ICICI Securities Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 24519.59 Crore) operating in Financial Services sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 747.70 Crore, up 1.13 % from last quarter Total Income of Rs 739.34 Crore and up 36.84 % from last year same quarter Total Income of Rs 546.40 Crore. Company reported net profit after tax of Rs 310.72 Crore in latest quarter.
Investment Rationale
Changes in ISEC’s product and sourcing strategy have yielded results over the past year. The ‘NEO’ plan has helped counter competition from discount brokers as well as some traditional brokers who offer discount plans. The brokerage is now seeing the digital sourcing model gain strong traction in terms of customer acquisition. After a few turbulent years, the Distribution business has stabilized. The impact of regulations on margin so far have been miniscule. Going forward, overall trends in industry volumes would be key to watch out for in FY22E. It raises FY22E/FY23E EPS estimate by ~19%/ 25% to factor in strong revenue traction across the board. It maintains Buy rating with a TP of INR915 per share (21x FY23E EPS)
Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of March 31, 2021, while FIIs held 3.7 per cent, DIIs 9 per cent and public and others 12.1 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
