Alpha Ideas 20-20: Why Stallion Asset’s Amit Jeswani Is Betting On Edelweiss
India is primed to double its size to a $5-trillion economy from $2.5 trillion at present over the next seven to eight years. Edelweiss Financial Services Ltd., with its fingers in all aspects of the country’s financial market, is the stock to bet on, said Stallion Assets’ Founder Amit Jeswani.
All the businesses of Edelweiss, including wealth management, asset management and credit, will grow five-six times over the next seven years, Jeswani said at the Alpha Ideas 20-20 event in Mumbai. “It’s a blue sky scenario for any company that is lending and can recover the money.”
The stock ticks all the right boxes of over 25 percent growth, a large opportunity size, strong management, high return on equity and reasonable valuations, he said. The firm's credit business currently has an ROE of 18 percent, while the non-credit business has an ROE of 150 percent. The stock is trading at four times its book value and 27 times its prime to earnings multiple, Jeswani showed in his presentation.
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