KR Choksey has given Buy recommendation for ICICI Securities with a target price of Rs. 935 in its research report issued on Apr 22, 2022

KR Choksey’s research report on ICICI Securities

Total revenue reported at INR 8,915Mn (-5.3% qoq, +20.6% yoy) due to lowered revenue by 41% qoq of issuer and advisory business segment. The impact was on account of postponement of multiple primary issues due to geopolitical tensions. Investment banking revenue stood at INR 649 Mn (+22% yoy). Revenue from Equities and Allied Business segment reported at INR 6,269Mn (+5% qoq / +30% yoy). Distribution income continued to grow at INR 1,686Mn (+3% qoq / +21% yoy). EBITDA reported at INR 5,623Mn (-7.6% qoq/ +15.7% yoy). EBITDA margin stood at 63.1% (-152bps qoq / -264bps yoy), as cost to income ratio stood at 49.1% (+319bps qoq/ +877bps yoy). The proportion of Variable expenses stood at 58% in Q4FY22 with an increase from the levels of 28% in Q1FY20. PBT reported at INR 4,539Mn (-11.0% qoq / +2.9% yoy). PBT margin stood at 50.9% (-323bps qoq / -877bps yoy) on account of higher interest expenses. PAT reported at INR 3,388Mn (-10.9% qoq / +2.8% yoy). PAT margin stood at 38.0% (-239bps qoq / -656bps yoy). EPS stood at INR 10.5.


We roll forward our estimates to FY24 and our EPS estimate for FY23E/FY24E at INR 42.9 and INR 48.7, respectively. It is currently trading at P/E multiple of 13.9x / 12.3x to FY23E/FY24E EPS, respectively. We assign retain our target of INR 935/share (PE of 19.2x to FY24E EPS) and maintain our BUY rating on the stock (an upside of 56.6% over CMP).

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