Shares of this Broking stock under the ‘mid-cap’ category slipped 1.50 percent in Wednesday’s trading session despite the company reporting robust results for the financial quarter ended December 2023.
With a market capitalization of Rs 24,966.41 crores, the stocks of ICICI Securities Limited started their trading session on Wednesday at Rs 798.85 and currently trade at Rs 772.50, exhibiting a down movement of approximately 1.50 percent as compared to the previous closing levels of Rs 785.20 apiece.
The share price of the Broking company dipped today even after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced financial results for Q3FY24, i.e., for the quarter ended December 2023.
On a QoQ basis, the company reported an increase in both the prime indicators of business, i.e., operating revenues as well as after-tax profits. The former shifted up from Rs 1,249 crores during Q2FY23-24 to Rs 1,323 crores during Q3FY23-24, and the latter, during the same time period, rose from Rs 424 crores to Rs 466 crores.
In addition, the abovementioned metrics, yearly as well, were reported with favorable changes with the operating revenues increasing from Rs 879 crores during Q3FY22-23 to Rs 1,323 crores during Q3FY23-24, and the after-tax profits, in congruence, rising from Rs 281 crores to Rs 466 crores showcasing a jump of around 66 percent.
Historically, the company, due to an increase in the total expenditure during the recent financial quarters, reported a dip in profitability ratios with the return on equity (RoE) reducing from 56.88 percent during FY21-22 to 39.18 percent during FY22-23 and the return on capital employed (RoCE) shifting down from 69.24 percent to 59.54 percent.
As per the recent presentations, the Broking company was successfully able to increase its market share in various segments, viz, in retail cash (from 10.5 percent to 13.1 percent), retail option (from 7.5 percent to 8 percent), and commodity (from 5.6 percent to 7.5 percent)
Founded in 1995, ICICI Securities Limited is an integrated securities firm offering a wide range of services in the areas of retail broking, institutional broking, financial product distribution, and private wealth management. The company also provides advisory services to financial institutions, corporations, high-net-worth individuals (HNIs), and retail investors.
Written by Amit Madnani
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