Share India Securities Gets Buy Call After Reaching 52W-High: Check Target Price

Share India Securities reached a fresh 52-week-high at Rs 1,879.95 apiece level during the last trading session of 2033 on Friday, 29th December. The stock opened today at Rs 1860 and reached an intraday high at Rs 1878.35. A provider of financial services, Share India Securities Ltd. leverages technology to give clients tailored capital market tech-based solutions.

After the stock gained 88% from a 52-week-low in 10 months, the brokerage firm, Profitmart is bullish on the stock and has given a buy rating for a target price of Rs 2400.

Share India Securities Share Price Target

"On a rough cut basis, in FY24E, Topline is expected to touch Rs 1479 crs, followed by Rs 1849 crs in FY25E & Rs 2218 crs in FY26 On the bottomline level we expect the company to record a PAT of Rs 450 crs in FY24E which is expected to bounce back to Rs 550 crs in FY25 & Rs 675 crs in FY26 Thus on a conservative basis, Share India should record a EPS of Rs 136.36 for FY24E which is expected at Rs 166.67 for FY25E & Rs 204.55 for FY26E," said Profitmart in a report.

"Looking at Share India's steady financial track record, strong product portfolio and unique offerings and strong promoters we expect the stock to get re-rated in future. We continue to be positive based on the company's future growth outlook in the F & O segment & its fintech approach which can help it scale up its operations aggressively ahead & believe that Share India looks attractive from a long term perspective," the brokerage added.

"Current PE on FY25E earnings is around 11x which we believe can easily trade at 15 to 16x going ahead looking at the sharp earnings growth, very strong growth seen in the F & O segment and its fintech focus which is unique and presents a strong growth time frame ahead Hence we believe that the Share India Securities stock should be purchased at the current price for a price target of around Rs 2400 over the next 18 months," said the equity research analysts of Profitmart.

Share India Securities Financials

Despite the challenges the stock market suffered due to global difficulties, the company recorded a Topline and PAT of Rs 1088.23 Crs and 330.66 Crs, respectively, for FY23 on a consolidated basis. This is in contrast to Rs 856.50 Crs and 201.84 Crs in FY22. With EBITDA and PAT margins for FY23 of 45.27% and 30.07%, respectively, the firm boasts strong profitability.

"Going ahead we expect a significantly strong H2FY24 going ahead. The Share India management is also confident and positive on demand prospects for its business in the next 6 months as volumes both in F&O side are expected to rise sharply which will benefit the company going ahead New product launches especially uTrade and the Silverleaf acquisition is expected to drive business significantly in the next 6-18 months ahead. The management also reiterated that business performance in H2 is usually significantly better with EBIDTA margins also expected to show significant improvement for Q3 and Q4 ahead," said the brokerage.

Share India Growth Plans

"The company plans to focus to continue on Strengthening technological investment to roll out more tech-based retail solutions and innovative products. The company management expects the retail broking business to contribute significantly to the overall revenue mix going ahead. In last couple of years, the company has acquired two Algo based trading platforms company (uTrade and Algo Wire), and both this acquisition synergies have gone well and its products have received good response. The company is largely focusing on strengthening its retail presence by technological investment to roll out more tech-based retail solutions and innovative products. It recently announced the acquisition of Silverleaf Capital Services, which is a leading capital market player involved in trading activities in the areas of high-frequency trading (HFT)," stated Profitmart.

"Entry in to HFT space will give the company a clear edge in trading in multiple international exchanges with the same tech stack in next few years. The company has ambitious targets of expanding its retail client base to 300K in next few years. This it expects by aggressively focusing on its Algo platform uTrade which is the first of its kind offering for retail investors and has evoked a very strong response from customers. The company is also further diversifying its expertise in to Institutional Equity Business with a strong Research team focusing on idea generation and bottomup strategy and Sales and Dealing team supported with differentiated Algo's for smooth execution of trades," added the brokerage.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.