Motilal Oswal has given Buy recommendation for ICICI Securities recommended buy rating on the stock with a target price of Rs 780 in its research with a target price of Rs. 780 in its research report issued on Apr 21, 2022

Motilal Oswal’s research report on ICICI Securities

ISEC witnessed a 6% YoY and 7% QoQ decline in revenue from the Retail Broking segment. For the eighth consecutive quarter, revenue has been in the INR3-3.5b range. Its customer count saw a 1.5x jump. While its Prime subscription fees has scaled up (up 71% YoY), its share in overall revenue is small. Revenue for the Issuer Services segment fell 41% QoQ to INR649m. Overall revenue grew 20% YoY to INR8.9b (inline) as the negative surprise in Issuer Services was offset by a beat in the Distribution segment. PAT at INR3.8b (+42% YoY) was 6% lower than our estimate, while C/I ratio rose 410bp QoQ to 49% on higher marketing costs and technology investments. We have lowered our FY23/FY24 EPS estimate by 10% each, to factor in weaker-than-expected traction in the Broking segment, a slowdown in the Issuer Services segment, the impact of a run-down in the ESOP funding book, and higher costs.

Outlook

We maintain our Buy rating on the stock with a revised TP of INR780 (based on 17x FY24E P/E), implying a potential upside of 24%.

More Info

At 16:01 hrs ICICI Securities Ltd. was quoting at Rs 597.10, down Rs 32.05, or 5.09 percent.

It has touched an intraday high of Rs 615.00 and an intraday low of Rs 580.35.

It was trading with volumes of 184,738 shares, compared to its thirty day average of 24,878 shares, an increase of 642.57 percent.

In the previous trading session, the share closed up 0.79 percent or Rs 4.95 at Rs 629.15.

The share touched its 52-week high Rs 895.60 and 52-week low Rs 432.15 on 13 October, 2021 and 22 April, 2021, respectively.

Currently, it is trading 33.33 percent below its 52-week high and 38.17 percent above its 52-week low.

Market capitalisation stands at Rs 19,267.30 crore.

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