IIFL Capital Services, a key player in the capital markets industry, currently holds a Mojo Score of 54.0 with a corresponding grade classified as Hold as of 19 Nov 2025. This represents a call change from its previous evaluation dated 18 Nov 2025. The market capitalisation grade stands at 3, indicating a mid-tier valuation relative to its peers. On the trading day of the trigger, the stock recorded a positive day change of 1.15%, closing at ₹316.45, slightly above the previous close of ₹312.85. The stock’s 52-week price range spans from ₹170.00 to ₹387.05, reflecting considerable volatility over the past year.
Examining the technical parameters, the revision in evaluation is primarily influenced by an upgrade in the technical grade from mildly bullish to bullish. Weekly technical indicators such as the MACD and Bollinger Bands signal bullish momentum, while monthly indicators present a more mixed picture with mildly bearish or mildly bullish tendencies. The daily moving averages reinforce the bullish stance, supported by weekly KST and monthly On-Balance Volume (OBV) trends. However, some indicators like the Relative Strength Index (RSI) and Dow Theory show no definitive trend signals, suggesting a cautious technical outlook.
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From a valuation perspective, IIFL Capital Services exhibits a Price to Book Value ratio of 3.5, which suggests a fair valuation relative to its sector. The company’s Return on Equity (ROE) stands at 20.8%, consistent with its long-term average ROE of 23.93%, underscoring a stable quality of earnings and capital efficiency. Despite the fair valuation, the stock’s returns over the past year have been modest at 3.08%, trailing the Sensex’s 9.48% return for the same period. However, the company’s long-term returns over three and five years have significantly outpaced the benchmark, with cumulative returns of 360.96% and 578.35% respectively, compared to Sensex returns of 37.31% and 91.65% over the same durations.
Financial trends present a more complex picture. The latest quarterly results for Q2 FY25-26 reveal a decline in profitability metrics. The Profit After Tax (PAT) for the quarter stood at ₹84.41 crore, reflecting a contraction of 52.1% compared to the previous four-quarter average. Similarly, Profit Before Tax excluding Other Income (PBT less OI) was reported at ₹144.57 crore, down by 15.3% relative to the prior four-quarter average. The Dividend Payout Ratio (DPR) is notably low at 13.05%, indicating a conservative approach to shareholder returns amid the subdued earnings environment. These figures contrast with the company’s healthy long-term growth rates, where net sales have expanded at an annualised rate of 25.63% and operating profit at 24.00%, signalling robust underlying business momentum despite short-term earnings pressure.
Institutional investors hold a significant stake in IIFL Capital Services, with 21.96% ownership. This level of institutional participation often reflects confidence in the company’s fundamentals and governance, as these investors typically possess greater analytical resources and longer investment horizons compared to retail participants.
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Technicals have played a pivotal role in the adjustment of IIFL Capital Services’ evaluation. The weekly MACD and Bollinger Bands have shifted to a bullish stance, supported by daily moving averages that indicate upward momentum. Conversely, monthly indicators such as the MACD and KST remain mildly bearish, suggesting that while short-term momentum is positive, longer-term trends warrant cautious observation. The absence of clear signals from the RSI and Dow Theory further emphasises the need for a balanced view on technical strength.
In terms of price performance, the stock has experienced a mixed trajectory in recent periods. Over the past week, the stock declined by 0.81%, contrasting with the Sensex’s gain of 0.96%. The one-month return was negative at -7.19%, while the Sensex recorded a positive 0.86% return. Year-to-date, IIFL Capital Services’ return was -3.17%, compared to the Sensex’s 8.36%. These short-term underperformances are offset by the company’s strong multi-year returns, which have substantially outpaced the benchmark indices.
Quality metrics remain a cornerstone of the company’s profile. The consistent ROE above 20% over the long term reflects effective capital utilisation and profitability. The company’s ability to sustain net sales and operating profit growth at annual rates exceeding 24% demonstrates operational resilience and market demand strength. However, the recent quarterly earnings contraction highlights challenges that may be linked to broader market conditions or sector-specific headwinds within the capital markets industry.
Overall, the revision in IIFL Capital Services’ evaluation score encapsulates a synthesis of technical improvements, steady valuation parameters, mixed financial trends, and enduring quality fundamentals. Investors analysing this capital markets entity should consider the interplay of these factors alongside prevailing market conditions and sector dynamics.
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