Mehabe score: 6 G Factor: 5 Piotski Score: 5 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 5.
Description
ICICI Securities is engaged in the business of broking (institutional and retail), distribution of financial products, merchant banking and advisory services.(Source : 201903 Annual Report Page No: 162)Site:ISECMain Symbol:ISEC
Stock trades at 760.0, above its 50dma 632.47. It also trades above its 200dma 511.03. The stock remains bullish on techicals
The 52 week high is at 802.70 and the 52week low is at 357.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has a good return on equity (ROE) track record: 3 Years ROE 58.50%
– has been maintaining a healthy dividend payout of 63.99%
Weakness
– Stock is trading at 13.46 times its book value
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 26.3x. SBI Cards trades at the industry’s max P/E of 92.21x. ISEC trades at a P/E of 23.0x
– Industry’s mean G-Factor is 4.4 while the mean Piotski score is 6.0. ISEC has a G-Factor of 5 and Piotski scoreof 5.
– Average 1 month return for industry is 2.1%. The max 1- month return was given by ICICI Securities: a return of 21.25 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 745.0 cr compared to Rs 546.0 cr for period ended Jun 2020, a rise of 36.4%
Operating Profits reported at Rs 470.0 cr for period ended Jun 2021 vis-vis 295.0 for period ended Jun 2020 .
Operating Margins expanded 905.8 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 9.63 compared to Rs 10.22 for previous quarter ended Mar 2021 and Rs 5.99 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2785.0 cr for period ended TTM vis-vis sales of Rs 2586.0 cr for the period ended Mar 2021, a growth of 7.1%. The 3 year sales cagr stood at 17.3%.
Operating margins expanded to 63.0% for period ended TTM vis-vis 62.0% for period ended Mar 2021, expansion of 100.0 bps.
Net Profit reported at Rs 1185.0 cr for period ended TTM vis-vis sales of Rs 1068.0 cr for the period ended Mar 2021, rising 9.9%.
Company recorded a healthy Net Profit CAGR of 34.1% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -1610.0 cr for period ended Mar 2021 vis-vis Rs -1878.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 70.0% compared to 59.0% over the last 3 Years. – The stock has given a return of 43% on a 1 Year basis vis-vis a return of 36% over the last 3 Years. – The compounded sales growth on a TTM bassis is 50% vis-vis a compounded sales growth of 12% over the last 3 Years. – The compounded profit growth on a TTM basis is 97% vis-vis a compounded profit growth of 24% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 5.68% vis-vis 3.74% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 12.06% vis-vis 12.23% for Mar 2021
Conclusion
– is expected to give good quarter
– has a good return on equity (ROE) track record: 3 Years ROE 58.50%
– has been maintaining a healthy dividend payout of 63.99% – Stock is trading at 13.46 times its book value
– might be capitalizing the interest cost
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 632.47 and is trading at 760.0, thus bullish price action wise.
