SEBI REGISTRATION NUMBER – INH000002582 (Equity Advisory Company)

About Me & What we do

•Founder of Stallion Asset (Equity Advisory Company). SEBI-INH000002582
•Education – Graduated from Kingston University London, CFA (USA),CMT (USA)
What we look for in our picks:
Growth of More than 25%
Huge Opportunity Size
Superb Management
High Return of Capital Employed
Reasonable Valuations
Disclosure
Disclaimer: www.stallionasset.com (here in referred to as Stallion Asset) is the domain owned by Amit Jeswani. Mr Amit Jeswani is the sole proprietor of Stallion Asset and
offers independent equity research services to retail clients on subscription basis. SEBI (Research Analyst) Regulations 2014, Registration No.INH000002582

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There are Only 4 Types of Businesses
A Shark in an Ocean
A Shark in a Pond
A Small Fish in an Ocean
A Small Fish in a Pond

The Size of Opportunity is the foundation on which large wealth creation lies, simply put it’s the
size and duration of growth (of Earnings) of a business.
EDELWEISS LIMITED – CMP 300
 Market Cap – 27500 Crores
 Profit After Tax – 890 Crores
 Price Earnings Ratio - 31
 Profit Ex Insurance – 1036 Crores
Price Earnings Ex Insurance - 26
 Price to Book – 4.1x
 ROE ex Insurance– 22%

ITS JUST GETTING STARTED!

Journey From 2 Trillion to 5 Trillion GDP
• China Took 5 Years to Go from 2 Trillion to 5 Trillion (2004-2009)
• USA Took 11 Years to Go from 2 Trillion to 5 Trillion (1977-1988)
• Japan Took 8.5 Years to go from 2 Trillion to 5 Trillion (1978-1986)
• India Became 2 Trillion GDP in 2015, How Much time to reach 5 Trillion?
Today we are at 2.5 Trillion i.e. More Money would be made in the next 8 Years than what was
created in the last 70 years!
A Diversified Play on Financial Services
Edelweiss

Investment
Lending Protection
s

Wealth
Retail Credit Life Insurance
Management

Wholesale General
Credit AMC
Insurance

Distress Credit Brokerage

Edelweiss Profit Contribution ex Insurance
Edelweiss – A growth engine
 Credit Business – Clear Value Migration
• Best Competition is Government – Air India, BSNL, UTI Mutual Fund, Doordarshan.
• Next? PSU Bank, Insurance Companies?
• Zero Competition from Foriegn Banks In India
• MultiLine NBFC is a better Business!
• Opportunity to Grow Credit Business 4x by 2025.
• ARC = 50% Market Share
Golden Period for Retail Credit Companies in India, both Retail and Corporate. The Top 45 business
houses in India are 50% of the nation’s banking debt, even after nationalization of banks.
Understanding the Credit Business
Non Credit Business – Financialization of Savings-
Wealth Management Business
• In 1979 the total AUM of Mutual Funds in
America was just 94 Billion $, in the next 20
years by the end of 1999, the asset under
management grew to 6,846 Billion$, i.e. it
grew at 24% CAGR.
• Profit Pool of Mutual Funds in India was Just
4000 Crores in FY2018, James Simons of
Renaissance Capital (Midsized Hedge fund in
USA) alone made 1.7 Billion$ of Profit this
year.
 Asset Management Business & Brokerage Business

• Took Over JP Morgan’s Mutual Fund

Business.
• Brokerage Business of edelweiss is primarily
Institutional and hence cyclicality is less
Life Insurance – Just getting Started

• Government is a competition for the

Sector, A Repeat of PSU Bank Possible?
• Started Late in 2013 and Will
Breakeven by 2022 - J Curve in
Insurance business.
The Business Model = Fees + Longevity
Edelweiss - Try, Make Mistakes, Scale!
1996-Merchant Banking
2000- Brokerage
2007 – Credit Business Primarily for Margin Funding
2008 – Asset Reconstruction Company
2011 – Wealth Management
2012 – Asset Management
2013 – Life Insurance
2017- General Insurance
Strategy = Try, Make Mistakes, Scale!
• Invest 10-15% of Profits in New Business which have Synergy will existing business.
• Get the Right Team, Learn and do Small mistakes in first 2-3 Years
• Scale it up!
Conclusion –
 Growth of More than 25%
 Huge Opportunity Size
 Superb Management
 High Return of Capital Employed
 Reasonable Valuations
THANK YOU
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