Buy Geojit Financial Services Ltd For Target Rs.110 - ICICI Direct
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Cash focused business model best suited…
About the stock: Geojit Financial Services is an investment service company in India with a presence in Middle East via subsidiaries, JVs and partnerships and has 466 offices throughout India and the Middle East.
* The company has a total client base of 11.2 lakh as on June 2021
* Cash ADTO market share for the company was at 0.92%
Q1FY22 Results: Geojit Financial Services reported a mixed performance.
* Yearly revenue grew 33% to | 115 crore, brokerage income up 27% YoY
* Expenses declined 5.1% YoY, with PAT up 57% YoY to | 35.1 crore
* Total ADTO up 56% YoY but down 12.1% QoQ at | 3376 crore.
What should investors do?
Geojit has given ~2.2x returns over the past five years.
* We upgrade the stock from HOLD to BUY
Target Price and Valuation: We value Geojit at ~16.8x FY23E EPS and arrive at a revised target price of | 110.
Key triggers for future price performance:
* Yearly rise in cash ADTO trends to aid business volumes
* Cost control on client acquisition to aid profitability
* Focus on affluent clients to help client retention and, thus, revenue
* Focus on wealth management vertical to aid sustained profitability
Alternate Stock Idea: Apart from Geojit, in our coverage we also like 5Paisa.
* It is a leading discount broker and offers a play on new age fintech financial intermediary with robust client addition
* BUY with a target price of | 600
To Read Complete Report & Disclaimer Click Here
https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
Above views are of the author and not of the website kindly read disclaimer
