1. At a Glance
ICICI Securities (ISEC) is one of India’s premier brokerage and wealth management platforms, riding the coattails of its ICICI Bank legacy while printing cash like it owns the NSE. But with intense competition and flat growth, can the king of 3-in-1 survive the broking wars?
2. Introduction with Hook
Imagine owning a printing press for money, but every month, someone newer, shinier, and more “Zerodha-ish” opens next door and steals your customers. That’s ICICI Securities.
- 95 lakh+ clients onboarded, mostly via its ICICI Bank ecosystem.
- ROE of 42% and a juicy dividend yield of 3.2%, screaming “cash cow.”
Yet, its sales and profit growth in FY25? A flat pancake with butter scraped off.
3. Business Model (WTF Do They Even Do?)
ISEC has fingers in multiple pies, but the crust is mostly brokerage dough:
- Retail Broking (~50%): Backed by the 3-in-1 account setup with ICICI Bank.
- Institutional Broking: For big boys with suitcases and PowerPoint decks.
- Investment Banking / Merchant Banking: IPO lead management, advisory.
- Distribution: Mutual funds, bonds, insurance. Basically, anything with commission.
- Loan Distribution: Via ICICI ecosystem—no loan, no bonus.
The moat? Legacy customers + tech backbone + cross-selling. The threat? Every nimble fintech broking app out there.
4. Financials Overview
P&L (₹ Cr):
| Year | Revenue | EBITDA | Net Profit | OPM % | EPS (₹) |
|---|---|---|---|---|---|
| FY21 | 2,586 | 1,593 | 1,068 | 62% | 33.1 |
| FY22 | 3,435 | 2,185 | 1,383 | 64% | 42.8 |
| FY23 | 3,422 | 2,109 | 1,118 | 62% | 34.6 |
| FY24 | 5,049 | 3,372 | 1,697 | 67% | 52.5 |
| FY25 | 6,332 | 4,458 | 1,941 | 70% | 59.7 |
- Sales CAGR (5Y): 30%
- Net Profit CAGR (5Y): 29%
- FY25 OPM: Rock-solid 70%
But wait—TTM growth dropped to just 6% in revenue, and net profit slipped by 8%. Saturation alert?
5. Valuation
With a PE of ~16x and ROE of over 40%, the stock looks cheap if growth resumes.
Valuation Range (based on DCF, PE multiples, and historical growth):
₹920 – ₹1,150 per share
- At ₹896 CMP, it trades at the lower end of fair value.
- But growth flattening = risk. No one wants to own a broking firm if the bull market party ends.
6. What’s Cooking – News, Triggers, Drama
- NCLAT Dismisses Scheme Objections: Internal merger drama squashed in 2025.
- Consistent ESOP Grants: Incentivizing the team, diluting the float.
- Digital Broking Fatigue: Intense pricing war from players like Zerodha, Groww, Upstox.
- SEBI Fee Reductions: Hurting margins for the entire industry.
Triggers?
- An IPO boom year
- Interest rate drops (better trading volumes)
- Entry into wealth-tech and AI-led advisory?
7. Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | 161 | 162 | 121* |
| Reserves | 2,691 | 3,761 | 5,301 |
| Borrowings | 9,408 | 16,887 | 21,083 |
| Net Worth | 2,852 | 3,923 | 5,422 |
| Total Assets | 15,569 | 25,623 | 30,048 |
- Borrowings ballooned: Debt up 2.2x in 2 years.
- Despite this, Net Debt/Equity is still manageable due to high profits.
8. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO | -2,597 | -674 | -5,621 |
| CFI | -69 | -125 | -208 |
| CFF | 3,130 | 266 | 1,972 |
| Net Cash Flow | 464 | -533 | -15 |
- CFO has turned deeply negative due to margin & clearing obligations.
- It’s not mismanagement—but a broking biz needs huge working capital during boom cycles.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 34.6% | 52.5% | 55.6% |
| ROCE | 18.0% | 20.0% | 18.2% |
| PE Ratio | 16.1x | ~14x | ~16.1x |
| Div Yield | 3.2% | 3.4% | 3.24% |
- ROE: Mouth-watering
- PE: Cheap compared to peers
- Dividend: Yes papa
10. P&L Breakdown – Show Me the Money
| FY Metrics (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 3,422 | 5,049 | 6,332 |
| EBITDA | 2,109 | 3,372 | 4,458 |
| Net Profit | 1,118 | 1,697 | 1,941 |
| EPS (₹) | 34.6 | 52.5 | 59.7 |
| OPM % | 62% | 67% | 70% |
No complaints—profitability is best-in-class for capital market players.
11. Peer Comparison
| Company | PE | ROE | OPM | MCap (Cr) | Div Yield |
|---|---|---|---|---|---|
| ICICI Securities | 16.1x | 41.6% | 70% | ₹29,149 | 3.24% |
| Angel One | 24.8x | 27.1% | 36% | ₹24,599 | 1.77% |
| Motilal Oswal | 22.5x | 25.3% | 54% | ₹56,251 | 0.53% |
| Nuvama | 27.5x | 30.9% | 53% | ₹27,073 | 1.93% |
ICICI Sec: Cheapest, most profitable, highest ROE.
Also the only one handing out a proper dividend like it’s Diwali every quarter.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 74.85% | 74.74% | 74.35% |
| FIIs | 8.75% | 10.43% | 11.17% |
| DIIs | 5.06% | 7.38% | 8.49% |
| Public | 11.35% | 7.44% | 6.00% |
- FIIs and DIIs increasing stake quietly
- Retail holding shrinking—seems the big boys see something the small fish don’t.
13. EduInvesting Verdict™
ICICI Securities is the old-money broking house that still walks into Dalal Street with swagger and a Rolex.
Yes, it’s not growing like it did in the pandemic frenzy, but it remains wildly profitable, throws out dividends, and is probably the most undervalued player in its segment based on ROE/PE combos.
But will it keep up with the nimble techies like Zerodha and Groww? That’s the ₹30,000 crore question.
Metadata
– Written by EduInvesting | July 16, 2025
– Tags: ICICI Securities, broking, capital markets, wealth management, dividend stocks, financial services
