Stock Broking

HDFC Securities Ltd

₹ 12999

*Average Price as per 3 July, 2022

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Fundamentals

FACE VALUE

10

BOOK VALUE

938.7

NO OF SHARES

15729975

EPS

446.54

SALES

887.4

INDUSTRY PE

55

DIVIDEND

318

DIVIDEND YIELD

1.78

PE

40.09

PB

19.07

PS

20.17

MARKET CAP

28156.66

ABOUT

HDFC Securities Limited is a financial services intermediary and a subsidiary of HDFC Bank a private sector bank in India. It is one of the leading stock broking companies in India and has completed 20 years of operation. HDFC securities were founded in the year 2000 and are headquartered in Mumbai with branches across major cities and towns in India. HDFC securities began operations in April 2000. In the beginning, it was a joint venture between HDFC Bank Limited, HDFC Limited, and Indocean eSecurities Holdings Limited.


Along with offering stock broking services, HDFC securities is also a distributor of financial products. In 2006, HDFC Bank bought HDFC Ltd’s stake and in 2008 acquired another 4% from Indocean securities. Currently, HDFC security is a subsidiary of HDFC Bank. HDFC Securities Ltd is a stockbroking and distribution arm of the HDFC Group. One of the oldest broking houses in India, its operations include Stock Broking and Distribution of various financial products. It is a corporate member of both the  BSE and the NSE. HDFC securities is well known with professional traders for its comprehensive online trading portal offerings.


The Company had 262 branches across 161 cities in the country as on 31 March 2020 and also has multiple digital platforms to enable its customers to have easy access to its products.

OVERVIEW


Economic Outlook


India’s factory output shrank by a record 16.7% in March 2020 as economic activity came to a standstill because of the lockdown, prompting the government to announce a massive fiscal stimulus plan to revive industrial activity. The picture for April 2020 could be even worse with virtually nil growth in most sectors (except food and pharma), which will mean a very large dip in growth rate in manufacturing. In March 2020, manufacturing output slumped 20.6% while electricity generation shrank 6.8% and mining output was flat. For the year ended 31 March 2020, factory output contracted 0.7% against 3.8% growth in the previous year.

India’s retail inflation eased to a four-month low of 5.91% in March 2020 due to a sharp fall in vegetable prices. Inflation rate, based on wholesale prices, also eased to four-month low of 1 per cent in March 2020 largely on account of a sharp fall in food prices. According to ICRA estimates, WPI is expected to record a disinflation of 1.5 per cent in FY20-21, in contrast to the mild inflation of 1.7 per cent in FY19-20.


Capital Markets 


Financial year 2019-20 was marked by testing times on the economic front globally as well as domestically. Geo-political uncertainties, US-China trade war, economic slowdown in advanced economies as well as weak domestic economic growth constrained by slack in consumption demand and subdued investment climate and pressurised government finances posed various challenges.

The Nifty 50 Index tumbled 26.6% in 2019-20, the biggest slide in 11 fiscals. That came on the back of a 29% decline in the last three months of the financial year, the biggest quarterly sell off since 1992. The Sensex 30 index fell by 24.2%. The decline was led by sell off in banking and financial stocks with the Nifty Bank index plunging more than 40% in the last three months ending the year with loss of 36.7%.

In FY20, FPIs were net buyers in equities of Rs.6,153 crore despite a large outflow of Rs.61,973 crore in March 2020. This is compared to net sales of Rs.88 crore in FY19. On the debt side they continued to be large net sellers of Rs.48,710 crore including a large outflow of Rs.60,376 crore in March 2020. This compares with net outflow of Rs.42,357 crore in FY19.

The COVID-19 and the accompanying lockdown will have an impact on India’s growth in FY21. However, we think we could do better than what some economists have predicted - a mid single digit contraction in GDP for FY21. 

HDFC securities Limited is one of the popular financial services intermediary and a subsidiary of HDFC Bank, a private sector bank in India . This is one of the most leading stock broking companies in India and still now have completed 18 years of operation. HDFC securities was established in 2000 and is headquartered in Mumbai with lots of branches across major all cities and towns in India.


Products of the company: 


The HDFC securities share value is dependent on its vast variety of products. The company offers 3 in 1 online investment accounts, which is a combination of an account with HDFC bank and demat and trading services of HDFC Securities. The company offers a host of services to its clients, which include:

  • Equity Trading: HDFC securities provides a user-friendly equity trading platform and provides research services to its client.
  • Mutual Funds: The company provides a platform to their clients to invest in mutual funds on SIP or lumpsum basis across all fund categories, namely equity, balanced, tax saver and debt.
  • IPOs: HDFC securities IPO division enables its account holders to subscribe to the initial public offer of various companies.
  • Derivatives: The company provides access to their client in equity and currency derivate segments which clients can use to hedge or speculate on the price movement of stocks or indices.
  • Fixed Income: Their company provides various investment opportunities in fixed income segment like FD, NCD, Bonds etc. provided by the company for their clients.
  • Exchange-traded Funds: The clients can invest in Exchange-traded funds (ETFs) through the company.
  • Insurance: The company sells life insurance, general insurance and health insurance products of their partners to its clients. 
  • Small case: The company entails its clients to invest in various small cases which are essentially a curated basket of stocks based on a theme or trend.
  • Other services: The company provides various financial tools and calculators, tax solutions and robo-advisory.

INSIGHTS

Dividend details:- 


During the year under review, the Company’s total income amounted to Rs.862.26 crore as against Rs.770.66 crore in the previous year. The operations have resulted in a net profit after tax of Rs.384.15 crore as against Rs.329.82 crore in the previous year. The Company has emerged as a strong player in the financial services space offering a bouquet of savingsand investment products along with the core broking product. The Company had 262 branches across 161 cities in the country as on 31 March 2020 and also has multiple digital platforms to enable its customers have easy access to its products.

Particulars2020-21 (Amount in Crore)2019-20 (Amount in Crore)
TOTAL INCOME1,399.43862.26
TOTAL EXPENSES453.82353.25
PROFIT BEFORE TAX945.61509.01
TOTAL TAX EXPENSES242.39124.86

PROFIT/LOSS AFTER TAX

703.23384.17
EPS446.64245.65
HDFC Securities Ltd have declared interim dividend of Rs 152/shares and its record date is 21 March 2022. 

FINANCIALS






Particulars2021-22 (Amount in Cr.)2020-21 (Amount in Cr.)
TOTAL INCOME1990.311399.43
TOTAL EXPENSES670.00453.82
PROFIT BEFORE TAX1320.31945.61
TOTAL TAX EXPENSES335.97251.38

PROFIT/LOSS AFTER TAX

984.34703.23
EPS623.21446.64



Particulars2021-22 (Amount in Cr.)

2020-21 (Amount in Cr.)

ASSETS


1. NON CURRENT ASSEST229.58187.00
2. CURRENT ASSEST7692.964571.91
          TOTAL ASSEST7922.544758.91
EQUITY & LIABILITIES

EQUITY

EQUITY SHARE CAPITAL15.8315.77
RESERVES1642.081464.54
A. TOTAL EQUITY1657.911464.54
LIABILITIES

NON-CURRENT LIABILITIES150.76135.49
CURRENT LIABILITIES6113.873143.11
B. TOTAL LIABILITIES
TOTAL EQUITY & LIABILITIES {A+B}7922.544758.91


MANAGEMENT


Mr. Bharat D Shah (Chairman) : Mr. Shah is the Chairman of HDFC Securities Limited, 3M India Limited, and Exide Industries Limited. He has been with HDFC Bank since its inception and has played a key role in the formation of the bank. He joined HDFC Bank as an Executive Director in December 1994. He holds a Bachelor’s Degree in Science from the University of Mumbai and a Diploma in Applied Chemistry from Borough Polytechnic, London.


Mr. Dhiraj Relli (CEO) : Mr. Relli has been a member of the HDFC family since 2008. He has served as Senior Executive Vice President and Head of Branch Banking at HDFC Bank, where his span of control extended across 800+ branches in different geographies. Prior to this, he worked as Country Head - Branch Banking with Centurion Bank of Punjab. He was appointed CEO of HDFC Securities in 2015. Mr. Relli is a Chartered Accountant and has also completed an Advanced Management Program from the prestigious Indian Institute of Management, Bengaluru.

INFORMATION

ISIN: INE700G01014

Address: Building B - Alpha, Kanjurmarg (East),Mumbai 400 042 IN

Email: complianceofficer@hdfcsec.com

Phone number: +91-022-39019400

SHARE HOLDINGS

Name of ShareholderHoldings
HDB Employees Welfare Trust0.26 %
Chatapuram Venkatraman Ganesh0.15 %
Sanju Verma 0.12 %
Kamala Sundara0.08 %
Siddhartha M Khiraiya0.08 %
HDFC bank 96.34 %
Founders

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