Shares of ICICI Securities fell more than 6 per cent intraday on April 21, a day after the company announced its March quarter earnings. The consolidated profit of ICICI Securities rose 3.3 per cent year-on-year to Rs 340.29 crore. Consolidated revenue rose 20.7 per cent to Rs 89.23 crore. The company has declared a final dividend of Rs 12.75 per share, making the full-year dividend of Rs 24 in FY22 compared to Rs 21.5 in FY21.

Brokerage CLSA maintained its outperforming rating on the stock and cut its target price to Rs 720 from Rs 750. The company reported weak results as brokerage volumes fell in a row. CLSA raised its cost-to-income ratio for FY23-25 to 51 per cent and lowered its forecast for FY23/24.

“ICICI Securities has seen significant traction in client growth over the past few quarters, driven by digital organic sourcing. “However, the brokerage’s market share has not been replicated. With initiatives such as the NEO program, management expects an improvement going forward.

“We expect weakness in issuer services as the volatile stock market will delay their equity fundraising. The fundraising book may also come under pressure from a dilapidated ESOP book. “We maintain our Buy rating on the stock with a revised target price of Rs 780 (based on 17x FY24E P/E), implying a 24 per cent upside.”

At 10:33, ICICI securities were quoted at Rs 583.00, down Rs 46.15 or 7.34 per cent on the BSE. The stock hit a 52-week high of Rs 895.60 and a 52-week low of Rs 432.15 on October 13, 2021, and April 22, 2021, respectively. Currently, it is trading 34.9 per cent below its 52-week high and 34.91 per cent above its 52-week low.