HDFC Securities Limited Pre IPO | Share Price | Fundamental | Valuation | Review

HDFC Securities Ltd

CIN: U67120MH2000PLC152193 Total asset: 1637.80 Cr Total revenue:781.95 Cr Total shares:154831.25 Cr.

Book value: 764.74 Rs. Total profit: 329 Cr. EPS: 212 Cr. Dividend: 1100%

Disclaimer: Generally, Investment made in Pre-IPO are speculative, illiquid and carry a high degree of risk. Investment made on Planify platform are made through pooled investments vehicles, which acquire shares of private technology companies and are not direct investment in these companies

Summary of HDFC Securities Ltd: • HDFC Securities ltd. Operates as a brokerage firm in India offering 3-in-1 accounts i.e. (savings bank accounts+ De-mat accounts+ Trading accounts).

• HDFC securities also distributes third party products like mutual fund, IPOs and fixed deposits.

• It is a subsidiary company and majorly own

by HDFC bank limited.

• Recently the company has completed 19 years of operation

• Founded in April 2000 and headquartered in Mumbai with branches across major cities and own in India.

• In the beginning it was a joint venture between HDFC bank, HDFC Limited and Indocean eSecurities Holding Limited.

COMPANY OVERVIEW: Name: HDFC Securities Ltd Industry: Institutional Financial Services Sub-Industry: Institutional Brokerage Website: www.hdfcsec.com Address: Office Floor 8, I Think Techno Kanjurmarg (East), Mumbai 400042

Sector: Financials Founded: 04/17/2000 Phone: 91-22-3075-3400 Campus Building B Alpha

HDFC Securities Products and services: • • • • •

Equities SIPs Mutual Funds IPOs Derivatives

• • • • •

Bonds, NCDs and Corporate FDs ETFs Value Added Services i.e. investing and trading ideas.

MCX to Invest in bullion, metals etc.

Small cases i.e. Investment in a curated basket of stocks.

HDFC Securities Board of directors:

Name

Designation

Mr. Bharat Shah Mr. Dhiraj Relli Mr. Ashish Rath Mr. S.S. Thakur Mrs. Amla Samantha Mr. Abhay Aima Mr. Aseem Mr. Jagdish Capoor

Chairman Managing Director Executive Director Independent Director Independent Director Non-Independent Director Non-Independent Director Non-Independent Director

HDFC Securities Ltd. Top 10 Shareholders:

Name

Date

No. of % of Shares Shares

HDB Employee welfare Trust Adil F Patrawala Sanju Verma Chatapuram Ganesh Kamala Sundaram Siddharh Khiraiya Sudhir Moreshwar Joshi Manish Dabir Iyer Balakrishnan Sashi Jagdishan

Mar 2018 40500

0.26

Mar 2018 Mar 2018 Mar 2018 Mar 2018 Mar 2018 Mar 2018 Mar 2018 Mar 2018 Mar 2018

0.21 0.12 0.10 0.08 0.08 0.06 0.06 0.05 0.04

31250 18750 15800 12875 12000 10000 10000 8700 7000

Strength of HDFC Securities Ltd: • HDFC Securities Ltd is one of the oldest broking houses in India which is also a distribution arm of the HDFC GROUP. • Company has a large diversity of products and services for retailers as well an Institutional Investors.

• Parent Company HDFC Bank Own 97.29% in the company’s stake.

• Consistency in profits and award-winning performance in financial sector is increasing trust of the company among investors and market participants.

• Credit rating Agency ICRA Ltd. Assigned AAA/Stable and ICRA A1+ rating for Long-term and short-term bank facilities availed by the company respectively • HDFC securities holds 3rd rank in terms of active customer among all the broking Houses in India.

Industry overview: • Emerging market like India is becoming engines for future growth and has a lot of potential to grow further • It is anticipated that more Indians will participate in financial market in coming few years as our GDP grows and their participation increases the demand of stock brokers and their services • Various financial instruments are now easily accessible for common people and now-a-days population are understanding the power of investing and for that purpose need of financial services providers will boost up.

HDFC Securities Funding Details: • Initially company got funding from HDFC Bank Limited, HDFC Limited and Indocean eSecurities Holding Limited.

• In 2006 HDFC Bank Bought the Stake of HDFC Ltd and till 2008 again acquired 4% Stake from Indocean eSecurities and became major Stakeholder in Company.

• Currently HDFC banks which is parent company holds more than 97.91% stake of the company.

Peer comparison:

Company HDFC Securities Geojit Financial services ICICI securities 5 paisa capital Motilal oswal financial services

Revenue (Cr.) 781.81 285.29

EPS

1725.80 62.64 1248.69

15.12 6942.15 -13.01 346.75 21.72 8482.95

212 1.23

Market Cap (Cr.) -600.51

No. of clients 650,114 160,984 878,884 147,499 326,011

HDFC Securities Financial statement: (All figures in crores)

Particulars

2018-19

2017-18

2016-17

Total income Income growth% Net profit Growth% PAT EPS(Basic)

781.95 -2.25 329.82 -4.32% 212

799.95 42.50 344.42 59.67% 222.40

553.20 37.74 215.90 61.91% 139.45

Cash flow statement: (All figures in Cr.)

Particulars

2017-18 2016-17

Net Cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Equity capital(lakh)

541.44 445.33 151.21 15.55

Other Highlights: Particulars

31 march 2019

Book value Equity capital(lakh)

1193.77 15.61

457.93 162.49 746.6 15.48

Book value per share Face value (Rs.) Dividend Parent company Holding

764.74 10 1100% 97.7%

Financial review on HDFC Securities: • During the year review, the company’s total income amounted to 799.95 Crore as against Rs. 553.20 crore in the year 2017-18 an increase of 42.50% • Company’s operations have resulted in a net profit after tax of Rs. 329.42 crore, as against Rs. 215.90 crore in FY 201819 i.e. 52.5% of growth • EPS of the company is growing continuously from Rs. 139.45 in FY17 to Rs. 212 in FY19 due to increase in revenue • Liquidity position of the company is quite good and operating cash flow of company is very heathy.

• Reserves and surplus of company shows an immense growth of 24% in financial year of 2017-18.

Planify view on HDFC securities: • It is oldest and more reliable financial service provider in India with most trusted brand name.

• HDFC bank is major stake holder around 97% and parent company of HDFC securities i.e. company has a strong management • If we compare this company with the peer companies then it has largest number of clients after Zerodha more than 6.5 lakh.

• 3-in-1 account opening is the unique service provided by HDFC securities and this is the USP of this company.

• Our economy and Capital market show huge growth in last 10 years and now we are shifting towards 3 trillion economy as our GDP grows participation of retailers will increase which eventually pushes business of financial services in India.

• We Planify strongly recommend buy in this company it has a lot of potential to grow and most importantly a strong management.