Buy ICICI Securities; target of Rs 530: Motilal Oswal

Motilal Oswal is bullish on ICICI Securities recommended buy rating on the stock with a target price of Rs 530 in its research report dated April 20, 2023.

Broker Research

April 20, 2023 / 17:42 IST

Buy

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bselive
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Motilal Oswal's research report on ICICI Securities

ICICI Securities (ISEC)’s overall revenue declined 1% YoY to INR8.9b in 4QFY23, in line with our estimate, as the weakness in retail brokerage and IB revenue was offset by strong interest rate-linked revenue (MTF and Treasury book) and distribution income. ISEC’s retail broking revenue declined 13% YoY to INR3.2b. However, the decline in overall retail equity segment revenue was restricted to 6% thanks to 16% YoY growth in allied revenue. The issuer services segment’s revenue dipped 80% YoY to INR127m. PAT stood at INR2.6b (-23% YoY), 5% lower than our estimate, The C/I ratio increased to 60.1% (v/s our estimate of 58.7%). This includes a one-time provision of INR161m pertaining to the reversal of penalties charged to customers in lieu of the peak margin shortfall. The adjusted C/I ratio was at 58.3%, better than our estimate of 58.7%. ISEC’s revenue for FY23 stood at INR34.3b (flat YoY) and PAT at INR11.1b (- 31% YoY).

Outlook

We maintain our BUY rating with a TP of INR530 (premised on 12x FY25E P/E).

For all recommendations report, click here