IIFL Analysts have the following recommendation on ICICI Securities Ltd,
At its analyst day, ISEC presented its multifaceted product propositions and enhanced digital capabilities, including its revamped mobile applications and website. Over FY21-25, management has set a target of: a) capturing >10% market share in incremental customer additions, b) increasing customer assets to Rs10tm (Rs4.4tm currently), and c) reducing cost-to-income ratio to <40% (~45% in FY21).
ISEC will also look to further diversify its revenue base and reduce dependence on broking income, by having 3-4 significant product lines. ISEC remains the best play on financialisation of savings and increasing retail participation in equity. ROEs should remain healthy at 45%+. We value the stock at 25x FY23ii EPS or Rs890/share.
