Analysis of HDFC Securities Annual Report 2021
22 Jun, 2021
The year FY20-21 has been fantastic for the broking industry. Pandemic has given so much time to the people of India to participate and play in the stock market. Record number of demat accounts (~1.5 Crores) have opened in FY21, record buying by Retail investors (~45% market participants), and many more such events have happened. Due to which, market is today trading at all time high.
FIIs have shown tremendous interest in the Indian stock market. After Brazil, India is the second most favored nation for investment by FIIs. The total investment of FIIs in the Indian stock market have gone up from ~21 Lac Crores in FY19 to ~42 Lac Crores in FY21.
Changing behavior of Investors?
During pandemic, people were on a constant lookout for avenues of income generation and investment. These new entrants were not only from metro cities but also from Tier II and Tier III cities as well. This speaks volumes about the change in mindset of investors and their willingness to invest in equities, as opposed to their traditional go-to investment instruments such as gold, real estate, FDs etc. It is very interesting to note that generational changes are not happening in 25-30 years anymore. It has been reduced to 5-10 years now. Each generation has different needs and is disrupting the service delivery models with its expectations.
Key Metrics of HDFC Securities Unlisted Share in FY21 
Key Business Highlights of HDFC Securities in FY21
1. In FY21, it has more than 10 lac active clients. And, it is the 5th largest stock broker in India.
2. 50% of the brokerage income generated in FY21 comes via mobile application, up from 32% last year. It shows more and more people are using mobile application for trading.
3. In FY21, HDFC Securities has onboarded 50% of clients via digitally.
4. As on 31.03.2021, HDFC Securities has 216 branches in more than 159 cities in India.
5. In Margin Trade Funding, the total book size is ~1700 Crores. Average book size during FY21 was ~900 Crores up by 50% as compared to last year when it was ~500 Crores.
Financial Performance in last 5 years.
| Year | Revenue | PAT | OPM | NPM | EPS |
| 2016 | 401 | 133 | 53% | 33% | 86 |
| 2017 | 553 | 215 | 62% | 39% | 139 |
| 2018 | 788 | 344 | 68% | 44% | 222 |
| 2019 | 782 | 329 | 66% | 42% | 210 |
| 2020 | 862 | 384 | 51% | 45% | 246 |
| 2021 | 1368 | 703 | 70% | 52% | 446 |
