Buy ICICI Securities; target of Rs 578: KR Choksey
KR Choksey is bullish on ICICI Securities has recommended buy rating on the stock with a target price of Rs 578 in its research report dated January 27, 2021.
February 02, 2021 / 12:37 PM IST
KR Choksey's research report on ICICI Securities
Total revenues reported at INR 6.2bn (-8.9% qoq, 46.9% yoy) as against INR 6.8bn / INR 4.2bn in Q2FY21 and Q3FY20, respectively. Revenue de-growth in segment ‘equities and allied activities’ was due to new margin norms which came in force from Dec’20. Distribution revenue grew up to INR 10.8bn (+9% qoq). EBITDA reported at INR 3.97bn (-4.1% qoq/ 79.3% yoy); however, EBITDA margin improved up to 64% (+319bps qoq / +1158bps yoy) on the back of reduction in employee expenses (-27% yoy / -2.3% yoy). Cost to income ratio has been improved up to 42.3% (-299bps qoq, -1398bps yoy). PBT reported at INR 3.6 bn (-3.9% qoq / 93.3% yoy). PBT margin reported at 57.7% (+300bps qoq / +1386bps yoy). PAT reported at INR 2.7 bn (-4.0% qoq / 94.6% yoy). PAT margin reported at 43.1% (+220bps qoq / +1056bps yoy). ROE stood at 71% (-500bps qoq / +2000 bps).
We assign P/E multiple of 18x to our FY23E EPS of INR 32.1 to arrive at target price of INR 578/share (Previous target price: INR 565/share). We maintain our BUY recommendation on the stock.
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