NSEI:ISEC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.2%

ISEC

-1.1%

IN Capital Markets

-1.3%

IN Market


1 Year Return

43.5%

ISEC

-6.5%

IN Capital Markets

-2.5%

IN Market

Return vs Industry: ISEC exceeded the Indian Capital Markets industry which returned -4.7% over the past year.

Return vs Market: ISEC exceeded the Indian Market which returned -1.4% over the past year.


Shareholder returns

ISECIndustryMarket
7 Day4.2%-1.1%-1.3%
30 Day0.2%-1.5%1.6%
90 Day2.2%1.1%6.0%
1 Year45.6%43.5%-5.2%-6.5%-0.7%-2.5%
3 Yearn/a-40.1%-42.3%-4.5%-9.2%
5 Yearn/a42.0%31.3%39.6%29.1%

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?

24.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ISEC (₹465.1) is trading above our estimate of fair value (₹214.55)

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 (24.1x) compared to the IN Capital Markets industry average (15.2x).

PE vs Market: ISEC is poor value based on its PE Ratio (24.1x) compared to the Indian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: ISEC is poor value based on its PEG Ratio (3.9x)


Price to Book Ratio

PB vs Industry: ISEC is overvalued based on its PB Ratio (10.7x) 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 3 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ISEC's forecast earnings growth (6.2% per year) is below the savings rate (7.2%).

Earnings vs Market: ISEC's earnings (6.2% per year) are forecast to grow slower than the Indian market (25.7% per year).

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

Revenue vs Market: ISEC's revenue (8.2% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: ISEC's revenue (8.2% 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 (49.1%).


Next Steps

Past Performance

How has ICICI Securities performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ISEC has high quality earnings.

Growing Profit Margin: ISEC's current net profit margins (35%) are higher than last year (29.2%).


Past Earnings Growth Analysis

Earnings Trend: ISEC's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: ISEC's earnings growth over the past year (32%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: ISEC earnings growth over the past year (32%) exceeded the Capital Markets industry -6.2%.


Return on Equity

High ROE: Whilst ISEC's Return on Equity (44.17%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is ICICI Securities's financial position?


Financial Position Analysis

Short Term Liabilities: ISEC's short term assets (₹41.8B) exceed its short term liabilities (₹27.2B).

Long Term Liabilities: ISEC's short term assets (₹41.8B) exceed its long term liabilities (₹14.7B).


Debt to Equity History and Analysis

Debt Level: ISEC is debt free.

Reducing Debt: ISEC has no debt compared to 5 years ago when its debt to equity ratio was 58.5%.

Debt Coverage: ISEC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ISEC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

3.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ISEC's dividend (3.17%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: ISEC's dividend (3.17%) is in the top 25% of dividend payers in the Indian market (2.31%)


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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57%), 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 (70.7% payout ratio).


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Vijay Chandok (52 yo)

1.42yrs

Tenure

₹51,070,056

Compensation

Mr. Vijay Kumar Chandok, B.Tech, MMS, 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 ...


CEO Compensation Analysis

Compensation vs Market: Vijay's total compensation ($USD688.28K) is about average for companies of similar size in the Indian market ($USD567.07K).

Compensation vs Earnings: Insufficient data to compare Vijay's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Vijay Chandok
MD, CEO & Additional Director1.42yrs₹51.07mno data
Harvinder Jaspal
Chief Financial Officerno data₹12.80mno data
Ajay Saraf
Head of Investment Banking & Equities Division and Executive Director9.42yrs₹36.79m0.0077%
₹ 12.0m
Raju Nanwani
Senior VPno data₹10.60mno data
Subhash Kelkar
Chief Technology & Digital Officerno datano datano data
Sohandeep Hattar
Head of Human Resourcesno datano datano data
Anupam Guha
Head of Private Wealth Management11.92yrsno datano data
Mridul Mehta
Executive Vice Presidentno datano datano data
Jaideep Goswami
Head of Institutional Equities9.08yrsno datano data
L. Govind
Head of Structured Products & Corporate Debt Restructuring8.42yrsno datano data
Gautam Benjamin
EVP & Head of Financial Sponsors Group5.42yrsno datano data
Rikin Sanghvi
SVP & Head of Pharmaceuticals5.42yrsno datano data

6.9yrs

Average Tenure

52yo

Average Age

Experienced Management: ISEC's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vijay Chandok
MD, CEO & Additional Director1.42yrs₹51.07mno data
Ajay Saraf
Head of Investment Banking & Equities Division and Executive Director9.42yrs₹36.79m0.0077%
₹ 12.0m
Subrata Mukherji
Independent Director2.92yrs₹2.14mno data
Narayanan Kannan
Executive Director of ICICI Bankno datano datano data
Vijayalakshmi Iyer
Independent Director2.92yrs₹2.11mno data
Sriram Iyer
Chairman of ICICI Securities Holding Inc4.25yrsno datano data
Pramod Rao
Non-executive Director2yrsno datano data
Anup Bagchi
Non-executive Director2yrs₹8.50m0.00060%
₹ 936.4k
Vinod Dhall
Independent Chairman of the Board2yrs₹1.91mno data
Ashvin Parekh
Independent Director4.17yrs₹2.26mno data

2.9yrs

Average Tenure

53.5yo

Average Age

Experienced Board: ISEC's board of directors are not considered experienced ( 2.9 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.


Recent Insider Transactions

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: ₹156.065b
  • Shares outstanding: 322.18m
  • 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. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 12:43
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.