ICICI Securities Hit 52W-High On Dividend Declaration of Rs 12; Buy?

On Tuesday, the shares of ICICI Securities opened higher on the BSE at Rs 659 apiece and went on to hit a fresh 52-week-high of Rs 681.45 during the morning deals after the Q2 result announcement and dividend declaration of Rs 12 per share for the eligible shareholders.

ICICI Securities Dividend

The Board of Directors of the Company, at its Meeting held today i.e. October 16, 2023, inter-alia, approved payment of interim dividend of 12/- (Rupees Twelve only) per equity share of face value of 5/- each to the shareholders of the Company whose names shall appear in the Company's Register of Members as at the close of business hours on the record date i.e. October 27, 2023 as well as to those beneficial holders as registered in the records of Depositories as at the close of business hours on the record date. Please note that the interim dividend will be paid to the Shareholders on or before November 15, 2023," said ICICI Securities in a stock exchange filing.

ICICI Securities Results

ICICI Securities said that its net profit for the September quarter grew by 41% year on year to Rs 423.6 crore from Rs 300 crore in the same quarter of previous fiscal. In the quarter under review or Q2FY24, the total income climbed 44% YoY to Rs 1,249 crore from Rs 865.63 crore in Q2FY23. The company now has more than 91,000 customers, and during the quarter, another 7,000 customers registered. Total AUM was Rs 3.7 trillion, up 20% YoY and 7% QoQ. ICICI Sec said its net revenue from operations stood at Rs 1,249 crore in Q2FY24, registering a growth of 45% YoY from Q2FY23 led by growth in broking income with cash and derivative segment gaining momentum and growth in Investment banking segment.

ICICI Securities Share Price Target

Ameya Ranadive CMT, CFTe, Equity Research Analyst at Choice Broking said, "ISEC (ICICI Securities) is currently trading at 645 and has recently exhibited a breakout at the 640 level. Over the past three and a half months, the stock has demonstrated commendable time and price consolidation within the range of 600 to 645. This indicates a period of stability and potential for further upward movement."

"The ADX (Average Directional Index) stands robust at 45, signaling a strong trend in the stock's movement. Furthermore, the RSI (Relative Strength Index) is on an upward trajectory, currently resting at 62, implying positive momentum," the analyst added.

The analyst of Choice Broking went on to add that "Of notable significance is the fact that ISEC has successfully closed above its key short, mid, and long-term moving averages, including the 20, 50, 100, and 200 EMA. This is a compelling indication of a robust bullish trend in play."

"Given these factors, it is plausible to anticipate a substantial price movement towards the range of 700 to 750 levels in the mid-term. In the event of a potential retracement, a decline to the levels of 630-615 should be viewed as an opportune buying entry point," Ameya Ranadive CMT stated.

"In conclusion, the technical indicators present a compelling case for a bullish outlook on ISEC, with a projected price range of 700 to 750 in the mid-term. A prudent strategy would involve monitoring for potential retracements to capitalize on favorable buying opportunities in the range of 630-615," the analyst claimed.

Disclaimer

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