Parag Parikh Financial Advisory Services Ltd. (PPFAS)
About Parag Parikh Financial Advisory Services Ltd. (PPFAS)
Parag Parikh Financial Advisory Services Ltd. (PPFAS) is a leading Indian investment advisory firm established in 1992. Initially offering services on the Bombay Stock Exchange, it expanded to the National Stock Exchange and now operates primarily through its wholly owned subsidiary, PPFAS Asset Management Private Limited.
Business Divisions
a. Portfolio Management Services (PMS):
Providing tailor-made wealth management services to high-net-worth individuals and institutions.
b. Mutual Fund Operations:
Executed through its 100% subsidiary, PPFAS Asset Management Pvt. Ltd., managing equity mutual fund schemes.
c. Investment Advisory:
Offering professional advice on portfolio construction, risk management, and long-term value investing.
Key Financial Points
- Revenue Growth:
Increased from ₹89 Cr in FY22 to ₹212 Cr in FY24, reflecting robust expansion in operations. - Profit After Tax (PAT):
PAT surged from ₹39 Cr in FY22 to ₹109.11 Cr in FY24, showing solid profitability. - EBITDA Margins:
Maintained strong operational margins, averaging around 68-72% across three fiscal years. - Earnings Per Share (EPS):
EPS grew from ₹50.98 in FY22 to ₹142.29 in FY24, reinforcing shareholder value. - Reserves Position:
Reserves grew significantly from ₹117 Cr in FY22 to ₹298 Cr in FY24, indicating internal strength. - Zero Debt Model:
PPFAS maintains a debt-free balance sheet, ensuring financial stability and low risk. - Strong Investment Base:
Total investments increased from ₹96 Cr in FY22 to ₹263 Cr in FY24, reflecting prudent capital allocation.
Pros
- Strong Financials:
Consistent revenue and profit growth with high operational margins and zero debt. - Simple Holding Structure:
100% ownership of its asset management business simplifies governance and valuation. - Experienced Management:
Led by seasoned professionals known for long-term, value-oriented investment philosophy.
Cons
- Market Dependency:
Revenue and profits are sensitive to equity market performance and investor sentiment. - Regulatory Exposure:
Subject to evolving SEBI regulations which may impact operational flexibility. - Low Liquidity in Shares:
Unlisted nature and holding company structure may limit share liquidity for investors.
Key Details
| Share Name | Particulars |
|---|---|
| Parag Parikh Financial Advisory Services | ₹7,500 |
| Ltd. Unlisted | Per Equity Share |
| Lot Size | 50 Shares |
| 52 Week High | ₹8,950 |
| 52 Week Low | ₹7,500 |
| Depository | NSDL & CDSL |
| PAN Number | AABCP9117F |
| ISIN Number | INE0FGC01012 |
| CIN | U67190MH1992PLC068970 |
| RTA | Link Intime |
| Fundamentals | Value |
|---|---|
| Market Cap (in Cr.) | ₹5,751.06 |
| P/E Ratio | 52.71 |
| P/B Ratio | 18.77 |
| Debt to Equity | 0 |
| ROE (%) | 4% |
| Book Value | ₹399.47 |
| EPS | ₹142.29 |
| Face Value | ₹10 |
| Total Shares | 76,68,074 |
Financials
| P&L Statement | 2024 | 2023 |
|---|---|---|
| Revenue | 212.00 | 144.80 |
| Cost of Material Consumed | 0.00 | 0.00 |
| Gross Margins (%) | 100 | 100 |
| Change in Inventory | 0.00 | 0.00 |
| Employee Benefit Expenses | 49.24 | 28.68 |
| Other Expenses | 16.76 | 12.23 |
| EBITDA | 146.00 | 103.89 |
| OPM (%) | 68.87 | 71.75 |
| Other Income | 3.16 | 1.58 |
| Finance Cost | 0.00 | 0.00 |
| D&A (Depreciation & Amort.) | 1.89 | 1.89 |
| EBIT | 144.11 | 102.00 |
| EBIT Margins (%) | 67.98 | 70.44 |
| PBT (Profit Before Tax) | 146.32 | 103.00 |
| PBT Margins (%) | 69.02 | 71.13 |
| Tax | 37.21 | 26.53 |
| PAT (Profit After Tax) | 109.11 | 76.47 |
| NPM (Net Profit Margin %) | 51.47 | 52.81 |
| EPS (Earnings Per Share) | ₹142.29 | ₹99.72 |
| Ratio | FY24 | FY23 |
|---|---|---|
| Operating Margin | 68% | 70% |
| Net Profit Margin | 51% | 52% |
| Return on Equity | 0% | 0% |
| Debt-Equity | 0 | 0 |
| Current Ratio | 9.35 | 9.30 |
| Dividend Payout | 6% | 6% |
| Company | PPFAS | Prudent Corp. | IIFL Capital Services |
|---|---|---|---|
| Market Cap (₹ Crores) | 5,751 | 7,877 | 6,544 |
| Profitability Margin (%) | 51.00% | 17.00% | 23.00% |
| ROCE (%) | 48.00% | 43.00% | 35.00% |
| ROE (%) | 4.00% | 33.00% | 32.00% |
| D/E Ratio | 0 | 0.05 | 0.47 |
| P/E Ratio | 59.87 | 41.20 | 8.55 |
| P/B Ratio | 18.77 | 13.70 | 2.93 |
| Book Value per Share (₹) | ₹399.47 | ₹137.00 | ₹71.60 |
| Assets | 2024 | 2023 |
|---|---|---|
| Fixed Assets | 23.00 | 19.72 |
| Cash and Balances | 1.24 | 0.50 |
| Investments | 263.00 | 168.00 |
| Advances | 24.00 | 15.95 |
| Other Assets | 7.00 | 5.33 |
| Total Assets | 317.00 | 209.00 |
| Liabilities | 2024 | 2023 |
|---|---|---|
| Share Capital | 7.66 | 7.66 |
| FV (Face Value) | 10 | 10 |
| Reserves | 298.65 | 193.76 |
| Borrowings | 0.00 | 0.00 |
| Deposits | 1.10 | 1.10 |
| Other Liabilities | 10.23 | 7.23 |
| Total Liabilities | 317.00 | 209.00 |
