ICICI Direct's research report on IIFL Securities
IIFL Securities reported a steady performance amid a healthy pace of client acquisition, increase in cash average daily turnover (ADTO). Revenue was steady at Rs 178.3 crore with retail broking seeing some traction offset by fall in institutional, distribution income. Retail brokerage saw 7% YoY, 9% QoQ growth at Rs 92 crore, on the back of strong customer acquisition at 75900, improvement in cash ADTO. Cash ADTO surged to Rs 1540 crore vs. Rs 1270 crore in Q4FY20. Lockdown impacted distribution of financial products and IB, which were down 29%, 56% to Rs 21.4 crore, Rs 1.2 crore, respectively. Institutional broking performance was muted with 16% YoY de-growth to Rs 28.5 crore. Lower opex supported profit, up 11% QoQ to Rs 41.5 crore.
Given a beneficiary of strong growth in clients and cash ADTO witnessed in industry, we maintain BUY rating with TP at Rs 46, valuing the stock at ~6.8x FY22E EPS.
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