Industry Insights - Financial Performance & Valuation Trends

In this document you will learn about fifteenth Industry Insight report capturing the financial
performance and valuation trends over 3 year period of “Financial Services Industry”

1. Financial Services Industry
October 23
Industry Insights - Financial Performance &
Valuation Trends

2. Background (Coverage & Approach)
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23
Transique Corporate Advisors takes immense pleasure in presenting its fifteenth Industry Insight report capturing the financial
performance and valuation trends over 3 year period of “Financial Services Industry” and its Sub Industries including Asset
Management Company, Depositories, Clearing Houses and Other Intermediaries, Exchange and Data Platform, Financial Institution,
Financial Technology (Fintech), General Insurance, Holding Company, Housing Finance Company, Investment Company, Life
Insurance, Microfinance Institutions, Non Banking Financial Company (NBFC), Other Bank, Other Capital Market related Services,
Other Financial Services, Private Sector Bank, Public Sector Bank, Ratings and Stockbroking & Allied. These trends are based on
the data of last two audited financial years (FY 2020-21 and FY 2021-22) and trailing twelve months (TTM) consolidated financials as
on July 2023.
The purpose of this “Financial Services Industry Insight Report” is to provide an executive summary of Financial Services Industry
including its emerging Industry trends and Investment opportunities, macro understanding of the financial performance and
movement in the median valuation multiples of companies operating in Financial Services Industry and its Sub-Industries.
For preparation of this Financial Services Industry Insight report on we have analysed 732 companies listed on NSE/BSE. After
applying our proprietary filtration criteria for eliminating the outliers and adjusting for Infrequently Traded Companies, we have done
detailed analysis of 169 companies which has been summarised in this report.
We hope this Industry Report Series: Financial performance and Valuation trends would be of use to the Corporates, Investors and
Professionals. If you require any guidance or support or have any feedback, you may write to us at [email protected]
To read about more such Industry Insights and Valuations of 21 Industries and 193 Sub Industries, click here:
https://www.transiqueadvisors.com/transique-insight/

3. Background
India has a diversified financial sector undergoing rapid expansion both in terms of strong growth of existing financial
services firms and new entities entering the market. The number of Ultra High Net Worth Individuals (UHNWI) is estimated to
increase from 13,637 in 2021 to 19,006 in 2026. The number of HNWIs in India reached 308,000 by the end of 2021. Between
2014 and 2020, the number of HNWIs in India posted a steady rise, increasing at a CAGR of 4.1%. By the end of 2025, global
HNWI wealth is estimated to grow to over US$ 100 trillion. India’s PE/VC investment crossed US$ 60 billion in 2023.
Future Outlook
Contribution to GDP
Employment Generation
Approximately 7.7%
India is expected to have 6.11 lakh HNWIs in 2025. India is expected to be the fourth largest private wealth market globally by
2028. Investment corpus in Indian insurance sector might rise to US$ 1 trillion by 2025. The Association of Mutual Funds in
India (AMFI) is targeting a nearly five-fold growth in AUM to US$ 1.15 trillion (Rs. 95 lakh crore) and more than three times
growth in investor accounts to 130 million by 2025.
Approximately 4.12 million people
Present Scenario
The number of Demat accounts in India reached 11 crore in January 2023. As of March 2023, AUM managed by the mutual
funds industry stood at US$ 482.40 billion (Rs. 39.42 trillion) and the total number of accounts stood at 145.7 million. The
assets under management growth is expected to be 12-14% in FY2022 and 18-22% between 2022-23. Fundraising from IPOs
amounting to US$ 6.37 billion (Rs. 52,116 crore) in FY23.
Source: BT, IBEF
Executive Summary : Financial Services Industry
Key Achievements
In the Union budget of 2022-23, India has announced plans for a central bank digital currency (CBDC) which will be known as
Digital Rupee. The number of companies listed on the NSE increased from 135 in 1995 to 5,311 as of January 2023. In October
2021, eight Indian banks announced that they are rolling out—or about to roll out—a system called ‘Account Aggregator’ to
enable consumers to consolidate all their financial data in one place.
Growth Drivers
Under the Union Budget 2022-23, the government allocated US$ 204.36 billion (Rs. 1,538,779.45 crore) to the Ministry of
Finance. In May 2021, the Union Cabinet, chaired by Prime Minister Narendra Modi approved signing of a Memorandum of
Understanding (MoU) between the Institute of Chartered Accountants of India (ICAI) and Qatar Financial Centre Authority
(QFCA). The MoU would enhance cooperation between the institutes to work together to strengthen the accounting
profession and entrepreneurship base in Qatar.
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23

4. Investment Opportunities
Source: IBEF, IBEF Pdf
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23
India benefits from a large cross-utilization of channels to expand reach of financial services.
In the Union Budget 2022-23 India announced plans for a central bank digital currency (CBDC) which will be
known as Digital Rupee.
Credit, insurance and investment penetration is rising in rural areas.
HNWI participation is growing in the wealth management segment.
Lower mutual fund penetration of 5-6% reflects latent growth opportunities.
To promote the International Financial Services Centre (IFSC) in GIFT City (Gujarat International Finance
Tech City), the budget proposed more tax incentives.

5. Life Insurance
Exchange and
Data Platform
Depositories,
Clearing Houses
and Other
Intermediaries
Ratings
Public Sector
Bank
Financial Performance
Financial Performance & Valuation Multiples Trends Analysis-
Financial Services Industry
Valuation Multiples
Revenue Growth EBITDA Margin Debt to Market Cap
Negative Growth
From FY 21 to 2023
at CAGR -15%
Increased to 70x in 2023
from 49x in FY 21
EV/EBITDA Multiple
Increased to 3% in
2023 from 2% in
FY 21
Increased to 0.01 in 2023
from 0.002 in
FY 21
From FY 21 to 2023
at CAGR 14%
From FY 21 to 2023
at CAGR 17%
From FY 21 to 2023
at CAGR 11%
From FY 21 to 2023
at CAGR 10%
Decreased to 62% in
2023 from 70% in
FY 21
increased to 45% in
2023 from 44% in
FY 21
Increased to 43% in
2023 from 41% in
FY 21
Increased to 61% in
2023 from 55% in
FY 21
Constant at 30x in
2023 in comparison to
FY 21
Constant at 0.001 in
2023 in comparison to
FY 21
Decreased to 25x in 2023
from 27x in FY 21
Increased to 21x in TTM
from 15x in FY 21
Constant at 0.01 in
2023 in comparison to
FY 21
Increased to 20x in 2023
from 19x in FY 21
Decreased to 14.43 in
2023 from 28.79 in
FY 21
*TTM as on 20 -07-2023
Source: Capitaline
Sub-Industries
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23
Constant at 0.01 in
2023 in comparison to
FY 21

6. Other Financial
Services
Other Bank
Microfinance
Institutions
Private Sector
Bank
Asset
Management
Company
Financial Performance
Financial Performance & Valuation Multiples Trends Analysis-
Financial Services Industry
Valuation Multiples
Revenue Growth EBITDA Margin Debt to Market Cap
From FY 21 to 2023
at CAGR 31%
Increased to 19x in 2023
from 10x in FY 21
EV/EBITDA Multiple
Decreased to 35% in
2023 from 40% in
FY 21
Increased to 0.00 in
2023 from 0.01 in
FY 21
From FY 21 to 2023
at CAGR 23%
From FY 21 to 2023
at CAGR 12%
From FY 21 to 2023
at CAGR 16%
From FY 21 to 2023
at CAGR 1%
Decreased to 55% in
2023 from 60% in
FY 21
Inreased to 50% in
2023 from 45% in
FY 21
Increased to 63% in
2023 from 58% in
FY 21
Decreased to 55% in
2023 from 60% in
FY 21
Increased to 18x in 2023
from 15x in FY 21
Decreased to 1.77 in
2023 from 2.06 in
FY 21
Increased to 18x in 2023
from 14x in FY 21
Decreased to 0.82 in
2023 from 1.22 in
FY 21
Increased to 18x in TTM
from 17x in FY 21
Decreased to 4.90 in
2023 from 5.09 in
FY 21
Constant at 17x in
2023 in comparison to
FY 21
Constant at 0.00 in
2023 in comparison to
FY 21
*TTM as on 20 -07-2023
Source: Capitaline
Sub-Industries
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23

7. Holding
Company
Financial
Technology
(Fintech)
Housing Finance
Company
Non Banking
Financial
Company
(NBFC)
Investment
Company
Financial Performance
Financial Performance & Valuation Multiples Trends Analysis-
Financial Services Industry
Valuation Multiples
Revenue Growth EBITDA Margin Debt to Market Cap
From FY 21 to 2023
at CAGR 12%
Increased to 16x in 2023
from 10x in FY 21
EV/EBITDA Multiple
Decreased to 37% in
2023 from 39% in
FY 21
Decreased to 0.10 in
2023 from 0.43 in
FY 21
From FY 21 to 2023
at CAGR 70%
From FY 21 to 2023
at CAGR 4%
From FY 21 to 2023
at CAGR 14%
From FY 21 to 2023
at CAGR 11%
Decreased to 12% in
2023 from 23% in
FY 21
Increased to 79% in
2023 from 76% in
FY 21
Increased to 64% in
2023 from 63% in
FY 21
Decreased to 73% in
2023 from 74% in
FY 21
Decreased to 16x in 2023
from 38x in FY 21
Decreased to 0.001 in
2023 from 0.003 in
FY 21
Increased to 13x in 2023
from 12x in FY 21
Increased to 12x in TTM
from 11x in FY 21
Increased to 3 in
2023 from 2.76 in
FY 21
Increased to 11x in 2023
from 10x in FY 21
Decreased to 0.31 in
2023 from 0.4 in
FY 21
*TTM as on 20 -07-2023
Source: Capitaline
Sub-Industries
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23
Decreased to 0.02 in
2023 from 0.03 in
FY 21

8. Financial
Institution
Stockbroking &
Allied
General
Insurance
Other Capital
Market related
Services
Financial Performance
Financial Performance & Valuation Multiples Trends Analysis-
Financial Services Industry
Valuation Multiples
Revenue Growth EBITDA Margin Debt to Market Cap
From FY 21 to 2023
at CAGR 6%
Constant at 11x in
2023 in comparison to
FY 21
EV/EBITDA Multiple
Increased to 95% in
2023 from 91% in
FY 21
From FY 21 to 2023
at CAGR 19%
Negative Growth
From FY 21 to 2023
at CAGR -7%
From FY 21 to 2023
at CAGR 56%
Increased to 38% in
2023 from 37% in
FY 21
Decreased to 13% in
2023 from 14% in
FY 21
Decreased to 56% in
2023 from 63% in
FY 21
Increased to 6x in 2023
from 4x in FY 21
Decreased to 7.29 in
2023 from 10.77 in
FY 21
Decreased to 5x in 2023
from 6x in FY 21
Decreased to 0.15 in
2023 from 0.27 in
FY 21
Increased to 3x in TTM
from 1x in FY 21
Constant at 0.00 in
2023 in comparison to
FY 21
*TTM as on 20 -07-2023
Source: Capitaline
Sub-Industries
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23
Constant at 0.00 in
2023 in comparison to
FY 21

9. Financial Performance Charts for 3 Years of
Financial Services Industry
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23
Source: Capitaline
*TTM as on 20 -07-2023

10. Transaction Advisory
*TTM as on 20 -07-2023
Source: Capitaline
Valuation Multiples Trend analysis for 3 Years of
Financial Services Industry
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23

11. Life Insurance
Exchange and Data
Platform
Depositories,
Clearing Houses
and Other
Intermediaries
Ratings
Public Sector Bank
Top Performing Companies in Financial Services
Industry
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23 Based on Market Capitalization

12. Other Financial
Services
Other Bank
Microfinance
Institutions
Private Sector
Bank
Asset
Management
Company
Top Performing Companies in Financial Services
Industry
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23 Based on Market Capitalization

13. Holding Company
Financial
Technology
(Fintech)
Housing Finance
Company
Non Banking
Financial Company
(NBFC)
Investment
Company
Top Performing Companies in Financial Services
Industry
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23 Based on Market Capitalization

14. Financial
Institution
Stockbroking &
Allied
General Insurance
Other Capital
Market related
Services
Top Performing Companies in Financial Services
Industry
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23 Based on Market Capitalization

15. Industry, Sub Industry & Sub Group Classification
Financial Services Industry Insights- Financial Performance & Valuation Trends - October 23
Industry Sub Industry Sub Group No. of Companies
Financial Services
Asset Management Company NBFC-Asset Management Companies 4
Depositories, Clearing Houses and Other Intermediaries Miscellaneous - Medium / Small 1
Exchange and Data Platform Miscellaneous - Medium / Small 2
Financial Institution
Finance - Housing - Large 1
Finance - Term-Lending Institutions 4
Financial Technology (Fintech) Computers - Software - Medium / Small 1
General Insurance General Insurance 3
Holding Company
Finance - Investment / Others 5
Finance - Small 1
NBFC-Holding Companies 1
Housing Finance Company
Finance - Housing - Large 8
Finance - Housing - Medium / Small 4
Investment Company
Finance - Investment / Others 10
Finance - Medium 1
NBFC-Holding Companies 2
NBFC-Others 1
Steel - Medium / Small 1
Life Insurance
Finance - Investment / Others 1
Life Insurance 3
Microfinance Institutions Finance - Investment / Others 2
Non Banking Financial Company (NBFC)
Finance - Investment / Others 20
Finance - Large 5
Finance - Leasing And Diversified 2
Finance - Medium 1
Finance - Small 19
NBFC-Others 4
Securities/Commodities Trading Services 1
Other Bank Banks - Private Sector 2
Other Capital Market related Services Computers - Software - Medium / Small 1
Other Financial Services
Finance - Investment / Others 6
Finance - Small 7
Miscellaneous - Large 1
Securities/Commodities Trading Services 1
Private Sector Bank Banks - Private Sector 17
Public Sector Bank Banks - Public Sector 10
Ratings Miscellaneous - Medium / Small 2
Stockbroking & Allied
Finance - Investment / Others 5
Securities/Commodities Trading Services 9
    Total Companies 169