ICICI Securities Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 14928.26 Crore) operating in Financial Services sector.
ICICI Securities Ltd. key Products/Revenue Segments include Income From Brokerage & Commission, Other Services, Interest, Income From Sale Of Share & Securities, Dividend for the year ending 31-Mar-2021.
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 794.76 Crore, down -10.93 % from last quarter Total Income of Rs 892.30 Crore and up 6.29 % from last year same quarter Total Income of Rs 747.70 Crore. Company reported net profit after tax of Rs 273.59 Crore in latest quarter.
A significant moderation in cash volumes poses challenges to ISEC, as it derives a larger part of its revenues from cash volumes (~60-65% of broking revenues). While the diversified revenue stream will help to partially offset the sharp fall in broking revenues, the brokerage reduces revenue estimates by 6/10% over FY23/24E, as it builds-in weak cash volumes and pressure on broking yields. Thus, owing to lower revenue growth along with elevated cost ratios with continued investments in technology and business expansion, it reduces earnings estimates by 14/20% over FY23/24E. However, with valuations being inexpensive (11x FY24E EPS vs long-term avg. P/E of ~15x), it continues to maintain BUY recommendation on the stock with a revised target price of Rs 575/share (14x FY24E EPS), implying an upside of 23% from the CMP.
Promoters held 74.87 per cent stake in the company as of 30-Jun-2022, while FIIs owned 10.41 per cent, DIIs 3.43 per cent.
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