ICICI Direct has given Buy recommendation for 5paisa Capital with a target price of Rs. 600 in its research report issued on Jul 16, 2021

ICICI Direct’s research report on 5paisa Capital

5 Paisa is a leading discount stock broker backed by the Nirmal Jain led IIFL group. • Aggressive client accretion with ~84% of incremental client from Tier II & below cities and ~78% of customers below 35 years of age • The company has cash market share of 4.43% as of June 2021 Q1FY22 Results: 5 Paisa reported healthy. Q1FY22 results. ADTO was up 9% QoQ amid robust client accretion at 2.78 lakh • Revenue was up 21% QoQ to Rs 60 crore, led by rise in ADTO and MTF book . Consequent PAT was at Rs 7.2 crore (up 23% QoQ)

Outlook

We value 5 Paisa at ~29x P/E on FY23E EPS to arrive at revised TP of Rs600 per share.

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