EAAA India Alternatives IPO Review 2026: Should You Apply or Avoid? | Price, GMP & Risks #shorts

StockBox • 10 days ago

Original source

What This Video Is About

The video analyzes the Edelweiss Alternative IPO, focusing on the company's fund management business, assets under management, and potential for listing gains.

Major Ideas Discussed

  • The company has an Assets Under Management (AUM) of ₹95,000 crores, with ₹45,000 crores being fee-paying assets, and a client base of over 11,000 clients.
  • The analysis highlights green flags such as a 23% Compound Annual Growth Rate (CAGR) in fees paying AUM from 2023 to 2026, 23% year-on-year revenue growth, and a 13% year-on-year profit growth ratio.
  • Red flags include the Offer for Sale (OFS) primarily benefiting promoters and the risk posed by variable additional returns, which accounted for 30% of the income in 2026.
  • The company's debt to equity ratio has improved from 0.661 in 2024 to 0.36 in 2026.
  • The decision to invest for listing gain depends on growth prospects and valuation, with a Price to Earnings (P/E) ratio of 40, which is not excessively expensive but not cheap either.

What to Watch Next

Investors should monitor the company's performance over the next one to two quarters for long-term investment decisions, considering the growth prospects of the asset management sector and the company's low debt and good revenue CAGR.