Buy This Stock Of Capital Market, For +30% Return: Motilal Oswal Recommends

Target Price

The Current Market Price (CMP) of ICICI Securities (ISEC) is Rs. 747. The brokerage firm, Motilal Oswal has estimated a Target Price for the stock at Rs. 970. Hence the stock is expected to give a +30% return, in a Target Period of 1 year.

Company performance

In the past 6 quarters, ISEC's Retail Brokerage revenue was in the Rs. 3-3.5 b range, in spite of strong growth in client addition. Considering allied revenue, which includes Prime subscription, Neo subscription, MTF, and other charges, the traction has been healthy, with total brokerage + allied revenue increasing to Rs. 5b in 2QFY22 from Rs. 3.5b in 1QFY21. The brokerage firm said, "We expect the momentum in Prime and Neo subscription to improve, with a targeted marketing approach. MTF revenue will have a linkage to market movement."

Comments by Motilal Oswal

According to Motilal Oswal, "With the management's focus on customer addition, technology development, and increasing wallet share, its revenue traction should improve going forward. We have raised our estimates for Brokerage revenue to 8% CAGR from 5% CAGR over the next three years."

About the company

ICICI Securities is one of the leading names in the Capital Market. Technology investments are at the core of the current transitional phase for ISEC. It is building a new app for trading, which will appeal to Gen Z and millennial customers.

Disclaimer:

The above stock was picked from the brokerage report of Motilal Oswal. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.