HDFC Securities Unlisted Share

₹11500

*Average Price as per 4 March, 2024

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Fundamentals

FACE VALUE

10

BOOK VALUE

1130.98

NO OF SHARES

15828975

EPS

490.22

SALES

1874.01

INDUSTRY PE

55

DIVIDEND

100

DIVIDEND YIELD

0.94

PE

21.76

PB

9.43

PS

9.01

MARKET CAP

16883.18

EQUITY

15.89

PAT

777.22

MESSAGE

2022-23

OVERVIEW



Product Offerings of HDFC Securities


HDFC Securities offers 3-in-1 online investment accounts, 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:



Management


Mr. Neeraj Swaroop – Chairman

·Mr. Neeraj Swaroop is an experienced professional with over 40 years in the FMCG industry.

·Ex-Standard Chartered Bank, Ex-HUL, Ex- Ponds India, Ex- Bank of America, Ex-HDFC Bank.

Mr. Dhiraj Relli – MD & CEO

·      A member of the HDFC family since 2008, he has served as Senior Executive Vice President and Head of Branch Banking at HDFC Bank.

·      BCom Hons. from Delhi University, Management program from IIM Bangalore, Chartered Accountant.


Business Overview

 

FY-23 Highlights

·  92% of 11.5 lakh active customers transact seamlessly on HDFC Securities digital platform.

·  52% of the total brokerage income i.e. 414 crores is generated through mobile transactions.

·  HDFC Securities has a widespread distribution network with 209+ branches extended across 147 cities with 11 digital centers in India.

·  More than 89% of the customers are onboarded through digital platform.

·  HDFC Securities MF AUM has grown 17% vs Industry AUM growth of 7% due to increased focus on SIP book and new client participation.

·  Revenue per employee : 66.68 lakhs

·  The average book size for FY-23 under MTF stood at ₹3232 crores higher by 8% compared to previous FY-22 (2992 crores). The book size as of 31st March is positioned at ₹2752 crores.


 

HDFC Securities new platform – HDFC SKY


A discount broking platform that allows trading and investing at a single price point of Rs 20 similar to other online platforms such as Groww, 5Paisa, and Zerodha. HDFC Sky's USP is its margin trading facility which is available at a 12% interest rate whereas its competitors charge between 18 to 21%. Its target market is Gen-Z, millennials, and new-age investors. HDFC Sky is accessible to everyone, in contrast to HDFC Securities, which restricts demat account opening, trading, and investment to HDFC Bank customers only.

INSIGHT

Financial Insights

Particulars

FY-23

FY-22

FY-21

FY-20

FY-19

Brokerage and fee income

(In crores)

1164

1409

1140

687

652

Earnings per share

490

623

447

246

212

Dividend per share

440

547

318

135

110

Profit after tax

 (In crores)

777

984

703

384

348

Overall active clients

 (In lakhs)

11.5

12.3

10.1

7.5

7.1

From FY-20 to FY-22, HDFC Securities profitability increased by 2.5 times, from 384 crores to ₹984 crores. Its profits for FY-23 were 777 crores, which resulted in consolidation due to sluggish market conditions, inflationary trends, and a higher base. 

 

Business Segments

Particulars

FY-23

FY-22

Brokerage and fee income

1164

1409

Interest Income

648

528

Net gain on fair value changes

47

21

Sale of services

11

15

Other Income

19

15

Total income

1892

1990

 The company derives revenue primarily from the share broking business. Its other major revenue sources are interest income and services income.

 

 

Active Client Base

Active Clients

(in lakhs)

March -22

June-22

Sept-22

Dec-22

Zerodha

62.8

65.8

66.8

65.9

Groww

38.5

44.2

48.9

51.7

HDFC Securities

11.4

11.7

11.7

11.3

Rksv Securities

52.2

54.6

47.1

38.6

5 paisa

17.5

16.5

14.3

10.8

 

It is evident that while the clientele of 5 paisa & Rksv Securities has significantly decreased, that of Hdfc Securities has remained nearly unchanged. Conversely, Groww's active clientele has increased significantly.

 

Peer Comparison

-   Financials as of 31st March, 2023

-   Share Price as of 30th November, 2023

 

Particulars

HDFC Securities

ICICI Securities

Angel One

Total Income

1892

3425

3021

PAT

777

1118

890

Market Price

10000

668

3069

Market Cap

15800

21376

25595

P/E

20.40

17.5

25.5

P/B

8.84

6.6

10.1

EPS

490

38

121

BVPS

927

100

311

 

HDFC Securities IPO Plans

Sources say that HDFC Bank will be looking at the public listing of its brokerage and non-bank finance company subsidiaries only after its merger with parent HDFC Ltd goes through.

Answering shareholder queries at the 28th annual general meeting of the largest private sector lender, its chief executive and managing director Sashidhar Jagdishan said the initial public offering (IPO) plans for HDFC Securities and HDB Financial Services depends on the merger process.

"The IPO plans (of HDFC Securities and HDB Financial Services) are something that we will contemplate after we have absorbed (the merger) we’ve got directions from the regulator, after we absorb as and when the merger happens and then we will think about", Jagdishan said.

SECONDARY NAME

HDFC Securities Unlisted Share

ISIN

INE700G01014

CDSL

Yes

NSDL

Yes

INDUSTRY

Service

SECTOR (READ ONLY)

Stock Broking

SHARE HOLDINGS

Name of ShareholderHoldings
HDFC bank96.34 %
HDB Employees Welfare Trust0.26 %
Chatapuram Venkatraman Ganesh0.15 %
Sanju Verma0.12 %
Kamala SundaraKamala Sundara0.08 %
Siddhartha M Khiraiya0.08 %
Founders

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