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