Buy ICICI Securities, target price Rs 856: Axis Securities

Axis Securities has buy call on ICICI Securities with a target price of Rs 856. The current market price of ICICI Securities Ltd. is Rs 742.1. Time period given by analyst is one year when ICICI Securities Ltd. price can reach defined target.

ICICI Securities Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 23619.38 Crore) operating in Financial Services sector.

ICICI Securities Ltd. key Products/Revenue Segments include Income From Brokerage & Commission, Other Services, Interest, Income From Sale Of Share & Securities, Dividend for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 941.92 Crore, up 9.97 % from last quarter Total Income of Rs 856.56 Crore and up 51.93 % from last year same quarter Total Income of Rs 619.97 Crore. Company reported net profit after tax of Rs 380.35 Crore in latest quarter.

Investment Rationale
The company’s improving granularity of revenues along with an increasing share of variable expenses will help ISEC remain fairly insulated from volatility across market cycles. Despite some moderation in the favourable market conditions, the brokerage believes the business model of ISEC will help it remain a formidable player in the intensely competitive landscape along with enabling it to gain market share across verticals. It continues to like ISEC for its superior ROE profile, better brand recall, and innovative product proposition across customer segments.

Promoter/FII Holdings
Promoters held 74.89 per cent stake in the company as of 31-Dec-2021, while FIIs owned 10.1 per cent, DIIs 4.27 per cent.