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ICICI Securities share price hits 52-week high on Q2 earnings, board clears interim dividend

Post the better-than-expected results, brokerage firm CLSA has maintained a 'buy' call and raised its target price to Rs 340 from Rs 320 on the stock

twitter-logo BusinessToday.In        Last Updated: October 23, 2019  | 16:29 IST
ICICI Securities share price hits 52-week high on Q2 earnings, board clears interim dividend
The company has also declared an interim dividend of Rs 4.25 per share of the face value of Rs.5 for the fiscal year 2019-20

Shares of ICICI Securities rose over 11% to hit a fresh 52-week high of Rs 314 on BSE after the capital market company released higher-than-estimated earnings for the quarter ended September. Its previous high of Rs 310 was recorded on September 24, 2019.

ICICI Securities share price opened with a gain of 6 points and later rose 11.03% to the day's high of Rs 316, also its new 52-week high. ICICI Securities shares trade higher than 5, 20, 50, 100 and 200-day moving averages. The stock has outperformed the sector by 5.49%.

As of 1345 IST, the shares of ICICI Securities traded 6.59% higher on BSE and 5.69% higher on NSE. Volume-wise, shares amounting to 0.45 lakh shares and 10.27 lakh shares changed hands on BSE and NSE, both above the 5, 10 and 30-day average volume traded. Market depth data on BSE depicts 67% selling against 33% buying on the current share value of Rs 303.

Net profit of the investment services company rose 0.75% year-on-year to Rs 135 crore in September quarter Q2FY20, aided by a lower tax rate. company's profit increased by 18.42% in quarter-to-quarter basis.

The company reported weak revenue growth on a year-on-year basis, that fell 8.8% to Rs 418 crore in Q2FY20, although consolidated revenue increased 3.98% quarter-on-quarter. Its broking business segment contributed 52% of total revenue.

Company's earnings before interest, tax, depreciation and amortisation (EBITDA) decreased by 2.69% in YoY(Year over Year), however, increased by 3.33% in quarter-to-quarter basis.

"The ICICI Bank-led customer acquisition arrangement is ramping up well and is helping the company target affluent and investment-oriented clients. ICICI Bank sourced client activation rates were 46% in Q2FY20, up from 33 per cent in Q2FY19. The company is intensifying its focus on acquiring the NRI diaspora, a huge and underpenetrated opportunity," the management said in the exchange filing.

Post the better-than-expected results, brokerage firm CLSA has maintained a 'buy' call and raised its target price to Rs 340 from Rs 320 on the stock. "We raise our earnings a bit to factor-in a better top-line and see a 15% CAGR over FY19-22", said CLSA in its report.

The company has also declared an interim dividend of Rs 4.25 per share of the face value of Rs.5 for the fiscal year 2019-20.

By Rupa Burman Roy

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