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Growth in %
81.88%
1 Year
113.98%
2 Year
429.20%
3 Year
The company is a market leader in the discount broking industry. It took the first-mover advantage by starting its business early when other players were busy competing in the conventional broking segment. Zerodha started addressing the persistent problems in the industry by building user-friendly technology. All these years after working on its technology, when the first time investors started flooding into the market Zerodha was the biggest beneficiary. The numbers in FY20, FY21, and FY22 shows clearly the leadership position of the company.
Growth in %
86.61%
1 Year
122.26%
2 Year
385.38%
3 Year
The unique selling proposition of Zerodha is that it spends very less amount on advertisement & marketing. In FY22, it spent Rs 1.0 Cr vs industry average of Rs 113.6 Cr i.e. its client acquisition cost (CAC) is Rs 1.6 vs industry average Rs 428.6. This is possible as It spends heavily on technology Rs 303.1 Cr in FY22 vs the industry average of Rs 115.5 Cr in FY22 due to which it is able to scale its business, saving a lot of money of advertisement and marketing and hence is able to post tremendous growth in its profit in FY22
Growth in %
86.62%
1 Year
122.25%
2 Year
385.52%
3 Year
The EPS of the company has grown in line with its increasing profits
Growth in %
140.89%
1 Year
183.65%
2 Year
The company does not distribute any dividends and retains its profit to invest in its business hence the book value of the company has increased tremendously
Growth in %
89.61%
1 Year
120.12%
2 Year
382.65%
3 Year
The company is spending most of its money on talent acquisition Rs 459.0 Cr in FY22 vs Rs 316.4 Cr in FY21 and technology upgrades Rs 303.1 Cr in FY22 vs Rs 169.7 Cr in FY21. Due to increasing revenues and user-friendly technology company is able to generate volumes and hence improved EBITDA year on year (y-o-y)
Growth in %
90.55%
1 Year
120.47%
2 Year
381.64%
3 Year
The company does not have any physical assets hence low depreciation. It is a technology company and the company's intangible assets are amortized at a low rate therefore its Operating profit is increasing y-o-y
Growth in %
63.04%
1 Year
113.32%
2 Year
102.59%
3 Year
The company has to keep a lot of cash with depositories, exchanges, and fixed deposits with banks as a regulatory requirement due to which most of its asset is cash reserves. These cash assets have increased significantly from Rs 630.9 Cr in FY21 vs Rs 1,482.0 Cr in FY22 and hence the assets y-o-y.
Growth in %
466.84%
1 Year
84.03%
2 Year
0.55%
3 Year
The company's cash from operating activities has increased significantly from Rs -502.9 Cr in FY21 vs Rs 2,850.9 Cr in FY22 mainly due to an increase in net profit of the company and an improvement in the trade receivables of the company from Rs -1,354.8 Cr in FY21 vs Rs -148.5 Cr in FY22, adding significantly to the cash from operations
The company had a short-term debt of Rs 298.9 Cr in FY19 which company had paid back in FY2020 making it a debt-free company and therefore Debt to Equity ratio of the company is zero
The company is a cash-rich company. The company has Rs 1,290.8 Cr in FY22 as cash in hand due to which it is capable enough to meet its current liabilities which are trade payable i.e. the settlement money with exchanges, depositories with the current assets available, and a hence consistent current ratio of more than 1.
Due to the nature of the business, the company does not have to maintain any inventory, and hence its quick ratio is the same as its current ratio
The company makes healthy profits and does not pay any interest as it is a debt-free company and hence very high-interest coverage ratio
The operating profit of the company is on the higher side as operating leverage plays out for the company due to its ability to create volumes with the existing technology. The expenditure is now done on upgrading the technology and the talent acquisition
The return on equity (ROE) has decreased y-o-y primarily due to a decrease in the equity multiplier. This is not a negative thing but has decreased due to a relatively higher increment in equity due to retained earnings of the company compared to the increase in the assets of the company. The net profit margin of the company has increased to 42.2% in FY22 compared to 41.1% in FY21.
The return on assets decreased in FY22 from 10.9% in FY21 to 10.5% in FY22. This is again not a negative thing. There is a decrease in ROA due to more assets of Rs 24,604.3 Cr compared to total revenue of Rs 4,963.2 Cr
