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ICICI Securities surges 10% to hit 52-week high post Q2 results

In the past two months, ICICI Securities has outperformed the market by surging 57 per cent, as compared to a 7 per cent rise in the S&P BSE Sensex.

Illustration by Ajay Mohanty
Illustration by Ajay Mohanty

Shares of ICICI Securities hit a 52-week high of Rs 314, up 10 per cent on the BSE on Wednesday, after the company reported a consolidated net profit of Rs 135 crore in September quarter (Q2FY20), up 1 per cent as against the corresponding period last year. The stock surpassed its previous high of Rs 310 recorded on September 24, 2019.

The company’s consolidated revenue declined 9 per cent to Rs 418 crore in Q2FY20, compared to a revenue of Rs 458 crore in Q2FY19 due to decline in retail broking revenues and regulatory changes in mutual funds distribution business.

ICICI Securities is a part of the ICICI Group and is one of India’s leading retail led equity franchise, distributor of financial products, and investment banker.

For the broking business, which contributed 52 per cent of total revenue, the company reported 21-month high figure of 0.9 million NSE active clients (those who have traded on the NSE in the last 12 months), making up 10.07 per cent NSE market share.

"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 was 46 per cent in Q2FY20, up from 33 per cent in Q2FY19. The company is intensifying its focus on acquiring the NRI diaspora, a huge and under penetrated opportunity," the management said.

Meanwhile, foreign institutional investors (FPIs) have increased their stake in ICICI Securities by more than one percentage point during the recently concluded quarter. FPIs holding in financial services firm rose to 2.69 per cent in September quarter from 1.56 per cent in June quarter. They held 1.4 per cent stake in the company at the end of March quarter, the shareholding pattern data shows.

In the past two months, ICICI Securities has outperformed the market by surging 57 per cent, as compared to a 7 per cent rise in the S&P BSE Sensex.

At 12:06 pm, the stock was up 7 per cent at Rs 305, as compared to a 0.50 per cent gain in the benchmark index. The trading volumes on the counter jumped three-fold with a combined 410,711 shares changing hands on the BSE and NSE so far.