% of the total AUM, wherein it caters to specialized or structured requirements of corporates that banks are unable offer. EDEL thereby generates high yield on this segment ranging from ~ 15-18% with high collateral cover of ~2-2.5x thereby mitigating the risk involved in lending. ii. Retail Finance segment (29% of AUM): Started in 2011 as a part of long term strategy of synergistic diversification of asset classes and customer segment. Within this segment, it provides mortgage finance (including small ticket housing finance), loan against property (LAP), loans against shares (ESOP financing, IPO financing), SME finance and rural finance. With AUM at Rs.57bn in FY16 it has grown at a 3 year CAGR of 39% CAGR. This segment operates across 52 cities and over 3,100 villages with a client base of 0.31mn. 2. Asset Reconstruction Business: Edelweiss obtained an ARC license from RBI in 2009, has scaled up this business significantly over the past two years to emerge as India s largest ARC. Total AMU at the end of FY16 was Rs.271bn, registering a growth of 72% CAGR over FY14-16 (AUM of Rs.316bn 9MFY17). It has created a track record of resolution of assets of Rs.120 bn by the end of FY16. CDPQ, the second largest pension fund in Canada is in the process of acquiring 20% stake in the ARC subsidiary for a total consideration of Rs.5 bn. It has already invested Rs.3 bn in H1FY17 and the remaining fund will be infused over the next 3-year period. So effectively, the post money valuation of its ARC subsidiary stands at Rs.25 bn. Over and above the said deal, CDPQ has also committed to infuse Rs.50 bn spread over 3-4 years. Even EDEL is likely to infuse an equivalent amount in the business over the same time period. Particulars FY14 FY15 FY16 9MFY17 2 yr CAGR ARC AUM (Rs.mn) 92, , , ,000 72% 3. Non-Credit Business: EDEL s non-credit business includes investment banking (IB), fixed income advisory, equity and commodity broking, wealth management, asset management businesses and agri & commodity warehousing services. Particulars FY14 FY15 FY16 9MFY17 2 yr CAGR Broking - Avg Daily Volumes (Rs.bn) % IB & Advisory (no of deals) Wealth Management - AUA (Rs.bn) % 3

4 Particulars FY14 FY15 FY16 9MFY17 2 yr CAGR Asset Management - AUM (Rs.bn) % Business Management Unit - Assets (Rs.bn) % Agri Service Warehouse (no's) NA *Note: - For segmental information we have taken 2 year CAGR as the financial numbers for some of the parameters prior to FY14 are unavailable. i. Capital market business - Broking, Investment Banking (IB) & Advisory: EDEL started its journey in 1996 with focus on investment banking and later diversified into institutional equities, retail broking and fixed income advisory. EDEL continues to be a leader in IB and advisory services and is one of the largest domestic institutional broking company (ranked no.1 in IPO distribution in FY16) with consistent market share of 4-5% in institutional broking and 3-4% in IB. Apart from broking, EDEL also provides various need based capital market services to its clients. ii. Wealth Management: Launched in 2008, EDEL is currently the 3 rd largest wealth management company in India in terms of assets size, after Kotak and IIFL. Its total AuA has grown at an impressive CAGR of 82% to Rs.295 bn over FY14-16 (62% 3 yr CAGR) and further increased to Rs.537 bn as of December 2016 due to rise in equity market and fresh inflows. It offers wealth advisory and third party financial product distribution to retail and HNI clients. iii. Asset Management: Started in 2007, the asset management business is mainly segmented under three sub-heads Mutual fund (MF), Portfolio Management Service (PMS) and Alternative Investment Funds (AIF). Total AUM has grown at 31% CAGR to Rs.50bn (MF Rs bn, PMS Rs.22 bn and AIF Rs.11.6bn) over the past 2 years (36% 3 yr CAGR). EDEL is expanding its asset management business through inorganic acquisitions. Recently it has acquired two schemes of JP Morgan mutual fund and Ambit Alpha Fund, which aided in AUM growth further to Rs.172 bn as of 9MFY17. iv. Balance Sheet Management Unit (BMU): The BMU manages the group liquidity in a similar way to that of the treasury of a commercial bank. It aims to generate adequate liquidity across verticals to ensure smooth repayment of maturing liabilities. The BMU assets at the end of FY16 were Rs.76.9bn, which mainly includes fixed income securities and bank fixed deposits. BMU assets form ~20-25% of the consolidated balance sheet size. v. Agri services: EDEL started agriculture commodity business in 2010 with the aim to cater to the entire value chain of agriculture financing including sourcing of commodities, providing storage facility in warehouses, besides providing finance against warehouse stock, transition, distribution and sale of produce. EDEL has emerged as the second largest warehousing company in India with 365 warehouse as of 9MFY16 present across 15 states (265 warehouses as of FY16) with aggregate total capacity of 1.4 mn tn (1.1 tn as of FY16). 4. Insurance Business: Edelweiss Tokio Life Insurance (ETLI), a JV between EDEL and Tokio Marine (Japan based life insurance company), is one of the fastest growing life insurance companies in India. Over the period FY14-16, gross premium has grown at 67 % CAGR to Rs.3.1 bn and Individual Annual Premium Equivalent (APE) has grown at 59% CAGR. It incurred a loss of Rs.1.6 bn in FY16, which is likely to continue for the next couple of years. ETLI is continuously expanding its footprints having 71 branches across 61 cities. The JV has also doubled its personal financial advisors to 15,490 in FY16 from 7,255 in FY14. Particulars FY14 FY15 FY16 9MFY17 2 yr CAGR Gross Premium (Rs.mn) 1,110 1,930 3,100 2,360 67% PAT (Rs.mn) (690) (710) (1,550) (1,340) N.A Financial advisors (no.) 7,255 10,421 15,490 NA 46% Branches (no.) 58 in 48 cities 59 in 49 cities 71 in 61 cities 81 in 61 cities *Note: - For segmental information we have taken 2 year CAGR as the financial numbers for few parameters prior to FY14 are unavailable. Management and Shareholding EDEL was co-founded in 1996 by Mr. Rashesh Shah (Co-Founder, Chairman & CEO) and Mr. Venkat Ramaswamy (Co-Founder, Executive Director). Both the promoters have more than 25 years of experience in the financial sector. Prior to EDEL, Mr. Shah has worked with ICICI, he has also previously served on executive committee of the National Stock Exchange of India, and is currently 4

5 a member of the SEBI (Securities & Exchange Board of India) committee for review of insider trading regulations. Mr. Ramaswamy has worked with Spartek Emerging Opportunity Fund and ICICI in his previous roles. EDEL Board comprises of 12 members including 5 executive/non- executive directors and 7 independent directors. Board members are highly qualified and have varied experience. Total promoter stake in Edelweiss stands at 37%. Domestic Institutions held ~0.8% stake and Foreign Institutional Investors held ~29.6% stake in the company as on 31 st December Some of the marquee investors are Fidelity Investment Fund (2.1%), Saif Holding (3.1%), Amansa Holdings (1.4%), First Carlyle Ventures (8.2%) and even Mr. Rakesh Jhunjhunwala holds 1.1% stake in the company. EDEL is currently trading at a price of Rs. 177/- (Face value Rs 1.0/-) and on an average, it has generated 4.2-xs returns (~73% CAGR) and 4.6-xs (~41% CAGR) in the past 3 and 5 years, respectively. Business evolution and management vision EDEL began operations 20 years ago by providing investment banking and portfolio advisory services and today is a diversified financial service firm with a portfolio of high quality growth businesses. During the past 20 years, it has succeeded in building a resilient and unique business model that is akin to a bank but with several advantages helping the company to grow faster versus peers, even amidst tepid market conditions. Evolution over the years: - Year Phases Inception Business Consolidation Scale and Balanced Growth Phase realignment Phase Phase Growth Phase Particulars CAGR 2004 CAGR 2008 CAGR 2012 CAGR 2016 CAGR Revenue (Rs.mn) % % 10, % 16,707 11% 53,157 34% PAT (Rs.mn) % 78 19% 2, % 1,277-17% 4,144 34% Employees (no.s) % 95 68% 1, % 3,108 18% 6,227 19% Book Value / Sh. (Rs.) % % % % % Diluted EPS (Rs.) % % % % % Inception ( ): In the year 1996, foundation of Edelweiss was laid with the belief to build a great organization and not just a good business. The founders incorporated the company with the capital of Rs.10 mn, just enough to obtain merchant banking license, however the company experienced its first setback with the change in regulation related to capital requirement for obtaining investment banking license increasing to Rs.50mn. For the want of capital, the company tweaked its business model and started providing Venture Capital and Private Equity advisory services. Business Realignment Phase ( ): The management was successful to raise its first round of capital via private equity placement that helped the company to acquire Category 1 merchant banking license. EDEL then forayed into broking business with the acquisition of Rooshnil securities. In 2001, with the bursting of internet bubble, which led to fall in capital market and economic crisis, Edelweiss s business was severely impacted. During the downturn company management invested in acquiring talent and started to explore new and innovative business lines to prepare itself for the growth when market cycle turns. Growth Phase ( ): The boom in capital market led to exhilarating expansion of the organization rapidly graduating from 1 office and 200 people to 12 office and 1,800 people. This phase was characterized by the management s ambition to grow ten times in the next ten years. Given high dependence on capital market driven activities, Company management began to explore and evaluate entry into the credit business. To meet the capital requirement to grow the credit business, EDEL raised capital twice in from private equity investors and this was followed up with its public offering in Consolidation Phase ( ): Having entered various new business streams in the previous phase, EDEL management started to chart out clearly defined goals and objectives to assess risk and investment requirement of individual business segments. Backend enterprise infrastructure support was created to match the pace of business expansion. During this period, it forayed into Asset Management and Global Wealth Management. In addition, EDEL also launched its Life Insurance business in JV with Tokio Marine. Scale& Balanced Growth Phase ( ): By broad basing the business model, the company had reduced its dependence on the agency business and created multiple strong, sustainable and secure revenue streams. The focus on seeding the new businesses and gradually scaling up the mature ones translated in an impressive growth in the Company stature and size over this period. This period is also marked by EDEL s entry into asset reconstruction business and within three years of operations it has emerged as the leading ARC in India in terms of AUM size. We believe, in the past 20 years, EDEL s counter cyclical approach and willingness to experiment while taking Calculated Risk has provided the Company with large opportunities in high growth segments for future. 5

6 Investment Thesis Favorable industry dynamics: After remaining subdued for several years, domestic economic growth is likely to pick up given Government s thrust on increasing spend on infrastructure, housing and domestic manufacturing sectors. Fund flows in the Indian capital markets, both FII and DII, bear testament to the expected revival in the economic activity in the near term. Pick up in GDP is likely to boost credit demand and the resultant rise in income levels is only expected to increase the demand for financial products/services. We believe that the Indian financial services sector is poised for strong growth and Edelweiss will be on the forefront to benefit from this uptrend. Strong business USP: From being a fledgling organization incorporated in 1996, EDEL has emerged as a formidable player in the financial services space over the last two decades. We largely credit the success to its visionary management that has strategically and methodically steered the organization to emerge as a one-stop financial services firm catering to varied financial services requirement of its clientele. a) Diversified revenue streams: From the onset, EDEL has focused on building a robust business model that can offer nonlinear growth opportunities. While focusing on rapid portfolio expansion through aggressive customer acquisition and use of technology, the Company has created a synergistic business model that offers high degree of cross-selling opportunities across key verticals of a) credit, b) non-credit and c) Insurance. This has enabled the company to consistently grow its revenue at a very high rate as well as make sustained high margins due to operational synergies. In its first 10 years of existence, EDEL s diversification was largely confined to the wholesale space. However, post-2008, it diversified into retail business. In 2012, it entered the life insurance business by tying up with Tokio Life of Japan. With the phase of diversification of the business complete in 2012, the company has shifted its focus to scaling up its existing businesses. Contribution of the agency business has fallen to 39% in revenue in FY16 from 73% in FY11, we view this as a big positive compared to its peers that have high concentration towards non-credit/agency operations, which are by nature more volatile. The credit and insurance businesses now form 61% of consolidated revenues (27% FY11). b) Multiple growth levers: We believe that all the segments in which EDEL is present, holds immense growth potential. Historically, EDEL s consolidated revenue has grown at an impressive pace of 24% over the past five years and its net profit growth was 12% CAGR in the same period (FY12-16). Notably, lower growth in PAT was due to rising investments in new businesses and also due to losses incurred in the life insurance business, which it ventured into only in the year We forecast overall revenue of the Company to grow at 30-35% CAGR over FY17-FY22, supported by strong growth both in the credit and non-credit businesses. Also, we expect the insurance business to break even at net profit level by FY22. Further, turnaround of insurance operations coupled with high operating leverage across other businesses is also likely to result in the profitability to improve at consolidated level. Credit business (excl. ARC): Loan book growth expected to grow by 25% CAGR over FY17 to FY22. NII from the business is also likely to mirror the loan book growth at 25-26% CAGR. Asset reconstruction: EDEL has established itself as the largest ARC in India today, with assets under management of Rs.316bn in 9MFY17 and is set to grow its AUM at a CAGR of 20% over the next five years in view of rising NPA issues in the banking system. Non-credit: Flourishing economy and improving capital market activities is expected to support non-credit business and we expect EDEL s combined AUM (wealth mgt., asset mgt. and BMU) to grow at a CAGR of 23% over FY17 to FY22, with contribution from the segment declining to 26% in FY22 compared to 39% in FY16. Life Insurance: India is world s largest life insurance market in the world in terms of the total policies outstanding, which is growing at 12-15% p.a. However, per capita insurance density in India is still very low compared to the global standards, indicating significant under penetration. We therefore expect the incumbents like EDEL to benefit immensely as penetration of insurance as a financial planning tool increases. As stated by the Company management, this business is expected to break even at the net level by FY22, compared to losses of Rs.1.04bn reported in FY16 (11.3% of revenue in FY16). Aspiration to be a bank: Management is keen on winning banking license and has even applied for it in the past. Gaining banking licenses is an uphill task and in the past one decade, RBI has issued only two new banking licenses. However, EDEL is already operating like a quasi-bank, where despite the disadvantages on the liability side, it is well diversified into credit, non-credit and insurance businesses. Winning banking license remains a strong upside trigger in future. 6

7 Strong balance sheet to aid growth: a) Comfortable capital position: According to regulatory requirements, NBFCs are required to maintain minimum capital adequacy ratio (CAR) of 15%. With CAR ratio at 17.9% as of FY16 (CAR of 17.85% in 9MFY17), EDEL is well funded to sustain high growth for the next two-three years. Going forward, with the sustained high growth in its assets, we expect that EDEL s CAR for the credit business may drop to 15% level by FY We believe that EDEL may not resort to equity dilute for raising fresh funds as it would have the option of partly selling its stake in various subsidiaries in order to meet growth capital requirements. Key subsidiaries where it may reduce its holding includes its housing and commodities financing subsidiaries. Notably, in its insurance business, the Company has recently sold part of its stake to CDPQ, which now holds 49% stake in the subsidiary. CDPQ has further committed to infuse more funds in the subsidiary to meet capital requirement in future. We expect EDEL management to adopt this strategy in other verticals as well. b) Stable asset quality despite stress in the environment: Despite the stress environment seen in the last couple of years, asset quality of EDEL has held up well over the years. this can be attributed to implementation of stringent underwriting and risk management practices. For FY16, Gross NPA was 1.4% and Net NPA was 0.47% and its provision coverage ratio was 67%, which is better than the industry average. EDEL has evolved a four-tier risk management approach including reviews at the board level committee, besides carrying out independent risk assessment at individual business level. Further, its loan-diversification strategy lowers the concentration risk. Also, EDEL s high collateral cover at ~ xs of loans in the wholesale book has ensured better recoverability of bad loans. Going forward, we do not expect significant asset quality deterioration and despite high asset growth, gross NPAs are likely to remain range bound. At the same time, we expect provision coverage ratios to be maintained around ~65-70%. Visibility of asset growth and improvement in return parameters very high: Majority of the businesses that EDEL ventured into post 2008, as part of its diversification strategy, are now attaining a critical mass and these businesses viz. retail lending, ARC, Insurance, housing finance, SME lending, etc., are likely to scale up significantly over the next few years, adding to the visibility on asset growth front. With the growth in asset, segmental revenues are likely to grow at a healthy pace and benefits of economies of scale is likely to be reflected in profitability improvement as well, providing high visibility on ROE expansion. Consolidated revenue is expected to grow at a CAGR of ~30% over FY16 to FY22, this along with operating leverage across segments and breakeven of insurance business is likely to result in the net profits to grow at 35% plus over the same time period. PAT margins in this period is projected to improve from 15.6% in FY16 to 18.0% by FY22. Improvement in profitability is expected to translate into a higher return ratios, which is expected to see a xs jump from 12% reported in FY16 to 20% plus by FY22. Valuation multiple expansion and value unlocking potential: a) Listing of subsidiaries to unlock value: EDEL has housed its businesses under separate subsidiaries headed by focused management teams. Baring agency business, most other segments are currently in different stages of maturity and growth. We expect the group to list some of its subsidiaries in the future and thereby unlock value for the shareholders. The same would act as a trigger for the stock price, as and when it happens. b) Rerating Potential- We expect RoA and RoE of the company to improve further supported by strong growth in earnings on the back of shift in loan mix towards high yield retail credit, high revenue growth from non-credit business, maturing ARC business, reduction in loss from the insurance business and productivity improvement due to operating leverage. We expect RoE to almost double from 12.1% in FY16 to 20% plus by FY22E and similarly, even RoA is likely to more than double from 1.2% in FY16 to 2.5% in FY22E. This in our view should trigger multiple expansion for the stock. EDEL is currently trading at a Price to Book multiple of xs on FY17 estimated BV of Rs.62 and PE of xs on FY17 estimated EPS of Rs.8.0. Historically, EDEL has been valued on par with other financial services companies like JMFL and IIFL, but it traded at a significant discount to other NBFCs (like Capital First and Bajaj Fin BAF). However, given the superior business mix compared to its peers and quasi bank like business operations of the Company, one may expect this discount to reduce, thus presenting a strong case for valuation upside for EDEL. 7

8 Key assumptions for our forecast 1. Credit Business assumptions Particulars FY16 FY17E FY18E FY19E FY20E FY21E FY22E 5 yr CAGR / Avg Capital Employed / Loans (Rs.mn) 200, , , , , , ,880 25% Loan growth (incl Distress asset credit) 33% 33% 30% 27% 25% 20% 21% NII (Rs. Mn) 12,223 16,294 21,350 27,359 34,420 42,123 50,823 26% NIM's 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% Avg.7.0% Cost to Income Ratio 44% 39% 40% 40% 40% 40% 40% Avg.40.0% Credit Cost % 1.0% 1.2% 1.3% 1.3% 1.4% 1.3% 1.3% Avg.1.3% PAT (Rs.mn) 3,370 4,515 5,859 7,535 9,961 12,263 14,783 27% PAT growth 47% 34% 30% 29% 32% 23% 21% Parameter Capital Employed / Loans (incl. Distress asset capital) CAGR NII CAGR NIMs Cost to Income ratio (C/I) - Avg Credit cost Avg PAT - CAGR Commentary & Outlook - Over past three years, capital employed (incl. distress asset credit) in the credit business has grown at a CAGR of 45% to Rs. 200bn, driven by 48% CAGR growth in the wholesale lending AUM (incl. distress assets) and retail lending book growth of 39% during the same period. - Currently, EDEL s credit book is skewed towards wholesale lending (incl. distress credit) contributing 71%, while retail lending contributes the remaining 29%. - We expect total capital employed to grow 4-xs (over FY16) to Rs.795bn over the next 5-year period, translating in a CAGR of 25% over FY17-22E. Growth to be supported by higher growth in retail as well as ARC loan book. - Wholesale credit: We expect wholesale credit to grow at slower pace of 20% CAGR to Rs.364 bn over the next 5 years (FY17-22E). Contribution from this segment to overall capital employed is likely to decline from 62% in FY16 to ~46% in FY22E. - Retail Credit: We forecast retail credit to grow at 30% CAGR to Rs.309 bn over FY17-22E driven by affordable housing finance, SME and agriculture financing. Contribution from retail credit is expected to be increase to 39% of total capital employed. EDEL has invested in new products, which have registered high growth on low base over past 3 years, we expect strong growth to continue as the business matures and investment yields results. - Distress Asset credit: Capital employed in ARC business was Rs.18.9 bn as of FY16 (Rs.35.4 bn as of 9MFY17), accounting for 9% of capital employed. We expect distress asset credit to grow at 28% CAGR to Rs.123bn over FY17-22E and form 15% of the total capital employed. - With the loan growth of 25% CAGR over FY17-22E, along with stable NIMs, we project NII to grow at CAGR of 26% over FY17E-22E. - NIMs are expected to remain stable at 7.0%. Shift towards low yielding retail loans is likely to be countered by the lower cost of funds and increasing share of distress asset in total loan book. - C/I is likely to fall to 40% by end of projection period compared to 44% reported in FY16. - EDEL leads the peer set in terms of superior asset quality. We expect credit cost to increase marginally to 1.3% in FY22E from 1.0% in FY16 due to shift in loan mix towards retail credit while maintaining provision cover at 65%. - Overall, we project net profits from the credit business to register 27% CAGR over the next 5 years (FY17-22E) aided by strong growth in loans, stable NIMs and improving operating efficiency. 8

9 2. Asset Reconstruction Particulars FY16 FY17E FY18E FY19E FY20E FY21E FY22E 5 yr CAGR / Avg AUM (Rs.mn) 271, , , , , , ,469 20% Capital employed (Rs.mn) 18,960 36,139 61,139 86, , , ,530 28% Capital employed growth 54.6% 90.6% 69.2% 40.9% 29.0% 5.0% 5.0% Income (Rs.mn) 3,700 6,554 9,387 12,221 15,054 15,684 16,345 20% Income growth 81.4% 77.1% 43.2% 30.2% 23.2% 4.2% 4.2% Cost to income ratio 81.4% 80.0% 80.0% 80.0% 80.0% 70.0% 70.0% Avg. 76.0% PAT (Rs.mn) ,220 1,589 1,957 3,058 3,187 30% PAT growth 32% 89% 43% 30% 23% 56% 4% Parameter AUM - CAGR Capital Employed - CAGR Income growth C/I ratio PAT growth Commentary & Outlook - Given the wide spread problem of growing banking loan NPAs, EDEL s ARC AUM has increased at a CAGR of 72% over the period FY14-16 to Rs.271 bn. This is expected to grow at CAGR of 20% by FY22E to Rs.961 bn. - CDPQ has targeted investment of Rs.50 bn over four year in the ARC business. Through this investment CDPQ will also be acquiring a 20% equity stake in Edelweiss Asset Reconstruction Company (EARC). - Also, EDEL is expected to invest ~Rs bn per annum over the next 3-4 years. Overall therefore total capital employed is estimated to grow by Rs bn per annum to Rs122bn by FY22. - We thus expect capital employed to increase at 28% CAGR over FY17-22E. - ARC charges 1.4% as annual management fee of AUM. We expect Fee income to grow in line with AUM growth of 20%. - Also, any recovery over and above the purchase value of assets will entail payment of bonus to EDEL but it is impossible to ascertain any gains on account of performance bonus at this stage. - We expect C/I ratio to reduce going forward with avg. C/I at 76% aided by operating leverage and resolution of assets. - Overall, we expect PAT to grow at 30% CAGR over the next 5 years aided by stable fee income and lower C/I ratio. 3. Non-Credit Business assumptions Particulars FY16 FY17E FY18E FY19E FY20E FY21E FY22E 5 yr CAGR / Avg Total AUM (Rs.mn) 421, ,750 1,095,382 1,377,617 1,669,519 2,024,117 2,454,779 23% AUM growth 56% 109% 25% 26% 21% 21% 21% - Wealth Management AUA (Rs.mn) 295, , , ,922 1,133,906 1,360,688 1,632,825 22% - Asset Management AUM (Rs.mn) 50, , , , , , ,156 27% - BMU Assets (Rs.mn) 76,930 75,000 79,444 94, , , ,797 17% Revenue (Rs.mn) 11,070 13,636 16,431 20,664 25,043 30,362 36,822 22% Revenue growth -1% 23% 20% 26% 21% 21% 21% Cost to Income Ratio 76.0% 74.0% 73.0% 73.0% 70.0% 70.0% 70.0% Avg. 71.2% PAT (Rs.mn) 1,820 2,340 2,884 3,627 4,883 5,921 7,180 25% PAT growth 20% 29% 23% 26% 35% 21% 21% PAT Margins 16.4% 17.2% 17.6% 17.6% 19.5% 19.5% 19.5% Avg.18.7% RoE 17.7% 19.0% 19.4% 20.0% 21.8% 21.3% 20.9% Avg.20.7% 9

10 Parameter AUM - CAGR (wealth mgt, asset mgt and BMU assets) Revenue - CAGR C/I ratio PAT CAGR PAT Margins(Avg) RoE - Avg Commentary & Outlook - We expect EDEL s total AUM in non-credit business to grow at 23% CAGR to Rs. 2,455 bn over the next 5 years driven by: Favorable market conditions to help sustain inflows Increasing distribution network Strong branding of its franchisee Edelweiss. Aggressive spend towards building the franchisee. a) Wealth Management EDEL has witnessed wealth management asset under advice (AuA) growing at an impressive pace of 82% CAGR over past 2 years (62% 3 yr CAGR) to Rs.295 bn (Rs.537 bn as of Q3FY17). We expect AUA to grow at a CAGR of 22% over the period FY17-22E to Rs. 1,633 bn keeping with its aspirations of fast closing the gap with its peers. b) Asset Management - EDEL s mutual fund business is set to benefit with the growing brand value. Its AUM from asset management has grown at a CAGR of 31% to Rs.50 bn over FY14-16 (36% CAGR 3-yr). Recently EDEL expanded its asset management business through acquisition of schemes of JP Morgan and Ambit Alpha Fund and thus in Q3FY17 itself the AUM has jumped to Rs.200bn. We forecast AUM from this business to grow at CAGR of 27% to Rs.660 bn crore over FY17-22E. c) BMU Assets: BMU has grown at 61% CAGR over FY We assume it to grow at 17% CAGR over next five years, averaging 15% of the consolidated assets. - Revenues have grown at a CAGR of 11% over FY14-16 (19.5% 3-yr CAGR). With the buoyancy in capital market activities, acquisition of fund business from peers and strong inflow in mutual fund business post demonetization and improvement in yields, we expect revenue to grow at a faster pace of 22% CAGR over FY17-22E to Rs.36.8 bn. - Currently, the cost to income ratio stands at ~76% as of FY16 as EDEL has invested heavily in technology and manpower. We believe that the company is at an inflection point, given the expected aggressive expansion of its AUM over the next five years we forecast C/I ratio to improve by ~600bps to be at 70% by FY22. - With the robust growth in AUM and rising operating leverage, we expect PAT to grow at strong pace of 25% CAGR over next five years and PAT margins is likely to improve from 16.4% in FY16 to 19.5% by FY22, with avg 5-year PAT margins at 18.7%. - With the improvement in profitability and less capital required for non-credit business, we expect RoE to improve over the next 5 years, with avg RoE at 20.7% over FY17-22E. 4. Insurance Business assumptions Parameter Premiums PAT Commentary & Outlook - Total premiums of the Edelweiss Tokyo Life Insurance (ETLIC) business has grown by 61% in FY16 to Rs.3.1 bn and 67% CAGR over past 2 years (49% YoY growth in 9MFY17). Going forward, the management expects total premiums to grow at CAGR of 40-50% over next few years. - ETLIC is continuously expanding its footprints across agency and in partnership with direct channels. We expect Premium income to grow at 50% CAGR over FY17E-22E. - ETLIC, which commenced operations in 2012 reported loses of Rs.1.55 bn in FY16. - The JV is expected to continue to be in investment phase and is expected to breakeven in next 5-6 years of operations. 10

11 5. Consolidated Performance Particulars Historical Forecast Comments AUM Mix (Rs.mn) FY16** FY22E Credit Business - Capital Employed / Loans (Rs.mn) 200, ,880 - We expect total capital employed (incl distress asset credit) to grow 4xs over FY16 to Rs.795 bn translating into 25% CAGR over 5-yr CAGR- Capital Employed growth (%) 50% 25% the next 5-year period with the shift in loan mix towards retail and 3-yr CAGR- Capital Employed growth (%) 45% 27% distressed asset credit. Non - Credit Business - AUM (Rs.mn) 421,930 2,454,779 - We expect non-credit business AUM to grow at 23% CAGR to Rs. 2,455 bn over next 5 years driven by strong growth both in Asset 5-yr CAGR- AUM growth (%) NA 23% Management and Wealth Management units supported by strong 3-yr CAGR- AUM growth (%) 52.1% 24% fund flows. Revenue Mix (Rs.mn) Credit Business (NII) 12,223 67,168 - We Expect revenues to grow at a CAGR of 29% to Rs.139bn led by Non - Credit Business 10,246 35,594 o Strong 46% CAGR in Insurance business revenue, Insurance 3,002 34,192 o Robust loan book growth and stable NIMs leading to 26% Total 26, ,348 CAGR in NII from the credit business, o Buoyancy and rapid AUM growth in capital market business 5-yr CAGR- Revenue growth (%) 24% 29% resulting in 22% CAGR growth in non-credit revenues. 3-yr CAGR- Revenue growth (%) 35% 33% Cost to Income C/I Ratio 78.4% 72.2% - We expect operating cost to moderate going forward with the technological initiatives undertaken by the company and better 5-yr Avg - C/I ratio (%) 76.1% 73.8% cost management resulting into operating leverage. 3-yr Avg - C/I ratio (%) 76.1% 74.6% PAT PAT (Rs.mn) 4,144 25,151 - We expect PAT to grow by 30% CAGR over next five years to Rs.25.1bn driven by higher contribution from the credit & ARC 5-yr CAGR- PAT growth (%) 12.2% 30.4% businesses, higher fee income from non-credit business, 3-yr CAGR- PAT growth (%) 32.4% 32.6% operating leverage and reduction in insurance business losses. RoE Consolidated RoE 12.1% 20.9% - Rising profitability, lower cost to income ratio, stable credit cost and reduction in losses in insurance business we expect a marked 5-yr Avg- RoE(%) 8.7% 18.8% improvement in return parameters for the company. 3-yr Avg- RoE(%) 10.4% 17.5% - We expect consolidated RoE to increase to ~21% by FY22. Credit Business 16.1% 20.3% - We expect RoE of credit business to improve on back of stable NIMs, lower operating cost, and higher fee income from ARC 5-yr Avg- RoE (%) NA 19.8% business. 3-yr Avg- RoE (%) 15.1% 19.2% Non - Credit Business 17.7% 20.9% - With the improvement in profitability and less capital required for non-credit business, we expect RoE to improve over next 5 years. 5-yr Avg- RoE (%) NA 20.7% 3-yr Avg- RoE (%) 14.2% 20.4% RoA Consolidated 1.2% 2.5% - We expect consolidated RoAs to double to 2.5% from 1.2% in FY16. 5-yr Avg- RoE (%) 1.2% 2.2% 3-yr Avg- RoE (%) 1.3% 2.0% Capital Adequacy CAR (%) 17.9% 15.7% - As on FY16, the CAR of EDEL stood at 17.9%. While the CAR is 5-yr Avg- CAR (%) NA 16.1% sufficient to cater to its future growth, we expect EDEL may need 3-yr Avg- CAR (%) 22.4% 16.3% growth capital by FY20/FY21. Historical 3-yr period FY13-FY16 for cagr calculation; FY14-FY16 for average calculation Historical 5-yr period FY11-FY16 for cagr calculation; FY12-FY16 for average calculation Forecast 3-yr period FY17-FY20 for cagr calculation; FY17-FY19 for average calculation Forecast 5-yr period FY17-FY22 for cagr calculation; FY18-FY22 for average calculation ** FY16 Numbers are not directly comparable. Earlier as Edelweiss ARC was an associate, profits were reported as profit from associates. Since Q3FY17, EARC would be reported as subsidiary, hence profits from ARC would be reported in income statement and will be part of credit business. 11

12 Valuation and Recommendation We believe Edelweiss is one of its kind financial services firms in India today. Set up in in early 1996, with its roots in the capital markets, EDEL has since branched out into a well-diversified financial services company. EDEL s transition from a full-fledged agency business to a quasi-bank like NBFC, can be largely credited to the strategic focus of the promoters of the Company. We believe that a healthy mix of credit and non-credit businesses is what sets EDEL apart in the financial services space. Where credit business provides steady high growth opportunities, its non-credit business brings in scalable, asset light and highly profitable revenue streams. EDEL with its multi-line business model, pan India reach, strong brand equity, healthy balance sheet and high asset quality, stands to benefit immensely as economic and consequently capital market activity picks up in coming years. Further, EDEL s aspirations of transitioning into a full-fledged bank will give it access to lower cost funds to fuel its growth and can be a significant upside trigger in foreseeable future. We forecast EDEL s PAT to grow at a healthy rate of 33-35% CAGR over FY After considering average dividend payout of 35%p.a., we project its book value to increase from Rs.45 per share to Rs.158 per share in FY22. Valuing EDEL on sum-of-the-parts (SOTP) basis, we arrive at the target price range of Rs over the next 4-5 years, providing an upside potential of xs (30-35%CAGR) over the current market price. Hence, we strongly recommend investors to BUY Edelweiss at current levels as a potential wealth creator over the next 4-5-year time frame. Sum-Of-The-Parts Valuation Valuations FY17E FY18E FY19E FY20E FY21E FY22E 1. Credit Book (incl ARC) Diluted Book Value (Rs) Target P/BV multiple assumption Per share value (Rs.) Non-Fund Based Business Diluted EPS (Rs.) Target P/E multiple assumption Per share value (Rs.) Insurance Business Q3FY17 BV Target P/BV multiple assumption Per share value (Rs.) Target Price (Rs) CMP (Rs) 177 Potential Upside (%) 86% 125% 179% 243% 317% The above table captures the value of individual business segments based on their organic growth outlook. However, we feel that there are several triggers await the counter that can lead to much higher stock price appreciation well within the forecast period itself. Some of these developments include: - a) Receipt of banking license b) Faster ramp up of life insurance subsidiary c) Demerger of credit business from non-credit business d) Listing of individual subsidiaries We will be closely monitoring Edelweiss for any such event and would communicate to our clients our assessment and revised target prices, when necessary. The table below details the sensitivity of FY22 target price to different levels of Book Value estimates and P/BV multiples. FY-22 BV sensitivity -15% -10% -5% 0% 5% 10% 15% FY-22 BV est. (Rs./-) BV 3.0xs BV 3.5xs BV 4.0xs BV 4.5xs BV 5.0xs BV 5.5xs ,004 BV 6.0xs ,000 1,048 1,096 Note shaded cells indicate fair value of equity range. 12

13 Our 5yr. Target prices are rolling estimates. These factor in changes in accounting period, estimates v/s actual performance and changes in current valuation multiples periodically. Accordingly, our 5yr target prices on the dashboard may be different from the ones published at the time of Initiating coverage. Risks to the recommendation Inherent volatility in the businesses due to linkages with the equity market Lending business subject to intense competition Challenges in scaling up new business Increase in competitive intensity impacting yields and NIMs Any negative surprises on asset quality would cause multiple contraction Any adverse regulatory guidelines Integration challenges from the inorganic route Ability to retain key management personnel Higher than expected equity dilution 13

14 Peer Set Analysis In this section, we have analyzed leading diversified financial services companies, which are present both in the credit as well as non-credit businesses, namely Edelweiss, JM Financials, IIFL Holdings and Motilal Oswal. Provided below is their performance summary, where we have compared the peers on various growth, composition, business size, asset quality and valuation parameters. We have also ranked all the peers to reflect the order of preference for the purpose of investment. We have a very positive outlook on the financial services space in India in view of huge untapped and highly underpenetrated market. Also, we believe that current Government s thrust on financial inclusion has added to the growth prospects of the sector and will provide access to the huge underserviced and unreached population. In such a scenario, players that lead in terms of technological investments, scale, reach, brand equity, balance sheets health and asset quality are likely to be the frontrunners, benefitting from the impeding growth in the sector. Summary - We rank EDEL highest in the peer set due to- superior business mix, better franchise on credit as well as non-credit side, multiple levers for capturing the growth momentum across business segments and value unlocking potential due to demerger or listing possibility of its various subsidiaries/verticals. Also, given management s aspiration of gaining a banking license, it can be a very strong upside trigger for the stock in the medium term. The pecking order highlighting investment worthiness of the peers in the financial services space is as follows: - Peer Set Performance Comparison -Summary Particulars EDEL JMFL IIFL MOFSL ** Order of preference and remarks Revenue growth and mix Besides growth in CAGR terms, we have ranked these companies based on the robustness of their revenue mix as Revenue - FY16 (Rs mn) 26,480 11,726 23,863 9,058 well. Companies with a better mix between credit and non-credit business segments have been ranked higher. 3 yr CAGR 35% 21% 10% 25% Rank 1: - EDEL s revenue in the past has grown at a higher pace of 35% CAGR led by its diversified revenue mix. EDEL Revenue Mix (%) derives 46% of revenue from credit business, 39% from non-credit business and 15% from life insurance. Credit 46% 48% 48% 12% Rank 2: - JMFL reported 21% revenue CAGR with credit business contributing 48% to total revenues and non-credit business Non-Credit 39% 52% 52% 88% 52%. Insurance 15% n.a. n.a. n.a. Rank 3: - IIFL registered 10% revenue CAGR over the past 3 years, with 2 nd largest asset management AUM in the industry. Share of revenue from credit business is at 48%, while non-credit business forms 52% of the total revenue. Rank 4: - MOFSL has registered high revenue CAGR of 25% over the past 3 years, but it has very high (88%) revenue contribution coming from the non-credit business. AUM - FY16 (Rs.mn) Credit 200,140 72, ,695 20,900 Companies ranked not just based on growth but also on size and mix of the credit book / non-credit AUM 3 yr CAGR 45% 34% 24% NA Rank 1: - EDEL has registered highest credit business loan growth CAGR of 45% over the past 3 years with well-diversified Non-Credit (excl. BMU) 421, , , ,400 book distributed between wholesale, retail and distress asset credit. Loan book was Rs.200 bn as of FY16, highest compared to the peer set. Also, AUM of its agency (non-credit) business has registered highest growth of 52% fto be at Rs422bn in FY16. 3 yr CAGR 52% 30% 28% 75% Rank 2: - IIFL s credit business loan book is well-diversified, with book growing at 24% CAGR over the past three years and its non-credit business is the largest amongst its peers at Rs.794bn, which has grown at a 3-year CAGR of 28%. Rank 3: - JMFL s credit business AUM reported 3-yr CAGR of 34% with loan book concentration towards wholesale credit (real estate) and its non-credit business has grown at 30% CAGR in the past three years. Rank 4: - MOFSL started credit business (affordable housing finance) only in 2014 and has loan book size of Rs.20.9 bn as of FY16. The non-credit business has registered AUM CAGR of 75% over the past 2 years. 14

15 Particulars EDEL JMFL IIFL MOFSL ** Order of preference and remarks Net profitability and mix PAT - FY16 (Rs.mn) 4,144 4,005 5,112 1,691 Ranked based on growth and contribution mix from and within credit business 3 yr CAGR 32% 30% 23% n.a. Rank 1: - EDEL has reported 32% PAT CAGR over past 3 years even with losses reported in the insurance business. PAT margin % FY % 34.2% 21.4% 18.4% Rank 2: - IIFL reported 23% PAT CAGR within which credit business contributing 61%. PAT Mix (%) FY16 Rank 3: - JMFL reported 30% PAT CAGR over the past 3 years, with credit business contributing 79% to total PAT. Its credit Credit 81% 79% 61% 24% business has higher NIMs compared to EDEL and IIFL due to concentration towards wholesale book (Real estate) Non-Credit 44% 21% 39% 73% Rank 4: - MOFSL reported 16% YoY PAT growth with higher contribution from non-credit business. Credit business has low Insurance -25% NIMs as it is present in secured affordable low cost housing segment. Asset Quality - FY16 GNPA (%) 1.4% 0.3% 1.4% 0.2% Rank 1: - JMFL has robust asset quality with GNPA of only 0.3% in FY16 as it has higher exposure towards wholesale collateralized loans backed by cash flows and strong collaterals. NNPA (%) 0.47% NA 0.5% NA Rank 2: - EDEL reported stable asset quality with GNPA of 1.4% as of FY16 despite rising share of retail loans aided by strong underwriting skills. Rank 3: - IIFL reported strong asset quality metrics with GNPA at 1.4% as of FY16 despite retail focus. Rank 4: - MOFSL which started lending operations in 2014 reported strong asset quality with GNPA at 0.2% of loans. However, the book has not seasoned. Return parameters RoA - FY16 1.2% 4.1% 2.4% 4.0% Rank 1: - JMFL despite having high RoA of 4.1 %( aided by better NIMs and low C/I) in FY16 reported subdued RoE of 15.3% 3 yr Avg 1.3% 4.0% 2.4% 3.8% due to low leverage. 5 yr Avg 1.2% 3.4% 2.2% 4.6% Rank 2: - MOFSL has reported 4% RoA in FY16 due to low capital requirement for the non-credit business and RoE of 12.4% RoE - FY % 15.3% 17.3% 12.4% is low due to relatively subdued PAT growth in the past. 3 yr Avg 10.4% 13.1% 16.6% 9.1% Rank 3: - IIFL reported RoA of 2.4% and RoE of 17.3% in FY16, reflecting better leverage. 5 yr Avg 8.7% 11.0% 14.4% 9.2% Rank 4: - EDEL has low RoE sad RoA compared to peers due to losses in insurance business. However, ex-insurance RoA and RoE for FY16 stands at 1.8% and 18.6%, respectively. Valuation CMP (Rs) EPS - FY16 (Rs) TTM EPS (Rs) BV - FY16 (Rs) BV Q3FY17 (Rs) P/E Multiple Current Price / TTM EPS (xs) P/E-FY16 (xs) P/E- 3yr Avg (xs) P/BV Multiple Current Price / Q3FY17 BV - (xs) P/BV-FY16 (xs) P/BV- 3yr Avg (xs) ** MOFSL 2 yr CAGR Rank 1: - EDEL s multiples have recently expanded in line with its latest quarter performance. We expect multiples to expand further supported by best business mix and expansion in return parameters. Rank 2: - IIFL has the best business mix after EDEL and its multiples are likely to expand with the growth in profits in coming years on the back of expected improvement in market conditions. Rank 3: - MOFSL in terms of multiples looks expensive but the growth that it can achieve in the non-credit business is humungous given the franchise it has built that will enable the company to grow at a very rapid pace with the growth in capital market activity in coming years. Rank 4: - JMFL is the weakest in the pack, due to high concentration towards real estate financing on the credit side, also, we are of the opinion that MOFSL, EDEL and IIFL have a better franchise in non-credit operations compared to JMFL. 15

16 I. Background and Consolidated Past Financial Performance Particulars Edelweiss JM Financials IIF Holdings Motilal Oswal Fin Services Consolidated Financials (as Reported) FY16 FY15 YoY gr. FY16 FY15 YoY gr. FY16 FY15 YoY gr. FY16 FY15 YoY gr. Total Income Rs mn 52,539 38,798 35% 16,728 13,924 20% 39,837 35,510 12% 10,549 7, % C/I ratio (%) 37.8% 38.2% 27.5% 32.2% 35.3% 37.9% 61.3% 67.0% EBITDA Rs mn 32,673 23,991 36% 12,134 9,445 28% 25,758 22,042 17% 4,086 2, % EBITDA Margins (%) 62.2% 61.8% 72.5% 67.8% 64.7% 62.1% 38.7% 33.0% PBT Rs mn 5,712 5,099 12% 6,929 5,169 34% 8,423 7,239 16% 2,246 1, % PAT Rs mn 4,144 3,287 26% 4,005 3,305 21% 5,112 4,473 14% 1,691 1, % PAT Margins (%) 7.9% 8.5% 23.9% 23.7% 12.8% 12.6% 16.0% 18.7% RoE(%) 12.1% 10.9% 15.3% 14.3% 17.3% 19.0% 12.4% 11.7% Background: EDEL, promoted by Mr. Background: JMFL, promoted by Mr. Background: IIFL, founded by Mr.Nirmal Background: MOFSL is founded by Mr. Rashesh Shah and Mr. Venkat Nimesh Kampani, is a leading player in the Jain, is a diversified player present across Motilal Oswal and Mr. Ramdeo Agarwal. Ramaswamy is a diversified financial capital markets with a strong presence in capital markets, investment banking, MOFSL is diversifying its business model service company having presence across investment banking, wealth management wealth mgt and lending and financing from pure play capital market player spectrum of services ranging from stock and asset management along with its verticals. In 2015, Fairfax group promoted providing equity broking, wealth broking, asset management, NBFC NBFC operations spread across by Mr. Prem Watsa acquired 36% stake management and 3 rd party distribution to operations, asset reconstruction and life commercial real estate lending and capital into the company. In its key NBFC also include affordable housing finance as insurance businesses. It is largest ARC in market activities. It also has an asset business, CDC UK govt fund holds 15% a vertical. India with AUM of Rs.310 bn as of reconstruction company with AUM of stake and in wealth management arm 9MFY17. Rs.113 bn. General Atlantic holds 24%. Business and Background Consolidated Financial Performance: Consolidated income has grown by 35% over past 3 yrs to Rs.26.5 bn Credit business Fund Based Activity (46% of total income and 81% of profits in FY16), have grown at 43% CAGR and revenue share have improved from 25% in FY11. Non-credit business (40% of total income and 39% of profits) has grown at a slower pace of 24% 3-yr CAGR. Life Insurance business constitutes 15% of revenue and has negative contribution to PAT and RoE. Cost to Income (C/I) Ratio: C/I have been avg at 76% over past 3 years. PBT and PAT both have grown at 32%, respectively. PBT and PAT margins are lower due to loss from Insurance business. Consolidated Financial Performance: Consolidated total income have grown by 21% CAGR over past 3yr-to Rs.11.7bn Credit business Fund Based Activity (48% of total income and 80% of profits in FY16) have grown at 48% CAGR and revenue share from credit business have improved by 16% over past 3 years. Non-credit business (52% of income and 20% of profits) have grown at slower pace of 7% CAGR over past 3 years, share in total revenue have declined from 68% in FY14 to 52% in FY16. Cost to Income (C/I) Ratio: C/I have declined from 60% in FY14 to 41% in FY16 aided by higher share of fund based activity. PBT Margin improved from 40% in FY14 to 60% in FY Consolidated Financial Performance: Consolidated income has grown by 10% CAGR over past 3 years to Rs.23.9bn Credit business Fund Based Activity (48% of total revenue) have grown at 10.4%. Non-credit business (52% of total revenue) have grown at 10%. Cost to Income (C/I) Ratio: C/I have declined by 11% over past 3 years to 65%. Cost to income is high compared to peers due to higher cost in non-fund based activities. PBT Margin improved by 12% over past 3 years to 35% in FY16 PAT have grown at 23% CAGR and margins have improved by 5% over past 3 years to 21.5%. RoE have improved by 4% to 17.3% in FY16 from 13.5% in FY14. Avg RoE at 16.6%. Consolidated Financial Performance: Consolidated Total income have grown by 25% CAGR over past 3-years to Rs.9bn. Till FY15 Non-credit business contributed 97% of income, which has come down to 88% in FY16 with the expansion into housing finance business. Cost to Income (C/I) Ratio: avg C/I have been at 70% in line with peers. PBT Margin have doubled from 13% to 25% over past 2 years PAT have grown at 100% CAGR over past 2 years and margins have improved from 8.5% in FY14 to 19% in FY16. RoE: MOFSL management has been focusing more aggressively on delivering healthier RoEs to stakeholders. Its strategy has thus involved winding down equity deployed in low yield business and re-allocating the same to non-broking businesses that can deliver better returns. RoE has

17 Particulars Edelweiss JM Financials IIF Holdings Motilal Oswal Fin Services RoE has improved from 8.2% in FY14 to PAT reported 30% CAGR over past 3 improved from 3.5% in FY14 to 12.4% in 12.1% in FY16. RoE excluding years, margins have improved from 30% FY16. Prior to entering the NBFC Insurance has improved from 11.9% in FY14 to 16.6% in FY16. in FY14 to 34.2% in FY16. RoE have improved from 10% in FY14 to 15.5% in FY16. business, MOFSL remained debt free, hence RoEs are low. II. Credit Business Particulars EDEL JMFL IIFL MOFSL** AUM - FY16 (Rs. bn) Rs bn Rs.72.1 bn Rs bn Rs.20.9 bn AUM growth 3 yr CAGR 45% 34% 25% NA AUM segments Segment AUM Mix Wholesale : 62% Retail : 29% Distress asset credit : 9% Segment AUM Mix Real Estate Financing :78% Capital Market (LAS) :22% 17 Segment AUM Mix Mortgage : 53% Gold loans : 16% Capital market (LAS) : 15% Commercial Vehicle : 10% SME/ Medical Equipment: 6% Diversified Loan book, Moderate Risk Affordable Home Finance:100% Segment Mix & Risk Diversified, Concentrated, Only one segment, Moderate Risk High Risk Low Risk NII FY16 (Rs.mn) Rs. 12,223 mn Rs.5669 mn Rs. 11,563 mn Rs. 1,109 mn Revenue 3 yr CAGR 43% 48% 10% 8% Credit business income as % of Total Revenue 46% 48% 48% 12% NIMs on AUM (FY16) 7.0% 8.4% 5.5% 3.9% High NIMs Higher share of wholesale loans in AUM - High NIMs Increase in construction finance / real Lower NIMs Shift in loan mix towards low yielding segments - Comments on NIMs Developer funding and collateralized / structured estate lending which are structured secured mortgage lending which led NIM decline loans are high yield loans (range 15-18%) while collateralized loans with reputed from 8.3% in FY13 to 5.5% in FY16. within retail provides high yielding SME and agri developers. financing. Cost to Income ratio (C/I ratio) (FY16) Comments on C/I ratio Lower NIMs As it is present in secured housing finance business with LTV of 55-60%. 44% <10% 46% 38% In-line with industry avg. in retail lending C/I ratio have increased by 600 bps over last 3 years to 44% in FY16 due to shift towards retail lending which has higher origination cost. Lowest C/I ratio Reflective of focus on wholesale clients in construction finance and focus on repeat business, LAS business is restricted to broking customers. Highest C/I ratio amongst peers With higher share of granular retail loans and high origination cost. In-line with peers C/I ratio With higher share of granular affordable housing loans RoAUM (FY16) 1.9% 5.0% 1.9% 3.3% RoE (FY16) 16.1% 13.5% 16.9% 16.0% High RoA (better than peers due to low Comments on RoA & In-line with the peers. opex cost and better NIMs) and low RoE leverage led to subdued RoE. In-line with peers. High RoA with low leverage. GNPA (%) FY16 1.4% 0.3% 1.4% 0.2%

18 Particulars EDEL JMFL IIFL MOFSL** Comments on Asset Quality Stable asset quality with avg. GNPA at 1.2% and avg credit cost at 100 bps over past 3 years. Robust asset quality with collateral backed loans with cash flow. Stable asset quality with avg. GNPA at 1.2% and avg. credit cost at 60 bps over past 3 years. Robust Asset Quality, loan book has not seasoned yet. Capital adequacy ratio (FY16) 18% 29% 18% NA ** MOFSL 2 yr CAGR III. Non-Credit Business: Particulars EDEL JMFL IIFL MOFSL** Total AUM: Rs.422 bn Total AUM: Rs.439 bn Total AUM: Rs.169 bn AUM (Rs mn) Wealth management: Rs.295 bn Wealth management: Rs.269.6bn Mutual Fund & 3 Total AUM: Rs.794 bn Party Distribution: Rs.77 bn Asset Management: Rs.50 bn Mutual Fund: Rs bn Private Equity: Rs.28bn BMU segment assets: Rs.77 bn Alternative Assets: Rs.7.7bn Wealth Management: Rs.64 bn AUM 3 yr CAGR 57% 30% 28% 64% Capital market volume share FY16 2%+ 0.74% 2.1% 2% Revenue (FY16) (Rs. mn) Rs. 10,246 mn Rs. 6,057 mn Rs. 12,300 mn Rs. 7,949 mn Revenue 3 yr CAGR 22% 7% 10% 31% Non- credit business income as % of total revenue 39% 52% 52% 88% C/I ratio 3 yr Avg 78% 78.5% 80% 72% PAT gr 3 yr CAGR 33% 19% 33% 72% PAT margins 3 yr Avg 14% 14% 14% 15% RoE (FY16) 17.7% NA 22.8% 11.1% Comments ** MOFSL 2 yr CAGR Total AUM has grown at 57% CAGR over past 3 years, contributed by growth in mutual fund and wealth management AUM. The Business Management Unit (BMU) has treasury assets of Rs.77bn, manages the group liquidity. C/I ratio in line with peers, it has declined to 76% as of FY16. Though a strong Investment Banking player, its broking business was impacted by the sluggish capital market activity. Market share has declined from 1%+ in FY12-13 to ~0.7% in FY16. Total AUM has grown at 30% CAGR over past 3 years. C/I ratio in line with peers. Wealth management contributes 26-27% of total income and capital market (broking and IB) constitutes ~23%. Revenue and profits have degrown from capital market / broking business with pressure on commission rates and decline in market volumes. AUM grown at 28% CAGR over past 3 years C/I has been marginally on higher side MOFSL is the only player which continues to derive a dominant part of revenues from stock broking activity, although contribution from broking in revenues have declined from 64% in FY13 to 46% in FY16 Broking segment: have gained market share by 50 bps over last 2 years to 2% helped by continuous client acquisition. AUM growth at 64% CAGR with strong traction from mutual fund and wealth management segment on account of higher inflows and inclination to invest in financial asset. Lowest C/I amongst peers 18

19 IV. 9-month Analysis (as per reported financials) Company EDEL JMFL IIFL MOFSL Particulars (Rs.mn) 9MFY17 9MFY16 YoY gr. 9MFY17 9MFY16 YoY gr. 9MFY17 9MFY16 YoY gr. 9MFY17 9MFY16 YoY gr. Total Income 46,628 37,349 25% 16,327 12,088 35% 35,114 28,551 23% 12,097 7,527 61% C/I ratio 39.4% 36.5% 24.7% 27.3% 31.0% 34.3% 50.3% 62.8% EBITDA 28,256 23,707 19% 12,291 8,783 40% 24,228 18,752 29% 6,016 2, % EBITDA Margins % 60.6% 63.5% 75.3% 72.7% 69.0% 65.7% 49.7% 37.2% PBT 6,886 3,908 76% 6,455 4,915 31% 8,609 6,033 43% 3,706 1, % PAT 4,393 2,926 50% 3,193 2,867 11% 4,997 3,747 33% 2,698 1, % PAT Margins 9.4% 7.8% 19.6% 23.7% 14.2% 13.1% 22.3% 16.2% V. Valuations Particulars EDEL JMFL IIFL MOFSL Promoters 37% 65.3% 29.1% 71.3% Shareholding (Dec 2016) FII 29.6% 14.9% 26.4% 12.5% DII 0.8% 2.7% 2.0% 1.5% Others 32.6% 17.1% 42.5% 14.7% 5 yr Cagr Return 36% 40% 40% 43% Stock Return 3 yr Cagr Return 66% 49% 76% 101% 1 yr Return 147% 121% 107% 164% 6 mth Return 23% 30% 56% 51% EPS - FY16 (Rs.) TTM EPS (Rs) Book Value - FY16 (Rs) Book Value Q3FY CMP (Rs.) Current P/TTM EPS (xs) Current P / Q3FY17 BV (xs) P/E - FY16 (xs) P/BV - FY16 (xs) P/E 3 yr Avg (xs) P/E 5 yr Avg (xs) P/BV 3 yr Avg (xs) P/BV 5 yr Avg (xs)

20 ANNEXTURE-I Management Background and Pedigree Management team Designation With EDEL since Previous Assignment Qualification Rashesh Shah Co-Founder, Chairman & CEO Since inception, Has more than 25 years of experience in the financial services sector. - Prior to co- founding EDEL in 1995, he worked with ICICI Ltd. He has previously been on the executive committee of the National Stock Exchange of India (NSE) and is a member of the SEBI (Securities & Exchange Board of India) committee for review of insider trading regulations. - Recently he has been appointed as Vice President of FICCI and also serves as the Chairman of Maharashtra State council of FICCI. - MBA from IIM Ahmedabad. - Diploma in International Trade from IIFT, Delhi. Venkat Ramaswamy Co-Founder, Executive Director Since inception, Has more than 25 years of experience in the financial services sector. - Prior to starting EDEL, has worked with Spartek Emerging Opportunities Fund and ICICI Ltd as part of project financing team. - Currently he co-heads EDEL s Distress Asset & Global Asset Management along with heading its Investment Banking business. - MBA from University of Pittsburgh, USA. - Bachelor s Degree in Electronic Engineering Himanshu Kaji, Executive Director and Group COO Has more than two decades of experience in the areas of business strategy, risk, finance, and corporate advisory. - Prior to joining EDEL, Himanshu worked in Investment Banking team at ICICI and also served as Honorary Treasurer and official spokesperson for The Bombay Stock Exchange (BSE) and advised domestic and foreign capital market players for acquisition of related businesses in India. - Chartered Accountant - Post Graduate Diploma in Securities Law Rujan Panjwani Executive Director, Edelweiss Group Has more than 25 years of experience in the financial services industry working across all asset classes. - He plays key role in several strategic initiatives for the Group and currently is a member of the Assets & Liabilities Committee that primarily manages the Group's balance sheet and the Global Risk Committee. - Besides being on the Board of Directors of EDEL, he is also on the board of ECL Finance Limited Edelweiss Group's NBFC and Edelweiss Asset Management Company. - Electrical Engineer Nitin Jain CEO, Global Asset & Wealth Management, Edelweiss Financial Services Mr. Nitin has extensive multi asset class investment experience across local and global markers. - He has played an integral role in the Edelweiss transformation from a boutique investment bank into a diversified financial services company, and is member of the core management committee. - In his earlier role of head of Retail Capital market, he was instrumental in expanding the retail broking business across asset classes and led to the successful integration of Anagram Stock Broking Ltd. - B.Tech from IIT- Kharagpur - MBA from IIM Calcutta Vikas Khemani President & CEO, Edelweiss Securities Limited Prior to joining EDEL, Mr. Vikas worked for 6 years with ICICI Securities Ltd. - He currently heads the wholesale capital market SBU. - Chartered Accountant - Chartered Financial Analyst 20

21 Management team Ravi Bubna Designation President and Co-Head Credit and Fixed Income, ECL Finance With EDEL since 2007 Previous Assignment - Mr. Ravi has over 2 decades of experience across corporate finance, quantitative financing, risk, credit as well as general management. - Prior to joining EDEL, he was Joint President and Country Head of Birla Global Finance Limited spending over 13 years in the group s financial services business and has worked as Group Head Treasury for Parasrampuria Group of Companies. - Currently he is the President and Co-head of credit and fixed income. Qualification - Bachelors of Commerce S. Ranganathan President and CFO, Edelweiss Financial Services Limited Mr. Ranganathan has over 2 decades of experience in finance industry. - Prior to working with EDEL, he worked as Vice President with Citi Bank India between and later joined Bank of America Merrill Lynch as its CFO. - Qualified Chartered Accountant, Cost Accountant. - Fellow member of the Institute of Company Secretaries - Law Graduate Deepak Mittal MD & CEO, Edelweiss Tokio Life Insurance Prior to joining EDEL, Deepak worked with Telecom and Utilities Group of N M Rothschild & Sons in India and has also worked on fund raising, M&A and financial advisory assignment with leading corporates. - After joining EDEL, Deepak worked with capital market division and subsequently became CFO at the time of EDEL IPO. - Currently, Mr. Mittal is working as the CEO and Managing Director of Edelweiss Tokio Life Insurance Company and is also an integral part of the EDEL s core management committee. - MBA from IIM Ahmedabad. - Chemical Engineer from IT- BHU. Anil Kothuri President & CEO, Edelweiss Retail Finance Limited Mr. Kothuri has over 16 years of experience in the field of mortgage and asset financing in small and medium enterprises (SME), auto loans and unsecured lending. - Prior to joining EDEL he was with Citibank leading audit, operations, sales, product management and marketing. - MBA from IIM Ahmedabad. - Computer Engineer from Andhra University. Hemant Daga CEO, Global Markets Prior to EDEL, Hemant has worked with ICICI Bank in the Global Markets division. He has extensive multi asset class investment experience across local and global markets. - Currently, he heads the global market business and responsible for managing the treasury and overseeing all investment decision for the group. - MBA from IIM Bangalore 21

22 The Board of Directors of EDEL consist of imminent and highly qualified individuals, having vast experience in the Financial Services and Advisory space. Many of them have served in various capacity for Government institutions as well as in Indian Administrative Services. The board is led by Mr. Rashesh Shah as Chairman of the Company. Non-Executive and Independent Directors Members Designation Previous Assignment Qualification Vidya Shah Kunnasagaran Chinniah P. N. Venkatachalam Berjis Desai Non- Executive Director Independent Director Independent Director Independent Director - Ms. Vidya has 11 years of experience working in investment banking team for companies like ICICI, Peregrine, and NM Rothschild advising corporations in capital raising and M&A transactions. - Prior to Edelweiss Give Foundation, she has worked as CFO of EDEL. - Presently she is responsible for the philanthropic activities of Edelweiss group (Edelweiss Give Foundation) - Served as Global Head - Portfolio, Strategy and Risk Group with GIC Special Invst. (Pvt. Equity arm of the Govt. of Singapore Invst Corp). - Mr. Venkatachalam has wide experience in the banking sector in India and abroad and has also worked in the software industry in Banking and Finance verticals. - He retired as Managing Director of State Bank of India in He was a member of the Interim Pension Fund Regulatory Authority of India and a Director on the Board of Small Industries & Development Bank of India (SIDBI). - Mr. Desai has varied experience in the legal field, with specialization in Corporate Law, Mergers & Acquisitions, Derivatives, Securities & Financial Laws, International Business Laws and International Commercial Arbitration. - He is the Managing Partner of J. Sagar Associates, one of India s leading law firms. - Bachelor s degree in Commerce - MBA from IIM Ahmedabad - B.E. in Electrical Engineering from the National University of Singapore. - MBA from the University of California, Berkeley - Chartered Financial Analyst. - Master s degree in Economics - Certified associate from Indian Institute of Bankers. - Master s degree in Law from the University of Cambridge. Sanjiv Misra Independent Director - Mr. Misra has a rich and varied experience in the financial services industry, having worked with various organizations, including Goldman Sachs and Citigroup. - Mr. Misra is the President of Phoenix Advisers Pte. Ltd., an advisory and principal investing firm and is also working as the Chairman on the Apollo Group s Asia Pacific Advisory Board. - Bachelors of Arts in Economics from St. Stephens College. - MBA from IIM Ahmedabad. - Masters of Management from J. L. Kellogg Graduate School of Management Sunil Mitra Navtej S. Nandra Biswamohan Mahapatra Independent Director Independent Director Independent Director - Broad experience in economic policy making. Former Finance Secretary of Govt. of India - President of E*TRADE Financial Corporation. Prior to this he served as Head of the International business for Morgan Stanley Investment Management - Former RBI Executive Director. He was in-charge of the Department of Banking Operations & Development, as well as has worked with the Department of Bank Accounts & Inspection. - Bachelor s degree in Science from Delhi University - Indian Administrative Service (1975 batch) - MBA from IIM, Ahmedabad, - Bachelor's degree in Commerce (Honors) from the University of Delhi. - Master of Science in Management (MSM) degree from the Arthur D. Little Management Education Institute, USA. - MBA from University of Delhi - M.A. from Jawaharlal Nehru University. 22

23 Shareholding pattern Total promoter stake in Edelweiss Financial Services Ltd. stands at 37%, which is distributed between Mr.Rashesh Shah, Mr Venkat Ramaswamy and their Family & Entities. Domestic Institutions held 0.8% stake and Institutional Investors held 30% stake in the company as on 31th December Some of the Marquee Institutional Investors are First Carlyle Venture (8.2%), Saif India Holdings (3.1%), Privatbank IHAG Zurich AG (3.1%), Fidelity Investment Trust (2.1%) and Amansa Holdings (1.4%). Also, Mr. Rakesh Jhunjhunwala a renowned long-term investor also holds over 1% stake in the Company. Particulars Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Dec-16 bps change over March 2012 A. Promoter 37.8% 37.4% 37.2% 37.7% 37.8% 37.0% - 77 bps B. Public 62.2% 62.6% 62.9% 62.3% 62.3% 63.0% + 77 bps Institution 19.8% 21.1% 22.6% 26.8% 30.3% 30.3% bps Non-Institution 42.5% 41.5% 40.2% 35.4% 31.9% 32.7% bps (A+B) Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 0 bps Strong credit rating Year FY11 FY12 FY13 FY14 Long term credit rating AA- AA- AA- AA-, AA FY15 AA, A1+ FY16 AA, A1+ FY17 AA, A1+ EDEL long term credit rating has been inching up from AA- in FY10 to AA (ICRA) & A1+ (CRISIL) in FY17. The company also has a good short term rating of A1+, which draws strength from EDEL strong capitalization, healthy asset quality, comfortable earnings profile, robust business model and experienced management team. The strong credit ratings enable EDEL to raise debt from international market through masala bonds, bank borrowings and retail deposits at competitive rate, which is also reflected in lower cost of borrowings. CRISIL has reaffirmed its A1+ rating on short term debt in January Key Market Data Table Close of 19 th April, 2017 Bloomberg Code Last Price, M. Cap, 52w H/L EDEL: IN Rs. 177/- (BSE) Rs. 148bn/ USD 2.2 bn Rs.185.3/56.2 Shares outstanding, Face Value mn, Rs. 1.0/- (Dec 2016) Promoter holding (as on 30 th December 2016) Institutional holding (as on 30 th December 2016) Marquee Investors (as on 30 th December 2016) Promoter holding at 36.98% (41% of promoter s shares representing 15% of total; shares outstanding are pledged). vs 37.81% as on 30 th December 2015 and 37.11%as on 30 th Sept FII 29.56% (vs 28.39% as on 30 th Dec 2015 and 30.32% as on 30 st Sept 2016). DII 0.78% (vs 1.39% as on 30 th Dec 2015 and 0.92% as on 30 st Sept 2016). First Carlyle Ventures Mauritius (8.2%), Saif India Holdings (3.1%), Privatbank IHAG Zurich AG (3.1%), Fidelity Investment Trust (2.1%), Amansa Holdings (1.43%) and Rakesh Jhunjhunwala(1.08%) 23

24 Key Financial Parameters for Investment Screening Sr. No. 1 2 Aspect Credit Business - Loan Book -CAGR Non-Credit Business - AUM - CAGR Required Criteria for Equentis 5x5 strategy FY12-16 Actual Value (Historical) Grading of Historical Performance 20-25% CAGR over last 5yrs 50% 20-25% CAGR over last 5yrs 52% 3 yr CAGR FY17-22E Future Value (Forecasted) Grading of future estimates 25% Achieved on higher base 23% Achieved on higher base 4 Total Income -CAGR 25-30% CAGR over last 5yrs 24% 29% 5 PAT -CAGR 30-35% CAGR over last 5yrs 12% 30% 6 NIM- AVG 7 RoA- AVG 8 RoE- AVG At least avg. 5-8% over last 5yrs with increasing bias Avg. around % over last 5yrs with increasing bias Avg. around18-20% over last 5yrs with increasing bias 9 Leverage -AVG Avg. 8-9xs over last 5 yrs Note - Above Blue, In-Line Green, Below Red Avg.6.8% (3 yr avg) inc. bias 7.0% in FY16 Avg.1.2% 1.2% in FY16 Avg.8.7% 12.1% in FY16 Avg.7.6xs 10.1xs in FY16 Avg. 7.0% stable Avg.2.2% with inc. bias 2.5% proj. in FY22 Avg.18.8% with inc. bias; 21% in FY22E Avg.8.5xs 8.2xs in FY22E Note- We expect a marked improvement in profitability and return parameters of the company supported by strong loan book growth, higher income growth from non-credit business, reduction in loss from insurance business and rising operating leverage. Edelweiss Financial Services Limited - Daily Price Chart (BSE) Price (Rs.) Apr-2011 Oct-2011 Apr-2012 Oct-2012 Apr-2013 Oct-2013 Apr-2014 Oct-2014 Apr-2015 Oct-2015 Apr-2016 Oct-2016 Apr-2017 Period 24