Hold IIFL Securities, target price Rs 65: ICICI Direct

ICICI Direct has hold call on IIFL Securities with a target price of Rs 65. The current market price of IIFL Securities is Rs 59.19.

IIFL Securities, incorporated in the year 1996, is a Small Cap company (having a market cap of Rs 1778.18 Crore) operating in Financial Services sector.

IIFL Securities key Products/Revenue Segments include Fees & Commission Income and Interest for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 405.20 Crore, up 16.78 % from last quarter Total Income of Rs 346.99 Crore and up 11.92 % from last year same quarter Total Income of Rs 362.05 Crore. Company has reported net profit after tax of Rs 86.40 Crore in latest quarter.

The company’s top management includes Mr.R Venkataraman, Mr.Narendra Deshmal Jain, Mr.Anand Shailesh Bathiya, Mr.Viswanathan Krishnan, Mr.Shamik Das Sharma, Ms.Rekha Warriar. Company has V Sankar Aiyar & Co. as its auditors. As on 31-03-2023, the company has a total of 31 Crore shares outstanding.

Investment Rationale
Led by market cyclicality and continuous regulation brokerage stocks have suffered. Accordingly, IIFL Sec’s share price has corrected by15% in the last six months. The management’s change in strategy in the last couple of quarters to focus on affluent customers and not just chase client addition seems to be working well. However, sustainability of volume growth and accordingly revenue growth needs to be seen.

Promoter/FII Holdings
Promoters held 31.14 per cent stake in the company as of 31-Mar-2023, while FIIs owned 16.48 per cent, DIIs 3.2 per cent.