Since the start of lockdown where people have stuck inside the four walls, the Gaming, and Trading in the stock market, have seen an upsurge in the users coming to these platforms either for time pass by playing games or to make some quick money in the stock market.

In the stock market, the greater participation of investors or traders has a direct impact on the revenue and profitability of the stockbrokers. Since March-2020, we have seen huge numbers of people opening demat accounts and transaction volume per day has also increased by the huge numbers. So, in today's article, we are presenting the Sept-2020 numbers of one of India's top stock brokers i.e. HDFC Securities.

Results

1. HDFC Securities has shown revenue growth of 81% this quarter as compared to last year.

2. HDFC Securities has shown PAT growth of 86% this quarter as compared to last year.

3. This quarter they have shown an EPS of 101 per share as compared to just 57 last year.

4. First 6MFY21 EPS stands at 187 per share.

5. The company has issued ESOPs of HDFC Securities at 4290 per share in FY20-21.

Valuation

If you see the tremendous performance of the HDFC Securities in the first 6MFY21, and if we annualize the same, we at UnlistedZone is expecting an EPS of around 325 per share in FY21. The current market price of HDFC Securities in the unlisted market is Rs. 8300 per share. This means that share is available at a P/E multiple of 25x.

Peer

The listed counterpart ICICI securities is currently trading at a P/E of 22x. So the fair value of HDFC Securities should be around 7000 per share.

You should read this as well:

https://unlistedzone.com/hdfc-securities-has-come-with-bumper-q1-fy20-results/

HDFC Securities Q2 Results Link