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Last Updated on: 19 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 541179 | NSE: ISEC

ICICI Securities Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 19, 2024, 7:01 pm

Market Cap 27,316 Cr.
Current Price 840
High / Low922/654
Stock P/E13.3
Book Value 138
Dividend Yield3.45 %
ROCE19.7 %
ROE50.1 %
Face Value 5.00
PEG Ratio1.04

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for ICICI Securities Ltd

Competitors of ICICI Securities Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Inani Securities Ltd 13.5 Cr. 29.542.0/20.59.28 42.20.00 %10.6 %6.92 % 10.0
HCKK Ventures Ltd 39.4 Cr. 106154/77.4219 11.50.00 %8.17 %6.44 % 10.0
HB Portfolio Ltd 108 Cr. 100177/53.514.6 2791.00 %3.34 %2.90 % 10.0
Haryana Capfin Ltd 170 Cr. 327448/0.0033.7 6130.00 %1.30 %0.97 % 10.0
Harmony Capital Services Ltd 19.8 Cr. 65.973.4/36.2 3.570.00 %6.55 %5.09 % 10.0
Industry Average7,158.98 Cr2,448.9869.075,647.920.29%15.40%17.37%7.42

All Competitor Stocks of ICICI Securities Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales7458569428927948588798859341,2491,3231,5431,641
Expenses275313333329311335330337363439412464506
Operating Profit4705446085634835235495485718109111,0791,135
OPM %63%63%65%63%61%61%62%62%61%65%69%70%69%
Other Income200117100-0113
Interest42588391100108153175185215261327394
Depreciation14151617161919212226273437
Profit before tax417471510455367404377353364569624720708
Tax %25%25%25%25%25%26%26%26%26%26%25%25%26%
Net Profit311351380340274300281263271424466537527
EPS in Rs9.6310.8911.7910.558.489.318.708.148.3913.1114.4116.5916.28

Last Updated: October 17, 2024, 9:22 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 17, 2024, 9:22 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales7068121,2101,1251,4031,8611,7251,7212,5863,4353,4225,0495,756
Expenses5536347117078389429128239931,2501,3131,6781,821
Operating Profit1531784994175669198138981,5932,1852,1093,3723,935
OPM %22%22%41%37%40%49%47%52%62%64%62%67%68%
Other Income0-0-2-11-213-14425
Interest31253126295042861072745369871,196
Depreciation1413161615151561546375109123
Profit before tax1091404503745228527577531,4311,8531,5012,2782,621
Tax %34%36%35%36%35%35%35%28%25%25%26%26%
Net Profit72892942393395534915421,0681,3831,1181,6971,953
EPS in Rs0.891.113.652.964.2017.1815.2316.8233.1442.8534.6252.4760.39
Dividend Payout %42%45%55%67%61%32%62%65%65%56%55%55%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)23.61%230.34%-18.71%41.84%63.13%-11.21%10.39%97.05%29.49%-19.16%51.79%
Change in YoY Net Profit Growth (%)0.00%206.73%-249.04%60.55%21.29%-74.34%21.60%86.66%-67.55%-48.66%70.95%

ICICI Securities Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:20%
5 Years:24%
3 Years:25%
TTM:57%
Compounded Profit Growth
10 Years:34%
5 Years:28%
3 Years:17%
TTM:66%
Stock Price CAGR
10 Years:%
5 Years:23%
3 Years:2%
1 Year:22%
Return on Equity
10 Years:57%
5 Years:54%
3 Years:51%
Last Year:50%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital161161161161161161161161161161161162162
Reserves51881912373296878861,0481,6612,2692,6913,7614,303
Borrowings2703172271733956774521,6573,6307,8469,40816,88722,262
Other Liabilities3591,0067848261,1621,3493,1651,5762,7293,3703,3084,8144,967
Total Liabilities8401,5731,3631,3972,0472,8744,6654,4438,18113,64615,56925,62331,694
Fixed Assets33353535353844198161184258540631
CWIP32423448814311919
Investments310011243231181923
Other Assets8021,4361,3231,3582,0082,8284,6144,2348,00913,43815,27225,04531,021
Total Assets8401,5731,3631,3972,0472,8744,6654,4438,18113,64615,56925,62331,694

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +165712,289-1,878-1,610-2,597-674-5,621
Cash from Investing Activity +-17-21-21-23-40-69-125-257
Cash from Financing Activity +-546-5615591,4173,1302665,715
Net Cash Flow94561,707-1,342-233464-533-163

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-117.00-139.00272.00244.00171.00242.00361.00897.00-2.00-5.00-7.00-13.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days502425295185611011965418369
Inventory Days
Days Payable
Cash Conversion Cycle502425295185611011965418369
Working Capital Days-64-135-125-73-51-152-461-81-220-260-137-178
ROCE %31%84%70%76%75%53%38%37%27%18%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters74.89%74.89%74.87%74.86%74.85%74.85%74.83%74.79%74.77%74.74%74.65%74.58%
FIIs6.58%7.32%7.10%7.43%7.77%8.75%9.48%10.06%10.33%10.43%9.31%10.45%
DIIs7.79%7.08%6.75%6.24%5.82%5.06%5.08%6.20%6.35%7.38%10.02%9.06%
Public10.74%10.71%11.28%11.47%11.56%11.35%10.60%8.93%8.55%7.44%6.02%5.88%
No. of Shareholders1,73,2481,86,8751,93,2951,91,5091,76,5741,72,7881,65,9231,38,5631,30,7341,25,3071,29,8651,16,342

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak ELSS Tax Saver Fund2,545,1563.42222.17436,3882024-11-15483.23%
Kotak Multicap Fund1,977,2121.12172.59436,3882024-11-15353.09%
WhiteOak Capital Flexi Cap Fund1,562,4653.22136.39436,3882024-11-15258.04%
Kotak Equity Savings Fund - Regular Plan905,9161.0379.08436,3882024-11-15107.59%
Kotak Multi Asset Allocation Fund696,5970.860.81436,3882024-11-1559.63%
Sundaram Multi Asset Allocation Fund520,3941.8545.43436,3882024-11-1519.25%
Whiteoak Capital Large & Mid Cap Fund488,2942.8142.62436,3882024-11-1511.89%
Sundaram Financial Services Opportunities Fund483,8292.8242.23436,3882024-11-1510.87%
Sundaram Financial Services Opportunities Fund - Institutional Plan483,8292.8242.23436,3882024-11-1510.87%
Axis Small Cap Fund436,3880.1538.09436,3882024-11-150%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)52.5134.6242.8633.1416.83
Diluted EPS (Rs.)52.2234.5442.6933.0816.81
Cash EPS (Rs.)55.8436.9444.7834.8218.73
Book Value[Excl.RevalReserv]/Share (Rs.)121.3088.3575.3256.5437.55
Book Value[Incl.RevalReserv]/Share (Rs.)121.3088.3575.3256.5437.55
Revenue From Operations / Share (Rs.)156.15105.80106.4580.2652.97
PBDIT / Share (Rs.)104.3265.4367.8449.4127.96
PBIT / Share (Rs.)100.9563.1065.9047.7326.05
PBT / Share (Rs.)70.4346.4957.4244.4023.37
Net Profit / Share (Rs.)52.4734.6242.8533.1416.82
NP After MI And SOA / Share (Rs.)52.4734.6242.8533.1416.82
PBDIT Margin (%)66.8161.8463.7261.5652.79
PBIT Margin (%)64.6559.6461.9059.4749.19
PBT Margin (%)45.1043.9453.9355.3244.12
Net Profit Margin (%)33.6032.7140.2541.2831.76
NP After MI And SOA Margin (%)33.6032.7140.2541.2831.76
Return on Networth / Equity (%)43.2539.1856.8858.6044.81
Return on Capital Employeed (%)70.3759.5469.2462.0125.25
Return On Assets (%)6.627.1710.1313.0512.19
Long Term Debt / Equity (X)0.000.000.000.001.24
Total Debt / Equity (X)4.263.263.191.931.24
Asset Turnover Ratio (%)0.240.230.310.410.37
Current Ratio (X)1.181.241.251.373.56
Quick Ratio (X)1.161.161.231.282.81
Dividend Payout Ratio (NP) (%)40.4664.9857.7444.5059.14
Dividend Payout Ratio (CP) (%)38.0260.8955.2442.3553.12
Earning Retention Ratio (%)59.5435.0242.2655.5040.86
Cash Earning Retention Ratio (%)61.9839.1144.7657.6546.88
Interest Coverage Ratio (X)3.423.948.0014.8410.43
Interest Coverage Ratio (Post Tax) (X)2.723.086.0510.957.27
Enterprise Value (Cr.)28903.4516313.1122186.3811938.868014.86
EV / Net Operating Revenue (X)5.724.786.464.624.70
EV / EBITDA (X)8.577.7210.147.508.90
MarketCap / Net Operating Revenue (X)4.654.045.844.755.23
Retention Ratios (%)59.5335.0142.2555.4940.85
Price / BV (X)5.984.848.256.757.38
Price / Net Operating Revenue (X)4.654.045.844.755.23
EarningsYield0.070.080.060.080.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of ICICI Securities Ltd as of November 19, 2024 is: 951.26

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 19, 2024, ICICI Securities Ltd is Undervalued by 13.25% compared to the current share price 840.00

Intrinsic Value of ICICI Securities Ltd as of November 19, 2024 is: 1,072.56

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 19, 2024, ICICI Securities Ltd is Undervalued by 27.69% compared to the current share price 840.00

Last 5 Year EPS CAGR: 12.75%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 44.08%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -161.42, which is a positive sign.
  3. The company has shown consistent growth in sales (118.62 cr) and profit (304.92 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 88.58, which may not be favorable.
  2. The company has higher borrowings (4,938.54) compared to reserves (1,400.15), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in ICICI Securities Ltd:
    1. Net Profit Margin: 33.6%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 70.37% (Industry Average ROCE: 15.2%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 43.25% (Industry Average ROE: 15.98%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.72
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.16
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 13.3 (Industry average Stock P/E: 53.42)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 4.26
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

ICICI Securities Ltd. is a Public Limited Listed company incorporated on 09/03/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L67120MH1995PLC086241 and registration number is 086241. Currently Company is involved in the business activities of Security and commodity contracts brokerage. Company’s Total Operating Revenue is Rs. 3434.56 Cr. and Equity Capital is Rs. 161.34 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & InvestmentsICICI Venture House, Appasaheb Marathe Marg, Mumbai Maharashtra 400025investors@icicisecurities.com
http://www.icicisecurities.com
Management
NamePosition Held
Mr. Vinod Kumar DhallChairman & Ind.Director
Mr. Vijay ChandokManaging Director & CEO
Mr. T K SrirangJoint Managing Director
Mr. Ajay SarafExecutive Director
Mr. Prasanna BalachanderNon Executive Director
Mr. Rakesh JhaNon Executive Director
Dr. Gopichand KatragaddaIndependent Director
Mr. Ashvin ParekhIndependent Director
Mr. Subrata MukherjiIndependent Director
Ms. Vijayalakshmi IyerIndependent Director

FAQ

What is the latest intrinsic value of ICICI Securities Ltd?

The latest intrinsic value of ICICI Securities Ltd as on 19 November 2024 is ₹951.26, which is 13.25% higher than the current market price of ₹840.00.

What is the Market Cap of ICICI Securities Ltd?

The Market Cap of ICICI Securities Ltd is 27,316 Cr..

What is the current Stock Price of ICICI Securities Ltd as on 19 November 2024?

The current stock price of ICICI Securities Ltd as on 19 November 2024 is ₹840.

What is the High / Low of ICICI Securities Ltd stocks in FY 2024?

In FY 2024, the High / Low of ICICI Securities Ltd stocks is 922/654.

What is the Stock P/E of ICICI Securities Ltd?

The Stock P/E of ICICI Securities Ltd is 13.3.

What is the Book Value of ICICI Securities Ltd?

The Book Value of ICICI Securities Ltd is 138.

What is the Dividend Yield of ICICI Securities Ltd?

The Dividend Yield of ICICI Securities Ltd is 3.45 %.

What is the ROCE of ICICI Securities Ltd?

The ROCE of ICICI Securities Ltd is 19.7 %.

What is the ROE of ICICI Securities Ltd?

The ROE of ICICI Securities Ltd is 50.1 %.

What is the Face Value of ICICI Securities Ltd?

The Face Value of ICICI Securities Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in ICICI Securities Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE