Why IIFL Securities Stock That Trades Below Rs 75, Rallies By 5% In 1 Day; Hint? A BLOCK DEAL...

Stockbroker, IIFL Securities witnessed huge buying sentiment on both BSE and NSE during Thursday's session after a massive 1.2 crore equity shares exchanged hands in a block deal on August 16. The stock trades below Rs 75 apiece and has risen by at least 5% on the exchanges. Fairfax Financial Holdings-backed Hamblin Watsa Investment Counsel offloaded 1.2 crore equity shares, however, the stock found buyers as well. The Leme India Master Fund and Zafar Ahmadullah were among the buyers.

At the time of writing, the stock traded at Rs 73 apiece, up by 4.6% on NSE. The stock was near its intraday high of Rs 73.70 apiece.

The smallcap stock's current market value is around Rs 2,232 crore as of August 17, 2023.

In a block deal on Wednesday, Hamblin sold 1.2 crore equity shares at Rs 65.45 apiece on NSE. At the same time, TheLeme India Master Fund purchased 80 lakh equity shares and Zafar Ahmadullah bought 40 lakh equity shares. The transaction was carried at Rs 65.45 per share.

The transaction aggregated to Rs 78.54 crore.

As per the Trendline data, IIFL Securities RSI is in the mid-range of 66.2, while its MFI is strongly overbought at 85.4 levels. However, the 1-year beta is at 0.94% which means low volatility in the stock.

In the past five trading sessions, IIFL Securities share price has rallied by over 9.5% on NSE, while its monthly and six-monthly upside is over 14.2% and 22.1% respectively. Year-to-date, the stock has gained by nearly 13%.

In 5 years, the stock rallied by 216.5% on the NSE.

During the June 2023 quarter, the company posted a consolidated net profit of Rs 74.63 crore versus Rs 43.39 crore in Q1FY23 and Rs 86.4 crore in Q4FY23. Revenue from operations stood at Rs 409.08 crore in the quarter, as against Rs 291.54 crore in Q1FY23 and Rs 401.90 crore in Q4FY23.

For the fiscal year FY23, the company has paid a total dividend of 150% aggregating to Rs 3 per share. At the current market price, the stock's dividend yield is at 4.11%.

IIFL Securities is one of the key capital market players in the Indian financial services space. The broker along with its subsidiaries offers advisory and broking services, financial products
distribution, institutional research and investment banking services.