Khambatta Securities has given Buy recommendation for Share India Securities with a target price of Rs. 677 in its research report issued on Aug 03, 2021
Khambatta Securities’ research report on Share India Securities
Share India Securities (SIS) doubled the topline and reported still stronger profit growth in 1Q FY22 on a y-o-y basis. The healthy margin expansion is primarily attributable to operating leverage arising out of a lower increase in employee benefit expense relative to the revenue growth. ROA and ROE continues to witness a rising trend based on FY numbers as the company registered 53% CAGR in consolidated PAT in the 5 years to FY21. Management has pursued a combination of organic and inorganice expansion to drive business growth as it looks to employ the same strategy to enter the retail segment of the market by leveraging its robust technology platform and strong service experience in the HNI segment.
Basis expectations of robust growth and operating leverage-driven margin expansion, we revise our forecasts upward and reiterate a BUY rating with a price target of Rs 677 (at 12.0x FY23E EPS) and an upside of 23% from current levels.