ICICI Securities shares gain 8% on strong Q2 performance
ICICI Securities's stock jumped 8% to reach Rs. 683 during today's trading session on the NSE. This increase was triggered by the company's strong Q2 earnings. The company posted a 41% YoY increase in its consolidated net profit for Q2FY24, reaching Rs. 423 crore compared to Rs. 300.4 crore in the same quarter last year. The company's revenue from operations also experienced a major boost, growing by 45.5% to Rs. 1,249 crore from Rs. 858.56 crore in the year-ago quarter.
Dividend announcement and delisting process
The board of directors also approved a dividend of Rs. 12 per equity share and set the record date for payment as October 27, 2023. The company is currently undergoing a delisting process, with shareholders set to be allotted 67 shares of ICICI Bank for every 100 stocks held by them. The board has also accepted the resignation of Ankit Sharma, Head - Compliance and Legal (within the category of senior management in the Company), effective from December 7, 2023.
Axis Securities's outlook on ICICI Securities
Brokerage firm Axis Securities commented on ICICI Securities's Q2 results, stating that improvement in cash market volumes drove the recovery in the company's revenues. The firm believes that ICICI Securities has been performing well in terms of market share across segments and expects this trend to continue with focused efforts. Axis Securities also mentioned that the investment phase is largely complete and management expects cost ratios to peak in FY24 before improving thereafter.
Stock performance
At the time of writing, ICICI Securities's stock was trading 2.75% higher at Rs. 649.30 on NSE. The stock has surged over 30% on a year-to-date basis and rallied over 40% in the past six months.
