CRISIL Research has assigned a IER fundamental grade of 4/5 to IIFL Holdings. The grade indicates that IIFL's fundamentals are 'superior' relative to other listed equity securities in India. ''Our fair value of the stock is Rs.190 a share. At the current market price of Rs.174 a share, our valuation grade is 3/5 indicating that the market price is aligned. The grades are not a recommendation to buy, sell or hold the graded instrument, or a comment on the graded instrument's future market price or its suitability for a particular investor,'' said CRISIL Research.

The assigned fundamental grade reflects IIFL's established position as one of India's leading financial services corporates with a presence in retail lending, retail and institutional broking, investment banking, financial products distribution, wealth management and asset management.

CRISIL Research expects IIFL's revenues to increase at 22% CAGR over FY14-17 to Rs 51.5 billion driven by strong growth across segments. CRISIL Research expects PAT to increase at 33.8% CAGR over FY14-17 to Rs 6.66 billion driven by 312 bps improvement in PAT margin over the same period. Return ratios are expected to improve in FY15-17 on account of higher margins resulting from operating leverage.

Shares of the company declined Rs 3.15, or 1.82%, to trade at  Rs 170.05.  The total volume of shares traded  was  15,291 at the BSE (3.29 p.m., Monday).