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.
The last earnings update was 65 days ago.
Discounted Cash Flow Calculation for NSEI:ISEC using Excess Returns Model Model
The calculations below outline how an intrinsic value for ICICI Securities is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
ICICI Securities's earnings available for a low price, and how does
this compare to other companies in the same industry?
ICICI Securities's earnings are expected to grow by 11.8% yearly, however this is not considered high growth (20% yearly).
ICICI Securities's revenue is expected to grow by 10.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
ICICI Securities's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
ICICI Securities's finances.
The net worth of a company is the difference between its assets and liabilities.
ICICI Securities is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
ICICI Securities's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
ICICI Securities's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 9.5x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Vijay Kumar Chandok has been Managing Director, Chief Executive Officer and Additional Director of ICICI Securities Ltd. since May 07, 2019. Mr. Chandok has been an Executive Director of ICICI Bank Limited since July 28, 2016. Mr. Chandok’s responsibilities include SME business, Commercial banking and International Banking Group of ICICI Bank. Mr. Chandok joined the ICICI Group in 1993. In his 23 years with the ICICI Group, he has worked in corporate banking, prior to leading the SME business and the International Banking Group. He was also the Head of ICICI Bank’s Retail Assets and Rural & Agri Banking Group and Vice Chairman of ICICI Home Finance Company Limited from 2008 to 2009. He also led the integration of the erstwhile Sangli Bank with ICICI Bank. He served as Non-Executive Director at ICICI Bank UK PLC until May 6, 2019 and served as a Director at ICICI Bank Canada until April 2019. He also chairs the ICICI Investment Management Company Limited which managed the Emerging India Fund and Private Equity Fund. In the International Banking space (IBG), Mr. Chandok has been focusing on strengthening the Bank’s franchise across overseas locations (16 locations including subsidiaries in UK & Canada) through leveraging the economic corridors between India and the rest of the world, initiating and developing banking relationships with MNC corporates and building a stable and diversified international funding base. He holds a Master’s degree in Management Studies from Narsee Monjee Institute of Management Studies, Mumbai. He also holds a Bachelor of Technology in Mechanical Engineering from the Indian Institute of Technology (Banaras Hindu University), Varanasi (formerly IT-BHU).
Insufficient data for Vijay to compare compensation growth.
Insufficient data for Vijay to establish whether their remuneration is reasonable compared to companies of similar size in India.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the ICICI Securities management team is over 5 years, this suggests they are a seasoned and experienced team.
Chief Financial Officer
Senior VP & Company Secretary
Head of Investment Banking & Equities Division and Executive Director
MD, CEO & Additional Director
Head of Human Resources
Head of Private Wealth Management
Executive Vice President
Head of Institutional Equities
Head of Structured Products and Corporate Debt Restructuring
EVP and Head of Financial Sponsors Group
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the ICICI Securities board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman of the Board
Head of Investment Banking & Equities Division and Executive Director
MD, CEO & Additional Director
Chairman of ICICI Securities Holding Inc
Chairman of ICICI Securities Inc
Non-Executive Additional Director
Who owns this company?
Recent Insider Trading
No 3 month individual insider trading information.
Those Who Purchased ICICI Securities (NSE:ISEC) Shares A Year Ago Have A 36% Loss To Show For It
Investors in ICICI Securities Limited (NSE:ISEC) have tasted that bitter downside in the last year, as the share price dropped 36%. … Unhappily, ICICI Securities had to report a 12% decline in EPS over the last year. … NSEI:ISEC Past and Future Earnings, June 6th 2019 It might be well worthwhile taking a look at our free report on ICICI Securities's earnings, revenue and cash flow.
Here's What ICICI Securities Limited's (NSE:ISEC) P/E Is Telling Us
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … ICICI Securities has a price to earnings ratio of 14.86, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Help shape the future of investing tools and you could win a $250 gift card! … In the case of ICICI Securities Limited (NSE:ISEC), there's … that has been able to sustain great financial health over the past.
Here's What ICICI Securities Limited's (NSE:ISEC) P/E Ratio Is Telling Us
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … ICICI Securities has a price to earnings ratio of 14.44, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
ICICI Securities Limited (NSE:ISEC): The Best Of Both Worlds
ICICI Securities Limited (NSE:ISEC) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of ISEC, it
Should You Be Tempted To Sell ICICI Securities Limited (NSE:ISEC) Because Of Its PE Ratio?
Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind. … I will deconstruct the P/E ratio and highlight what you need to be careful of when using the P/E ratio … Breaking down the Price-Earnings ratio
Should ICICI Securities Limited's (NSE:ISEC) Recent Earnings Worry You?
When ICICI Securities Limited's (NSE:ISEC) announced its latest earnings (30 June 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were ICICI Securities's average earnings over the past couple of years, and its industry performance. … Did ISEC's recent earnings growth beat the long-term trend and the industry.
Is ICICI Securities Limited (NSE:ISEC) Still A Cheap Financial Stock?
operates in the capital markets industry, … Many aspects of banking and capital markets are being attacked by new competitors, whose key advantage is a leaner and technology-enabled operating model, allowing them to scale at a faster rate and meet changing consumer needs … Financial services analysts are forecasting for the entire industry,
Should ICICI Securities Limited (NSE:ISEC) Be Part Of Your Dividend Portfolio?
Recently, ICICI Securities Limited (NSE:ISEC) has returned an average of 2.00% per year to shareholders in terms of dividend yield. … Let's take a look at ICICI Securities in more detail. … See our latest analysis for ICICI Securities
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 offers retail broking services, which include equity, derivatives, currency, margin trading funding etc.; and 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, gold bonds, exchange traded funds, 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, equity research and advisory, and execution services, as well as equity linked and structured products, private equity, portfolio management, alternative investment funds, 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.
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