HIGHLIGHTs:
- ICICI Securities – one of the few companies which gave extraordinary results for Q4FY20 when most of the company’s revenue and profit declined a lot. Revenue grew by 18% and Profit Grew by 28%.
- The company has been rated as the number 1 Equity Franchise.
- The company is growing extraordinarily in the broking business. Brokerage Revenue in Q4FY20 grew by 26% YoY. India’s second-largest broker with active clients. Operational accounts CAGR growth in 6 years 12% from 2.5mn to 4.7mn.
- Not only in the broking business, but the company is also ranked among the largest wealth manager in the country with AUM over Rs 830 bn.
- MAJOR TRIGGER is the lost trust in small brokers after the episode of Karvy and India Nivesh which is helping them in three ways:
1) Existing clients shifting to big players
2)New Clients are opening accounts in Big names only.
3)Also, the surge has been seen in the opening of new broking accounts
- The company enjoys trust among clients, around 40% of active clients are with the company for more than 14 years and 65% of revenue has come from clients who have been with the company for more than 5 years.
FUNDAMENTALS
- Profit grew by 60% in 3 years from 339cr to 542cr.
- ROCE and ROE one of the best around 48%.
- Trading at a PE of 24, growth and business can give a much higher PE.
- The company has a dividend yield of around 2.5%.
- Promoter holding around 79% and Institution holding 14.6%.
- Interest Coverage ratio stands at 9.7 times.
Arman’s Linkedin Profile
Cover Image: Facebook
