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KR Choksey
ICICI Sec (Buy)
Target ₹565
CMP: ₹468.85
Headquartered at Mumbai, ICICI Securities (ISEC) has presence over 70+ cities in India besides wholly owned subsidiaries having presence in Singapore and New York. It serves diverse client base of corporates, financial institutions, high net worth Individuals (HNIs) and retail investors.
It offers wide range of financial services under the segments of broking, distribution of financial products, wealth management and investment banking. As many as 156 ICICI direct branches and its strong network of 13,600+ business partners (70 per cent YoY) has supported robust client acquisition.
Low brokerages, digital/secured investment mechanism and easy availability of information has well positioned broking industry in the financial market. ISEC recorded exceptional growth of 71.6 per cent YoY in H1-FY21 brokerage revenue. Around 63 lakh new demat accounts added in H1-FY21 (130 per cent YoY) as new investors entered the stock market .
Industry average daily turnover has grown at about 47 per cent during FY14-20. ISEC has a vision to become a digital financial supermarket of all possible investments in the market. ISEC continues to manage its costs efficiently, resulting in strong operating leverage and adequate free cash flow generation. Consistent dividend payout ensures healthy shareholder returns. Asset light business model, strong brand, and leading market share makes a good investment case.
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