SWOT Analysis of IIFL Securities

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Introduction of SWOT Analysis:-

SWOT analysis is a framework for identifying and analyzing an organization's

strengths, weaknesses, opportunities and threats. These words make up the
SWOT acronym.
The primary goal of SWOT analysis is to increase awareness of the factors that
go into making a business decision or establishing a business strategy.
Businesses commonly use SWOT analysis, but it is also used by nonprofit
organizations and, to a lesser degree, individuals for personal assessment. SWOT
is also used to assess initiatives, products or projects.
 Description with 4-quadrant diagram:-
A SWOT analysis is a visual study tool that can be used to
identify specific strengths and weaknesses in work and personal
life situations. It helps with decision making and planning
ahead. A SWOT analysis diagram is formed by a two-by-two
grid. Each quadrant has an outline of the subject's strengths,
weaknesses, opportunities, and threats (SWOT).

Any business has strengths and weaknesses, but no organization

exists in a vacuum- We must also analyze the opportunities and
threats that abound in the marketplace. SWOT analysis tool
keeps users informed about internal and external factors that
affect their company's success. Lucidchart's SWOT tool utilizes
a simple quadrant layout to quickly and efficiently chart and
present key market findings.
 SWOT Analysis of IIFL Securities:-

Strengths:-
 Rising Net Cash Flow and Cash from Operating activity
 High Revenue and Profit Growth with High Return on Capital Deployed (ROCE) and Low PE ratio
 Effectively using its capital to generate profit - RoCE improving in last 2 years
 High growth and High Return on Equity (ROE) with Low PE ratio
 Increasing Revenue every Quarter for the past 4 Quarters

Weakness:-
 Inefficient use of assets to generate profits - ROA declining in the last 2 years
 Decline in Net Profit with falling Profit Margin (QoQ)
 Promoter decreasing their shareholding
SWOT Analysis of IIFL Securities:-

Opportunity:-
 Profit making Companies with High ROCE and Low PE
 Stock with Low PE (PE < = 10)

Threats:-
 Stringent Economic measures by Government and RBI
 Entry of foreign finance firms in Indian Market
Conclusion:-
 SWOT analysis of IIFL Securities analyses the brand by its strengths, weaknesses, opportunities
& threats. In IIFL Securities SWOT Analysis, the strengths and weaknesses are the internal
factors whereas opportunities and threats are the external factors.

 SWOT Analysis is a proven management framework which enables a brand like IIFL Securities
to benchmark its business & performance as compared to the competitors. IIFL Securities is one
of the leading brands in the financial services sector.