Tag: ICICI Securities

ICICI Securities falls over 2% after CLSA cuts target by 39% on declining cash volume

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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[wealthdesk shortname=”ICICI Securitie” isinid=”INE763G01038″ bseid=”541179″ nseid=”ISEC” sector=”Miscellaneous” exchange=”bse”]

ICICI Securities shares declined for a second straight day on Wednesday after CLSA downgraded the Indian brokerage firm to ‘underperform’ from ‘downgrade’ and slashed its target price by 39 percent.

CLSA’s target price of Rs 450 implies a 6 percent downside from Tuesday’s closing price.

On Wednesday, ICICI Securities stock fell 2.7 percent intraday and was trading 2.19 percent lower at 415 am on BSE at 2:55 pm. In 2022 (year-to-date) the Indian brokerage’s stock has erased a little less than half (47 percent) of investors’ wealth as against the benchmark Sensex which has slipped over 9 percent during the period.

CLSA is of the view that a slow start to the fiscal for trading volumes is hurting ICICI Securities and that channel checks suggest that cash volumes have further corrected 20 percent month-on-month in June.

The global brokerage has also cut earning per share (EPS) estimate by 13-18 percent and lowered revenue estimate by 8-11 percent.

This comes just days after Citi gave the company a ‘sell’ rating and reduced its target price by 33 percent. Citi cut the stock’s target price from Rs 600 to Rs 400 last week as it said that ICICI Securities’ average cash turnover at NSE in June fell to 30 percent below the levels seen in the fourth quarter of FY22.

The average cash turnover has fallen dramatically and has negative implications for revenue and the planned capex in the tech platform is leading to cost pressure, the brokerage firm said.

It has also lowered its FY23 and FY24 estimates for ICICI Securities by 19 and 18 percent, respectively, and cut the target multiple to 13x.

In the last quarter of FY22, the company posted a 21 percent jump in revenue at Rs 892 crore up from Rs 739.34 crore in the year-ago period. This was aided by strong all-around performance across business segments.

ICICI Securities has a client base of 76 lakh, of which over 6.2 lakh were added during the quarter. For the financial year ended March 2022, the company reported a PAT of Rs 1,383 crore, up 29 percent from the preceding fiscal. Revenue grew 33 percent to Rs 3,438 crore.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ICICI Securities Q4 results: PAT up 3% YoY to Rs 340 crore, revenue rises 21 to Rs 892 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

[wealthdesk shortname=”ICICI Securitie” isinid=”INE763G01038″ bseid=”541179″ nseid=”ISEC” sector=”Miscellaneous” exchange=”nse”]ICICI Securities, a leading financial services company, on Wednesday, reported a 3 percent year-on-year (YoY) jump in profit after tax (PAT) at Rs 340 crore for the fourth quarter ended March 31, 2022. In the corresponding quarter last year, the company posted a PAT of Rs 329.47 crore.

The company posted a 21 percent jump in revenue at Rs 892 crore in the quarter under review, from Rs 739.34 crore in the year-ago period, aided by strong all-round performance across business segments. ICICI Securities has a client base of 76 lakh, of which over 6.2 lakh were added during the quarter.

“We are happy to report an all-round financial performance with growth in all our business segments which is a testimony to our execution capabilities,” the company’s managing director and chief executive officer Vijay Chandok said.

Also Read: Mindtree Q4 results: Net profit rises 49% YoY to Rs 473.1 crore, beats estimates; declares full year dividend

“As we continue our journey towards becoming a digitally integrated financial marketplace, our focus will be on Diversification, operating leverage, strengthening product positioning. We will continue making investments in Next-Gen technology to build a ‘future-ready architecture’ and in our brand as well as on building a diversified talent pool,” he added.

During the quarter, 65 percent of customers acquired were under 30 years of age (versus 62 percent year-on-year) and 84 percent were from tier II and below geographies (versus 80 percent year-on-year). The company’s board has declared a final dividend of Rs 12.75 per share, amounting to Rs 24 per share for FY22, which is its highest ever.

For the financial year ended March 2022, the company reported a PAT of Rs 1,383 crore, up 29 percent from the preceding fiscal. Revenue grew 33 percent to Rs 3,438 crore. ICICI Securities, a subsidiary of ICICI Bank, has four lines of businesses — broking, distribution of financial products, wealth management and investment banking.

Also Read: Tata Elxsi Q4 results: Net profit jumps 39% YoY to Rs 160 crore, revenue up 31.51% to Rs 681.7 crore

The interest income increased from Rs 103 crore for Q4-FY2021 to Rs 2,11 crore in Q4-FY2022, an increase of 105.0 percent. This was primarily due to increase in average MTF & ESOP funding book and fixed deposits.

The results came after the close of the market hours. Shares of ICICI Securities ended at Rs 627.30, up by Rs 3.10, or 0.50 percent on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Startup Digest: Sistema.bio secures $15.6 million, Global VCs invest $5 million in Invact Metaversity, AiDash acquires Neurafarms.ai & Trump’s Truth Social app launches on Apple App Store

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sistema.bio secures $15.6 million to scale climate-smart clean energy technology for farmers

Cleantech startup Sistema.bio has secured $15.6 million in its Series B round that includes a mix of equity, debt and non-dilutive capital. The round was led by an equity investment from KawiSafi Ventures and matched by AXA IM Alts. Existing investors Engie RDE, EU ElectriFI fund, Chroma Impact, Blink CV and Co Capital also participated in the round, and Triodos Bank provided additional working capital financing.

The fresh funds will be used to support the growth and scale of the company’s waste-to-energy technology and business model. The financing will also strengthen partnerships and distribution, carbon reduction activities, R&D efforts and overall operations in LATAM, Africa, and Asia-Pacific, the firm added.

Sistema.bio provides access to biodigester technology, training, and financing for farmers. At present, the company claims to have over 200,000 users in 30 countries with operational hubs in Mexico, Colombia, Kenya and India. In 2021, the company sold 14,000 units and set up a new manufacturing facility in India.

Global VCs invest $5 million in Invact Metaversity

Former Twitter India head Manish Maheshwari’s edtech platform Invact Metaversity has received seed round investment of $5 million from global VCs which includes Arkam Ventures and Antler from India, Picus Capital from Germany, M Venture Partners from Singapore, BECO Capital from Dubai and 2am VC from the US among others.

Also Read: BigBasket acquires Kerala startup Agrima Infotech

The startup has also raised capital from over 70 entrepreneurs such as Balaji Srinivasan, former chief technology officer at Coinbase; Nithin Kamath, cofounder of Zerodha; and Kunal Bahl, founder of Snapdeal, among others. This brings the current valuation of the company at $33 million.

“Metaverse is a concept that stands at a cusp where it will be the lead factor in transforming the educational landscape. We will use this investment to bolster the product and technology team for the Metaversity platform, build a virtual-first curriculum and expand into Europe and the US,” said Manish Maheshwari, founder & CEO of Invact Metaversity.

Accel Partners invests $2.3 million in e-commerce marketing software company RetainIQ

RetainIQ, an e-commerce marketing company, has secured $2.3 million in a seed round of funding led by venture capital firm Accel Partners. The funding round also saw the participation of VC firm Hauz Khas Ventures and London-based private equity firm Creator Collective Capital.

Angel investors including Unicommerce founders Ankit Pruthi, Karun Singla, and Vibhu Garg, Upgrad co-founder Mayank Kumar, Ally.io founder Vetri Vellore, Brightchamps founder Ravi Bhushan Kumar, and Gromo founder Ankit Khandelwal, among others, too pitched in.

The firm said it will use the raised capital to scale its operations, accelerate product development, and expand its core teams across engineering, product, sales, marketing and operations. The startup is also looking to expand its presence across the Indian and US markets.

Fitness startup ‘Fit On Click’ gets $1.5 million, announces strategic tie-up with Iffort India

Dubai-based fitness startup Fit On Click has closed a $1.5 million pre-series A institutional round of funding led by Arrow Capital. The startup in a strategic tie-up with Iffort India has also launched Fitze a digital app that incentivizes its users to earn coins and get rewards for every move they make.

Also Read: Bengaluru-based edtech startup Vedantu Innovations plans global foray before IPO

Commenting on the fundraise, Ben Samuel, founder and CEO at Fit On Click said, “With the support of Iffort, this funding round will allow us to strengthen our technology and rapidly scale to the wider MENA region in the near future.”

Supply Chain Labs announces 1st close of Rs 75 crore of its Fellowship Fund

Supply Chain Labs, a supply-chain-focused fund has announced the first close of its purpose-specific fund at Rs 75 crore. This fellowship fund, with the mission of selecting, collaborating and investing in 50 of the most high-potential supply-chain-focused startups would be the sole vehicle through which SCL will be investing in its third cohort onwards, the firm said.

SCL already has 19 companies in its portfolio from its first two cohorts. The fellowship fund is a stage agnostic fund that will potentially invest up to Rs 7.5 crores in each startup. The 19 companies that are part of Supply Chain Labs cohorts have seen over 5x value expansion, and over 80 percent of the companies have raised follow-on capital, the firm added.

AiDash acquires geospatial firm Neurafarms.ai

AiDash has announced the acquisition of geospatial and AI (artificial intelligence) powered farming solutions provider Neurafarms.ai. With the acquisition of Neurafarms.ai, AiDash strengthens its product line and adds valuable talent to its team, according to a statement. The company did not disclose the size of the acquisition.

“With the addition of Neurafarms.ai’s team and assets, AiDash builds on its vision of becoming a global leader in leveraging satellites and AI to revolutionise operations, maintenance, and sustainability for core industries,” it said.

Bhavesh Patidar, Neurafarms.ai co-founder and leader of the startup’s data science innovations, would join the AiDash team, with a focus on strengthening its Disaster and Disruptions Management System (DDMS), which helps industries better manage disaster prediction, detection, and response.

Neurafarms.ai’s head of research and development Anil Singh would also join AiDash as a remote sensing scientist. His focus would be enhancing the company’s research and development activities to analyse data obtained from remote sensing systems and channel it to address industry problems, the statement added.

ICICI Securities initiates coverage on Paytm with ‘buy’ rating

ICICI Securities initiated coverage on Paytm parent One97 Communications with a ‘buy’ rating. The brokerage assigned a target price of Rs 1,352 to the Paytm stock, which has hit a series of lows in the recent past. Paytm is optimising and monetising its user funnel to drive customer lifetime value. The brokerage mentioned below-expected monetisation through the company’s financial services business and unfavourable regulatory outcomes as key risks.

According to ICICI Securities, Paytm calls for evaluation and assessment quite differently and distinctly, given its management’s high growth aspirations calling for significant investments and cash burn, rapidly evolving business model, highly competitive landscape with low switching cost, regulatory uncertainties and few unfavourable outcomes. Paytm has built a sizeable two-sided digital ecosystem with proven leadership in payments, commanding a market share of more than 40 percent mobile payments and more than 25 percent digital P2M transactions.

SEBI plans to tighten IPO pricing rules for new-age tech firms

The Securities and Exchange Board of India (SEBI) has proposed to tighten the disclosure standards of new-age tech firms that plan to hit the market with public issues. The market regulator plans to ask these firms to justify the pricing of shares for their initial public offerings (IPOs) in order to bring in more transparency on the listing of shares. SEBI issued a raft of proposals in its discussion paper and has set a March 5 deadline for the public to give their comments.

Once the proposals are accepted, the market regulator will ask companies to explain in detail how they have arrived at the pricing of their issue, compare that with the share sales before the IPO and disclose all presentations made to the investors before the IPO. This will help retail investors make an informed decision. The move comes after a meltdown in newly-listed tech stocks like Paytm and Zomato that plunged from their highs in the past few weeks, massively eroding investor wealth.

Shadowfax Technologies to move 75% of its fleet to EV by 2024

Crowdsourced last-mile delivery platform Shadowfax Technologies is planning for rapid electrification of fleet and is aiming to move to 75 percent electric vehicles by 2024. It further aims to transition to 100 percent electric movement by 2026. This adoption is part of a global effort to make logistics more sustainable with the Zero Pollution Campaign, the startup said in a statement.

“With the EV and E-store initiatives, our target on first-time users and new categories like women partners would be fast-tracked. Additionally, it gives me immense pleasure to be participating in the NITI Aayog project ‘Shoonya- Zero Pollution Mobility,’ which is relentlessly driving the EV agenda,” said Abhishek Bansal, co-founder & CEO, Shadowfax Technologies.

Also Read: Bleeding unicorns: Oyo loses Rs 76,000 every minute, Swiggy Rs 25,000; how startups are performing?

On the back of a fast-growing base of 100,000+ rider partners, Shadowfax is currently serving over 170 enterprise clients across 700+ cities, delivering over 1 million orders every day.

Edtech startup BrightCHAMPS to accept cryptocurrency payments

Edtech startup BrightCHAMPS has announced that it will accept cryptocurrencies such as Bitcoin, Tether, and Ethereum as modes of fee payment across all the 30+ countries it is operational in, including the US, Canada, UAE, Nigeria, Malaysia, and Thailand, among others.

The firm has partnered with the leading global crypto payment gateway, TripleA, to ensure secure and stable transactions for new and existing customers, it said in a statement. The announcement comes on the back of BrightCHAMPS’ recent acquisition of Education10x, a financial literacy education platform for children from 8 to 16 years of age.

Betterhalf.ai partners with ZestMoney for zero cost pay-later options

Matchmaking platform Betterhalf.ai has partnered with Buy Now, Pay Later platform ZestMoney, to offer the convenience of zero-cost pay-later/EMI option to its users. The partnership enables Betterhalf’s customers to access ZestMoney’s quick, easy and flexible pay-later offerings. Users will also be eligible for a cashback of up to Rs 1000 on the first timely repayment, the firm said.

GLOBAL TECHNOLOGY & STARTUP NEWS

Trump’s Truth Social app launches on Apple App Store

Donald Trump’s new social media venture, Truth Social, launched late on Sunday in Apple’s App Store, potentially marking the former president’s return to social media after he was banned from several platforms last year.
The app was available to download shortly before midnight ET and was automatically downloaded to Apple devices belonging to users who had pre-ordered the app, Reuters reported.

Some users reported either having trouble registering for an account or were added to a waitlist with a message: “Due to massive demand, we have placed you on our waitlist.” The app has been available for people invited to use it during its test phase, Reuters previously reported.

Russian finance ministry to consider central bank proposals on cryptocurrencies

Russia’s finance ministry said it would take proposals on cryptocurrencies from the country’s central bank into account so long as they do not contradict its own approach, paving the way for legislation governing digital assets, as per a Reuters report. A simmering dispute over cryptocurrency regulation in Russia heated up on Friday as the finance ministry submitted legislative proposals to the government that clashed with the central bank’s demand for a blanket ban.

The Bank of Russia has proposed banning cryptocurrency trading and mining due to the threat digital currencies pose to financial stability. But the finance ministry prefers legislation that regulates cryptocurrencies, allowing them as an investment tool, but not as a means of payment. The finance ministry’s draft legislation aims to create a legal market for digital currencies, it said on Monday.

One proposal is for transactions involving the purchase or sale of cryptocurrency requiring customer identification, a move that may diminish one of the cryptocurrencies’ major selling points – their anonymity. Other proposals include foreign cryptocurrency exchanges having to obtain a licence in Russia, and introducing financial literacy tests that determine how much individuals are permitted to invest.

Citizens who successfully pass the tests would be permitted to invest up to 600,000 roubles ($7,853) in digital currencies each year, the finance ministry said. Those who fail would have an investment limit set at 50,000 roubles annually.

Meta tells advertisers mixed reality could be a few years away

Technology that merges the virtual and physical worlds could start to become a reality for consumers in a few years, Facebook owner Meta Platforms has told advertising agencies, giving more details of its vision for the creation of the metaverse, according to Reuters.

Mixed reality (MR) technology could allow a person wearing an MR headset to use a real-world object to trigger a virtual world reaction, like hitting a video game character with a real world baseball bat, for instance. It is one of three types of extended reality technologies often associated with the metaverse.

Augmented reality exists, with mobile games like Pokemon Go, but players cannot affect the digital world with a physical object. Virtual reality headsets, like Meta’s Oculus, immerse users into a fully virtual world where they can interact with the environment.

The comments from Meta came on a Zoom call with ad agencies on Thursday, which was scheduled to help advertisers better understand the metaverse, said an agency executive who attended the call. It was Meta’s first roundtable discussion with agencies about the metaverse.

ISS supports Apple shareholder proposal on forced labor

Proxy advisory firm Institutional Shareholder Services (ISS) urged Apple investors to vote for a resolution demanding greater transparency in the iPhone maker’s efforts to protect workers in its supply chain from forced labor.
Apple will hold its annual shareholder meeting on March 4, Reuters reported.

Apple and independent third parties audited the company’s global suppliers in 2020 and found no evidence of forced labor, its latest proxy filing said. Apple also releases reports with information on the protection of its supply-chain workers.

But independent human rights investigators have reported that some Apple suppliers have participated in the Chinese government’s forced labor program in the Xinjiang region, “bringing into question the effectiveness of these policies and procedures,” ISS said in a report to investors.

A group of shareholders have asked Apple’s board to prepare a report on how the company protects supply-chain workers from forced labor. The request covers the extent to which Apple has identified suppliers and sub-suppliers that are a risk for forced labor, and how many Apple has taken action against.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ICICI Securities initiates coverage on Paytm with ‘buy’ rating

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

ICICI Securities initiated coverage on Paytm parent One97 Communications on Friday with a ‘buy’ rating. The brokerage assigned a target price of Rs 1,352 to the Paytm stock, which has hit a series of lows in the recent past. Paytm is optimising and monetising its user funnel to drive customer lifetime value.

The brokerage mentioned below-expected monetisation through the company’s financial services business and unfavourable regulatory outcomes as key risks.

According to ICICI Securities, Paytm calls for evaluation and assessment quite differently and distinctly, given its management’s high growth aspirations calling for significant investments and cash burn, rapidly evolving business model, highly competitive landscape with low switching cost, regulatory uncertainties and few unfavourable outcomes. 

Paytm has built a sizeable two-sided digital ecosystem with proven leadership in payments, commanding a market share of more than 40 percent mobile payments and more than 25 percent digital P2M transactions.

Here are some highlights of what ICICI Securities said on Paytm:

• Target addressable market signifies immense growth potential, reinforcing management vision
• Expect commerce GMV to grow at more than 30 percent over FY22-FY26E
• Some visibility on positive EBITDA margin post-FY26E
• Positive catalysts can swing earnings delta
• Consumer, merchant ecosystem core to Paytm biz model, unit economics

ALSO READ: How Street is reading new age cos’ Q3 results

One97 Communications shares hit a fresh low on Monday. At the current level, the stock is available at a discount to the tune of 62 percent to its issue price.

Stocks of new-age businesses such as Paytm have seen a series of losses in the recent past, mirroring the trend on the Nasdaq, where investors have suddenly lost appetite for highly valued tech and platform companies.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ICICI Securities upgrades Nestle to ‘add’, raises target price

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow