ICICI Securities is India's leading share brokerage platform with over 10% market share and 4.1 million active clients, deriving its strength from its parent relationship with India's largest private sector lender ICICI Bank. It derives its revenue from three main sources, broking (65%), financial product distribution (25%) and Investment Banking (10%). The company has a nationwide network of 200 owned branches, 2700 ICICI Bank partner branches and 5700 sub brokers.
Investment participation in India is extremely low giving ICICI Securities a long runway for growth. Given its strong links with ICICI Bank, the company has the ability to capture customers with relatives ease as well. The shares are down over 50% from its recent IPO and trade at a very reasonable price to earnings ratio of 13x. We believe that the shares should be worth at least 50% more in line with global brokerage companies such as Charles Schwab or TD Ameritrade.
Our ACATIS India Value Equities invests in ICICI Securities. Information about the fund can be found here.
Our ACATIS Asia Pacific Plus Fonds invests in ICICI Bank. Information about the fund can be found here.
Our disclaimer applies to the share report.
Photo: Siddharth Mehta-Thomas