ICICI Securities Limited (ISEC) is an integrated and technology-led firm offering a wide range of services including retail and institutional broking, financial product distribution, personal wealth management and advisory services.
Manages ISEC’s net worth ₹4.2 trillion for customers of various products. Currently, it is the fourth largest NSE broker in terms of active clients and has a market share of 8.4%. recommend as top stock picks For this week, Axis Securities said that ISEC aims to reduce its dependence on the broking business by bringing down its stake to below 50% of revenue in the medium term.
The company’s transformational journey from ‘physical’ to ‘digital’ financial services provider has laid the foundation for building a scalable business model going forward.
“This re-engineered business model will enable ISEC to gain market share and maintain its formidable position in the increasingly competitive landscape. We like ISEC for its superior ROE profile, superior brand recall and innovative product proposition across customer segments.”
The brokerage firm has a buy recommendation on ICICI Securities stock with a target price of ₹832/share.
“ISEC aims to maintain its steady growth momentum on a sustainable basis and seeks to transform itself from a ‘one-stop-shop’ entity to a digitally integrated financial market place, and thereby gain 10+% market share in new customers.” Wants to acquire stake. Acquisition,” Axis Securities said.
With digital channels, open architecture and favorable shift in demographics towards younger population, will help ISEC maintain its customer engagement momentum. The note added that its customer centric initiatives like ‘Prime’, ‘NEO’ etc., which have started yielding results, are improving customer engagement and thus supporting revenue.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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