Stock to purchase now: Profitmart Securities predicts that in the next 18 months, the price of Share India Securities shares could rise to ₹2400 a share.
India Securities have been in a bull market since March 2023. The price of the company emerged from base-building mode and has been consistently rising to new all-time highs since mid-March 2023, when it had bottomed out at about ₹1,015 per share.
Today, India Securities’ stock price began the day higher on the NSE at ₹1,868.50 per share. During morning trade, it reached an all-time high of ₹1,884.45 per share, giving its owners an 85% return over the previous nine months.
In the next eighteen months, Profitmart Securities projects that the price of India Securities could rise to ₹2,400 per share. Profitmart Securities anticipates additional upside in this brokerage company’s stock.
With the price of India Securities currently trading at about ₹1,855 per share, Profitmart Securities is projecting a 30 percent increase in Share India Securities’ value from its current levels.
Financial and valuation
Highlighting the business outlook and valuations of India Securities, the Profitmart Securities report’s financials and valuations stated that, “Despite the headwinds faced by the stock market given the global issues, the company has healthy profitability with EBITDA and PAT margins of 45.27% and 30.07%, respectively, for FY23.” On a consolidated basis, the company has reported a topline and PAT of ₹1088.23 Crs and 330.66 Crs for FY23 when compared to ₹856.50 Crs and 201.84 Crs in FY22.
“On a conservative basis, India should record an EPS of ₹136.36 for FY24E, which is expected at ₹166.67 for FY25E and ₹204.55 for FY26E. A PAT of ₹450 crs is anticipated for the company in FY24E, with a projected recovery to ₹550 crs in FY25 and ₹675 crs in FY26. Consequently, on a rough cut basis, Topline is expected to touch ₹1479 crs in FY24E, after which ₹1849 crs in FY25E and ₹2218 crs in FY26.
The brokerage continued by saying that the current PE on FY25E earnings is about 11x, and given the company’s strong growth in the F&O segment, its fintech focus, which is distinct and offers a strong growth time frame ahead, as well as the sharp growth in earnings, it believes the PE on FY25E earnings can easily trade at 15x or 16x going forward.
Target price for Shares India Securities
Stock market investors were encouraged by the Profitmart Securities report to buy India Securities at the current price with a price objective of around ₹2,400 over the next 18 months.