NSEI:ISEC

Stock Analysis Report

Executive Summary

ICICI Securities Limited provides institutional and retail broking, merchant banking, and advisory services to corporates, financial institutions, high net-worth individuals, and retail investors in India.


Snowflake Analysis

Proven track record with moderate growth potential.


Similar Companies

Share Price & News

How has ICICI Securities's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ISEC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.8%

ISEC

-1.4%

IN Capital Markets

-3.5%

IN Market


1 Year Return

144.8%

ISEC

10.7%

IN Capital Markets

5.2%

IN Market

Return vs Industry: ISEC exceeded the Indian Capital Markets industry which returned 10.7% over the past year.

Return vs Market: ISEC exceeded the Indian Market which returned 5.2% over the past year.


Shareholder returns

ISECIndustryMarket
7 Day-3.8%-1.4%-3.5%
30 Day5.5%-0.03%-3.9%
90 Day41.5%10.2%-2.1%
1 Year154.3%144.8%12.4%10.7%7.2%5.2%
3 Yearn/a-5.1%-8.8%18.9%12.4%
5 Yearn/a13.0%5.6%29.4%17.7%

Price Volatility Vs. Market

How volatile is ICICI Securities's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ICICI Securities undervalued compared to its fair value and its price relative to the market?

31.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ISEC (₹491.65) is trading above our estimate of fair value (₹198.91)

Significantly Below Fair Value: ISEC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ISEC is poor value based on its PE Ratio (31.2x) compared to the Capital Markets industry average (11x).

PE vs Market: ISEC is poor value based on its PE Ratio (31.2x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: ISEC is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ISEC is overvalued based on its PB Ratio (14.7x) compared to the IN Capital Markets industry average (0.5x).


Next Steps

Future Growth

How is ICICI Securities forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

17.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISEC's forecast earnings growth (17.3% per year) is above the savings rate (6.5%).

Earnings vs Market: ISEC's earnings (17.3% per year) are forecast to grow slower than the Indian market (20.4% per year).

High Growth Earnings: ISEC's earnings are forecast to grow, but not significantly.

Revenue vs Market: ISEC's revenue (10.5% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: ISEC's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ISEC's Return on Equity is forecast to be very high in 3 years time (48.5%).


Next Steps

Past Performance

How has ICICI Securities performed over the past 5 years?

13.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISEC has high quality earnings.

Growing Profit Margin: ISEC's current net profit margins (32.4%) are higher than last year (29.8%).


Past Earnings Growth Analysis

Earnings Trend: ISEC's earnings have grown by 13.3% per year over the past 5 years.

Accelerating Growth: ISEC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ISEC had negative earnings growth (-3.2%) over the past year, making it difficult to compare to the Capital Markets industry average (-5.6%).


Return on Equity

High ROE: ISEC's Return on Equity (47.2%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ICICI Securities's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ISEC has a low level of unsold assets or inventory.

Debt Coverage by Assets: ISEC's debt is covered by short term assets (assets are 3.1x debt).


Financial Institutions Analysis

Asset Level: ISEC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ISEC has a sufficient allowance for bad loans.

Low Risk Liabilities: ISEC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ISEC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ISEC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ISEC has an appropriate level of bad loans.


Next Steps

Dividend

What is ICICI Securities's current dividend yield, its reliability and sustainability?

2.02%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%0.6%markettop25%2.7%industryaverage1.7%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: ISEC's dividend (2.02%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: ISEC's dividend (2.02%) is low compared to the top 25% of dividend payers in the Indian market (2.67%).


Stability and Growth of Payments

Stable Dividend: ISEC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ISEC's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.1%), ISEC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ISEC's dividends in 3 years are forecast to be covered by earnings (61.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Vijay Chandok (51yo)

0.8yrs

Tenure

0

Mr. Vijay Kumar Chandok has been Managing Director, Chief Executive Officer and Additional Director of ICICI Securities Ltd. since May 07, 2019. Mr. Chandok served as an Executive Director of ICICI Bank Li ...


Leadership Team

NamePositionTenureCompensationOwnership
Harvinder Jaspal
Chief Financial Officer0yrs₹12.90mno data
Ajay Saraf
Head of Investment Banking & Equities Division and Executive Director8.8yrs₹33.30m0.000030% 48.3k
Raju Nanwani
Senior VP0yrs₹10.20mno data
Vijay Chandok
MD, CEO & Additional Director0.8yrsno datano data
Sohandeep Hattar
Head of Human Resources0yrsno data0.000030% 48.3k
Anupam Guha
Head of Private Wealth Management11.3yrsno datano data
Mridul Mehta
Executive Vice President0yrsno datano data
Jaideep Goswami
Head of Institutional Equities8.4yrsno datano data
L. Govind
Head of Structured Products & Corporate Debt Restructuring7.8yrsno datano data
Gautam Benjamin
EVP & Head of Financial Sponsors Group4.8yrsno datano data

7.8yrs

Average Tenure

51yo

Average Age

Experienced Management: ISEC's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ajay Saraf
Head of Investment Banking & Equities Division and Executive Director8.8yrs₹33.30m0.000030% 48.3k
Vijay Chandok
MD, CEO & Additional Director0.8yrsno datano data
Subrata Mukherji
Independent Director2.3yrs₹1.15mno data
Narayanan Kannan
Executive Director of ICICI Bank0yrsno datano data
Vijayalakshmi Iyer
Independent Director2.3yrs₹872.74kno data
Sriram Iyer
Chairman of ICICI Securities Holding Inc3.6yrsno datano data
Pramod Rao
Non-executive Director1.3yrsno datano data
Anup Bagchi
Non-executive Director1.3yrs₹8.50m0.00060% 965.7k
Vinod Dhall
Independent Chairman of the Board1.3yrs₹1.61mno data
Ashvin Parekh
Independent Director3.5yrs₹1.86mno data

2.3yrs

Average Tenure

52.5yo

Average Age

Experienced Board: ISEC's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ICICI Securities Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ICICI Securities Limited
  • Ticker: ISEC
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: ₹160.958b
  • Shares outstanding: 322.14m
  • Website: https://www.icicisecurities.com

Number of Employees


Location

  • ICICI Securities Limited
  • ICICI Centre
  • H.T. Parekh Marg
  • Mumbai
  • Maharashtra
  • 400020
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ISECNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2018
541179BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2018

Biography

ICICI Securities Limited provides institutional and retail broking, merchant banking, and advisory services to corporates, financial institutions, high net-worth individuals, and retail investors in India. It operates through three segments: Investment & Trading, Broking & Commission, and Advisory Services. The company operates ICICIdirect.com, an online broking platform to invest in equity, derivatives, currency futures, mutual funds, and other services, such as fixed deposits, loans, tax services, new pension systems, and life and general insurance products, as well as access to research information, stock picks, and mutual fund recommendations. It also provides private wealth management services, such as investment banking, investment advisory, and portfolio management services, as well as alternative investment funds, market-linked debentures, etc.; and operates approximately 200 ICICIdirect branches in 75 cities. In addition, the company offers equity capital market products, including initial public offerings (IPOs), rights issues, share buyback, delisting, open offers, and equity private placements; advisory services for acquisitions, divestitures, joint ventures, corporate restructurings, recapitalizations, spin-offs, mergers, and exchange offers; and private equity advisory services on various products, including mezzanine and private equity financing, secondary sale transactions, pre-IPO deals, and preferential allotments by listed companies. ICICI Securities Limited was formerly known as ICICI Securities and Finance Company Limited and changed its name to ICICI Securities Limited in April 2003. The company was incorporated in 1995 and is headquartered in Mumbai, India. ICICI Securities Limited is a subsidiary of ICICI Bank Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 13:10
End of Day Share Price2020/02/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.