Buy Pune E-Stock Broking; target of Rs 230: Khambatta Securities

Khambatta Securities is bullish on Pune E-Stock Broking has recommended buy rating on the stock with a target price of Rs 230 in its research report dated June 24, 2024.

Broker Research

June 27, 2024 / 11:26 IST

Buy

Khambatta Securities' research report on Pune E-Stock Broking

Pune E-Stock Broking Limited (PESB) is a corporate broking firm offering equity broking, currency trading, depository participant services, mutual fund distribution, corporate deposit, and margin trading facility. With the emergence of internet-based trading (IBT), PESB prioritised technology adoption and innovation which not only matched its clients’ evolving needs but also established the company as an industry leader in digital solution adoption. The Indian equity market is expanding in terms of listed companies and market capitalisation, creating more opportunities for brokerage firms. With increasing retail penetration, there is an immense potential to benefit from the untapped market. The Indian economy has fared better than those of advanced and other developing markets in uncertain and difficult times. Adoption of industry best practices and enhanced market liquidity is boosting and deepening the capital market. The Indian stock market is witnessing a surge in participation from individual investors, prompting stricter regulations from SEBI to protect their interests. These new guidelines are acting as a catalyst for increased retail investor participation and benefitting early adopters of technology like PESB which has successfully streamlined its operations to effortlessly adhere to the evolving regulatory environment.

Outlook

The PESB stock is currently trading at an attractive FY26E forward PE of 10.6x. Assigning a target PE multiple of 15x FY26E EPS, we value PESB at Rs 230, informing a BUY rating with a 42% upside potential.

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