Buy IIFL Securities, target price Rs 135.5: HDFC Securities

HDFC Securities has buy call on IIFL Securities with a target price of Rs 135.5.The current market price of IIFL Securities Ltd. is Rs 114.8.

Time period given by analyst is six months when IIFL Securities Ltd. price can reach defined target.

IIFL Securities Ltd., incorporated in the year 1996, is a Small Cap company (having a market cap of Rs 3465.80 Crore) operating in Financial Services sector.


IIFL Securities Ltd. key Products/Revenue Segments include Fees & Commission Income and Interest for the year ending 31-Mar-2021.


Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 268.06 Crore, up 4.63 % from last quarter Total Income of Rs 256.19 Crore and up 50.35 % from last year same quarter Total Income of Rs 178.29 Crore. Company reported net profit after tax of Rs 68.81 Crore in latest quarter.

Investment Rationale
The brokerage believes that the sale of land bank and continuous rise in customer acquisition, strong Investment Banking pipeline, growing financial products distribution revenue especially from Mutual fund will be the key triggers for the stocks re-rating.

Promoter/FII Holdings
Promoters held 31.41 per cent stake in the company as of 30-Jun-2021, while FIIs owned 16.08 per cent, DIIs 4.26 per cent.