Stock To Buy: ICICI Group Stock Falls 4.5%, Gives A Solid Dividend Yield Of 5.45%

Shares of ICICI Securities have slumped 4.5% in trade today, post the quarterly numbers. The stock now gives a dividend yield of nearly 5.62% post the fall in the share price. Motilal Oswal says buy the stock of ICICI Securities. Motilal Oswal has maintained a BUY rating with a target price of Rs 530 post the company's quarterly numbers.

According to the brokerage ICICI Securities has seen tough times in the recent past due to high linkage of its revenue to broader equity markets. This has translated into a sharp decline in broking revenue as its dependence on cash volumes has been relatively higher. However, there has been stability in the past couple of quarters. The primary issuances have been on weak footing amid a volatile equity market. ISEC is now on the course of diversifying its revenue with the launch of several tools and products for the derivatives
segment.

"Besides, the company has intensified its focus on increasing the penetration of MTF among its customers. The launch of new distribution products -loans and general insurance - will further enhance revenue in due course. On the cost front, ISEC will continue to invest in human resources and technology. We broadly retain our estimates and maintain our BUY rating on the stock with a price target of Rs 530 (premised on 12 times FY25E P/E).

The shares of ICICI Securities were last seen trading at Rs 440, with a drop of 4.45%.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. This is not a recommendation of either the author nor Greynium Information Technologies Pvt Ltd. Investors are advised caution when investing. The above article is for information purposes only. Neither the author, nor Greynium Information Technologies nor the brokerage firm would be responsible for losses incurred based on the report.