Elara Capital initiates 'buy' on ICICI Securities, target price Rs 610

Elara Capital has initiated coverage of ICICI Securities with a buy rating and set a target price of Rs 610 as against current price of Rs 505 based on abnormal earnings growth (AEG) model which implies a PE of 26. The brokerage sees moat in the business, reflective in its wide distribution, brand name, strong balance sheet and diversified revenue streams coupled with strong execution. High free cash flow generation, with a steady payout of 60% plus, strong balance sheet and parent backing should provide additional comfort to shareholders, said the brokerage.