Motilal Oswal is bullish on ICICI Securities recommended buy rating on the stock with a target price of Rs 625 in its research report dated July 22, 2020.
Motilal Oswal 's research report on ICICI Securities
ICICI Securities (ISEC) delivered 47% YoY growth in PBT to INR2.6b (15% beat). However, lower tax rate YoY (25.6% vs 35.4% a year ago) led to PAT growth of 70% to INR1.9b. The quarter was characterized by strong growth in the brokerage business (+24% QoQ and +62% YoY), partly offset by muted performance in distribution (-20% QoQ and -30% YoY). Investment banking revenues were healthy at INR220m (+34% YoY and more than doubled QoQ). C/I ratio was down 370bp YoY to 52.5% driven largely by operating leverage. On back of continued momentum in equity brokerage business and healthy pipeline in investment banking business, we have upgraded earnings by ~17/13% for FY21/22. Buy with target price of INR625 (24x FY22 EPS).
We increase our estimates by ~17/13% for FY21/22. Maintain Buy with a TP of INR625 (24x FY22E EPS).
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