RATING

RECOMMENDATION

Buy

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Buy

Business Type

Traditional Business

RATING

RECOMMENDATION

Buy

Business Type

Traditional Business

Discover and get a complete analysis on HDFC securities Pre IPO - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News and get latest updates on HDFC securities Financial Statements.

ISIN

INE700G01014

Face Value

₹10.00

Total Share

1,57,66,575

Total Income

₹1,833.97 Cr

Profit After Tax

₹984.34 Cr

EPS

₹623.21

P/E

23.11

P/B

14.53

Market Capitalisation

₹22,703.87 Cr

Enterprise Value

₹26,424.45 Cr

Book Value

₹991.29

Intrinsic Value

₹40,680.00

Dividend Yield

3.80 %

Earnings Yield

4.33 %

Sector

Financials

Sub-sector

Stock Broking

Category

Unicorn

Cashflow - Operations

-₹1,161.85 Cr

Cashflow - Financing

₹1,589.05 Cr

HDFC Securities Growth

Compounded Sales Growth

  • 36.21%

    1 Year

  • 27.17%

    5 Year

  • 26.05%

    9 Year

Pro Only

Compounded Profit Growth

  • 39.97%

    1 Year

  • 35.45%

    5 Year

  • 34.84%

    9 Year

Pro Only

Return On Equity

  • 62.73%

    2022

  • 36.85%

    2018

  • 19.29%

    2014

Pro Only

About HDFC Securities

  • HDFC Securities Limited, a stock broking company, provides brokerage services in the capital markets in India. Its product portfolio includes various asset classes, such as stocks, derivatives, mutual funds, fixed deposits, NCDs, insurance, bonds, and currency derivatives. It also provides home, personal, auto, and education loans, as well as loans against shares. In addition, the company offers life and general insurance products.
  • The company is a stockbroking and distribution arm of the HDFC group. It is a corporate member of both the BSE and the NSE. 
  • The company had 216 branches across 159 cities/towns across the country and also has multiple digital platforms to enable its customers to have easy access to its products. 
  • It has a customer base of 27.26 lakh to whom it offers an exhaustive range of investment and protection products.
  • They started with equity trading and later rolled out derivatives trading. Now the company provides the option to trade with via multiple platforms, namely online, mobile, telephone or through any of company branches.
  • HDFC securities was incorporated in April 2000 as a joint venture of HDFC Bank Ltd, HDFC Ltd and Indocean securities Holdings Ltd, and has registered office in Mumbai.

  • HDFC Securities Merger & Acquisition

Acquisition

  • HDFC Bank and HDFC Securities acquired a 7.4% stake in Virtuoso Infotech Pvt. Ltd. on June 28, 2021.
  • HDFC Bank acquired additional 27.82% stake in HDFC Securities on September 14, 2013. HDFC Bank acquired 4.28 mn shares thereby increasing its holding from 62.06% to 89.88%. HDFC Securities reported revenues of INR 2.3 billion, total assets of INR 5.4 bn and net income of INR 668.2 mn for the year ending March 31, 2013.
  • On April 19, 2021, Virtuoso Infotech Private Limited will issue 840 compulsorily convertible preference shares with a face value of INR 10 per share at an issue price of INR 7,143 per share for a total gross proceeds of INR 6,000,120. HDFC Securities and HDFC Bank will each contribute INR 3,000,060 to the deal. Following the transaction, HDFC Bank will own 7.2% of the company on a fully diluted basis, both directly and indirectly.

Investments

  • Borderless Softtech Private Ltd. announced that it has received $1 million in its pre-series A round of funding on October 1, 2021. The transaction included participation from new investors, HDFC Bank Ltd., Investment Arm and HDFC Securities Limited.
  • HDFC Securities Subsidiaries

HDFC Securities doesn't have any subsidiary and it is a arm of HDFC Bank.

HDFC Securities Business Model

In India's capital markets, HDFC Securities Limited, a stock brokerage firm, provides brokerage services. Its product offering comprises equities, derivatives, mutual funds, fixed deposits, NCDs, insurance, bonds, and currency derivatives, among other asset classes. It also offers mortgages, personal loans, auto loans, and school loans, as well as stock loans. In addition, the firm provides life and general insurance.

Throughout the company's 21-year history, the goal has been to be on the bleeding edge of technology and give consumers with tools and products that assist them manage their investments.

  • HDFC Securities Revenue Segmentation

  • Broking and Fee Income
  • Sale of services
  • Net gain on fair value changes
  • Interest Income
  • Other Income
  • HDFC Securities Product & Services

  • Broking
  • Distribution
  • Loans
  • Insurance
  • Smallcase
  • Investment portfolio service
  • Research advices
  • Fixed income investment products
  • Currency trading platform
  • Demat and trading Account
  • HDFC Securities Assets

As of 31st Mar'22, HDFC Securities has fixed assets of worth Rs.110.22 Cr.


AssetsAmount in Rs.
Leasehold imp in building on op. lease5.83 Cr
Office premises9.18 Cr
Electricals0.05 Cr.
Furniture and fixtures1.11 Cr.
Vehicles3.55 Cr.
Office Equipment1.58 Cr.
Computer  Hardware, Network & serves

54.71  Cr.

Computer Software19.68 Cr.





  • HDFC Securities Industry Overview

Industry Statistics

  • Indian brokerage industry has been undergoing structural shift from percentage led business model to flat brokerage & subscription based model.
  • Broking industry has seen lot of changes and evolvement in past decade, led by disruptions from discount brokers, buoyancy in equity markets, digitalization and increased interest among various investor groups.
  • India’s stock market penetration, in terms of investors, is substantially lower at ~1-2% of the population as compared to ~20% in developed market, leaving lot of room for growth.
  • During pandemic, there was massive increase of participants in the capital markets. People were on a constant lookout for avenues of income generation and investment. These new entrants were from Tier II and Tier III cities as well. This speaks about the change in mindset of investors and their willingness to invest in equities, as opposed to their traditional go-to investment instruments such as gold, real estate etc. 
  • The brokerage market was valued at INR 135.0 Bn in FY 2016. In FY 2020, it reached INR 210 Bn from INR 195 Bn in FY 2019, expanding at an annual growth rate ~7.69%. 
  • As per information from the National Stock Exchange (NSE), the top 20 brokerage houses together accounted for about 84 per cent of overall active client accounts as of December 2020, up from 75 per cent as of March 2020 (57 per cent as of March 2019).
  • Digitization of the broking industry has brought technology-based benefits to investors, as cloud-based systems and IT enabled applications that form the broking industry’s backbone for those who are increasingly looking for easy-to-use, secure and hassle-free trading platforms. The digital transformation of the Indian broking industry accelerated in 2020 & 2021.
  • Even HDFC securities has aggressively highlighted their existing digital offerings to customers so that they can enjoy a seamless experience on digital platforms

Future Prospects

  • Indian stock broking industry is expected to clock a healthy growth on an aggregate basis, small-and-mid-sized brokerage companies are expected to face greater operational and funding challenges, which could have a bearing on their performance in terms of growth and profitability.
  • Low-cost trading, deeper penetration of smartphones, faster internet, and simplification of trading applications will make it possible for an increasing percentage of people across age groups to trade with ease. 
  • India is expected to be the fourth largest private wealth market globally by 2028.

Government Initiatives

  • To make the markets more transparent and increase retail participation – SEBI introduced digital account opening and margin pledge mechanism.
  • As per SEBI regulations introduction of margin pledge is the only mechanism for collection of upfront margin in the form of shares. Shares to remain in customer’s account and pledge is marked in favor of the broker.
  • In FY21 more than USD 5 lakh Cr. of stimulus coming from the US Government, Federal Reserve etc. This could keep global liquidity on the higher side. Foreign net flows to emerging market equity and debt portfolios slowed in March 2021 to their weakest in almost a year as rising US yields continue to weigh on EM, with flows excluding China barely making a blip last month.
  • SEBI allowing digital account opening without any physical presence of customers or paper requirements in April'20 immensely contributed in helping the company open accounts throughout the length and breadth of the country. 

HDFC Securities Awards & Achievements

  • 2019: Enterprise Mobility - BFSI Digital Innovation Awards 
  • HDFC securities ranked ad India’s most attractive brands in the retail broking category
  • 2018: India’s most ethical company in financial services award by world CSR congress 
  • 2018: Winner of the Economic Times BFSI Innovation Tribe awards for conversational investing.
  • 2017: Winner in "Retail Broking" category by Outlook Money
  • 2016: Runner up in the "Best e-brokerage House" category by Outlook Money
  • 2015: Runner up in the "Best e-brokerage House" category by Outlook Money
  • 2014: Zee Business – India's Best Market Analyst Award 2014 under Equity Banking
  • 2014: "Best Financial Markets Technology Implementation of the Year" award by The Asian Banker
  • 2013: Runner up in the "Best e-brokerage House" category by Outlook Money
  • 2012: Runner up in the "Best e-brokerage House" category by Outlook Money
  • 2011: "Largest e-brokerage house" by BSE-Dun & Bradstreet
  • 2010: Runner up in the "Best e-brokerage House" category by Outlook Money

HDFC Securities Strengths

  • HDFC Securities Ltd is a part of the HDFC Group and enjoys the benefit of its brand name.
  • Major focus of the company is on customer satisfaction. Since pandemic company's customer connect and conversations have been more tenacious, with the hope of providing investment avenues as a preparedness for Covid-induced uncertainties
  • HDFC provide Integrated 3-in-1 account sol.(banking, broking, and demat accounts). This makes HDFC extremely convenient trading platform.
  • In FY 2022, HDFC securities had over 1.2 million transacting customers, featuring in the top 5 of all broking houses in India.
  • HDFC securities 1 Million+ active customers accessing its services digitally, increased to 92% from 79% in previous year.
  • As of 31st Mar'22 the company had above 200 branches across147 cities/towns at the end of the year.
  • In the area of Margin Trade Funding (MTF), the average book size during the year was Rs.2,992 Cr, which is 221% higher than the average book size of  Rs. 932 Cr in the last financial year. The book size at the year-end stands at Rs.3,288 Cr.
  • HDFC Sec have created our basket comprising bluechips called it HRITHIK. It allows customers to invest in thematic investment portfolios at the click of a button.

HDFC Securities Shortcomings

  • Company’s borrowings have increased by 126%, in comparison to FY21, primarily due to its expansion plans.
  • HDFC Securities brokerage is very high and not negotiable. It makes investors switch to other platforms.
  • HDFC does not have a strong presence in rural areas, while with digitalization and development, they will need to cover that market as well. 

HDFC Securities Opportunities

  • Many people from tier 1 and tier 2 cities are looking to invest in the stock market and the company can target these new customers and increase its penetration in the market.
  • Company can use digital solutions for business/collections this will improve efficiency and reduce cost of operations.
  • India’s stock market penetration, in terms of investors, is substantially lower at 1-2% of the population as compared to 20% in developed market, leaving lot of room for growth.
  • With recent trends clearly suggesting consumer preference shifting towards service oriented product offering i.e discount brokerage plans, traditional brokers have now started launching their own discount plans in order to attract clients, HDFC can also look for growth in these segments.
  • Indian broking industry though has a transaction fee model but its structurally moving for a clear distinction between charges for transaction and fee based model for services like wealth management and investment advisory. This leaves space for the company to work on.
  • Industry has taken an evolutionary leap today by offering relevant products to customers through comprehensive and intuitive digital platforms. the company should work in this domain to grow further.

HDFC Securities Threats

  • There is an increase in competition from other new-age companies like Zerodha and Upstox.
  • The competitive environment has changed dramatically for full-service brokerage firms. Until the mid-1980's, these firms dominated the landscape. Securities regulations mandated a level playing field that gave firms little beyond their image and reputation to differentiate themselves. Also price deregulation and technological advances dramatically changed that paradigm. A new breed of specialized firms and discount brokers appeared on the scene, offering services at vastly lower costs.
  • Due to the ease with which firms can enter and exit an industry, the number of substitutes in the same product line at different prices poses a risk of losing the investor base.
  • The number of cybercrime incidents has increased with the advancement of the digital era. Because the firm's operations are entirely online, there is a higher risk of fraud and the loss of investors' personal information.
  • Government policies in various countries change on a regular basis. Furthermore, political unrest in the country may distort trading cycles and have a negative impact on stock markets.
HDFC Securities Rating

  • RECOMMENDATION

    Buy

  • HDFC Securities Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

last Updated

14/03/2022

Registered Date

01/04/2000

Planify Ticker

hdfcs

Reg Office: Think Techno Campus, Building, B, Alpha, Office Floor 8, Near Kanjurmarg Station, Kanjurmarg (East), Mumbai -400 042

Website Visit

Frequently Ask Questions

Please find below the procedure for buying stock_name_auto Unlisted Shares at Planify.
• 1. You confirm booking of stock_name_auto Unlisted Shares with us at a trading price.
• 2. You provide your client master report (ask the broker if not available) along with PAN Card and Cancelled Cheque in case you are not transferring funds from the bank account as mentioned in the CMR Copy. These are KYC documents required as per SEBI regulations.
• 3. We will provide the bank details.
• 4. You need to transfer funds in that account.
• 5. Payment has to be done in RTGS/NEFT/IMPS CHEQUE TRANSFER. No CASH DEPOSIT.
• 6. Payment has to be done from the same account in which shares are to be credited.
• 7. We will transfer the shares in 24 hours if funds are credited before 2 pm.
Important Note: Please note that the lock-in period for selling stock_name_auto Unlisted Shares is 6 months after listing. Hence you can’t sell stock_name_auto Unlisted Shares which you bought in Pre-IPO for 6 months after its listing. i.e. You can sell it only after 6 months calculated from the listing date.

Please find below the procedure for selling stock_name_auto Unlisted Shares at Planify.
• 1. We will confirm our buying price of stock_name_auto Unlisted Shares.
• 2. We will give you our client master report and you will transfer the stock_name_auto Unlisted Shares to our demat account.
• 3. We will ask for bank details of yours once the stock_name_auto Unlisted Shares are received in our demat account..
• 4. We will transfer the funds in your bank account within 24 hrs of receiving the stock_name_auto Unlisted Shares.
• 5. Payment will be made in RTGS / NEFT / CHEQUE TRANSFER/IMPS. No CASH DEPOSIT.
• 6. Payment will be given in the same account which is linked to demat account or you need to provide the cancelled cheque shows your name to verify. As per SEBI regulations, the transfer of funds in the third party account is not legal and our policy refrain us from doing so.
Note: The price at which we are buying the share is fixed for 3 days. If you cant sell your stock within 3 days, then the price of that day will be applicable when we receive shares in our demat.

Lock-in period of stock_name_auto Unlisted Shares depends upon category of investors.
• 1. Venture Capital Funds or Alternate Investment Fund of Category -I or II, or Foreign Venture Capital Investor - lock-in Period of 6 months from the date of acquisition of stock_name_auto Unlisted Shares.
• 2. Other Investors (include Retail, HNIs or Body Corporate) lock-in Period of 6 months from the date of listing of IPO of stock_name_auto Unlisted Shares.
This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.

DIS - Delivery Instruction Slip is the way through which an investor can sell or transfer the stock_name_auto Unlisted Shares from his/her demat account to any other demat account. There are two Types of DIS Slip.
1. Offline-DIS - This is an offline mode of transfer of shares wherein the investors needs to fill DIS form and give it to their broker for transferring the shares. Following are the fields which are required to be filled.
• a. ISIN number of stock_name_auto Unlisted Shares.
• b. Name of stock_name_auto Unlisted Shares
• c. Quantity of stock_name_auto Unlisted Shares
• d. Cosideration Amount
• e. Target DP ID and Client ID
• f. Annexure
2. Online DIS - Some of the broker these days gives facility of transferring the stock_name_auto Unlisted Shares via online DIS. So, please check with your broker whether such facility is available or not. For example: Angel Broking proivdes the facility of Online-DIS from its platform. As an investor he/she simply needs to add a beneficiary into it and send the stock_name_auto Unlisted Shares by filling the details similar to Ofline-DIS.

In the last 4-5 years, the unlisted share market has become quite big and as a result of that, the ticket size has reduced from usual 5-10 Lac to 35-50k in today's scenario. So, via our Planify platform, if somebody wants to buy stock_name_auto Unlisted Shares then minimum investment would be 35-50k.

Yes, buying and selling of unlisted shares in India is 100% legal.

If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.

If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 20% with indexation benefits.

Taxes will remain the same irrespective of listing of shares, if bought in unlisted market. Actually, to be eligible for taxes as per listed market, one has to pay STT on buying and selling of shares. But, if you buy in unlisted and sell in listed market, one pay STT only on selling so, taxes of listed market will not be applicable.

If you buy stock_name_auto Unlisted Shares from Planify then these shares can checked in two ways. However, before we tell you the process of checking of shares, it is intimated that as per SEBI regulations, the shares can be transferred in demat account only.
Check credit of stock_name_auto Unlisted Shares Instantly?
• 1.You can download the NSDL or CDSL application from google play-store and check. If you want to check whether your stock broker is registered with NSDL or CDSL then check the following procedure.
• By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
• Demat Account = DP ID + Client ID. (16 Characters )
• "DP ID is the unique identification of the Broker. Every broker gets a unique number from CDSL or NSDL.By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
• Client ID is the unique identification of the Client. Every client gets this unique number which represents his/her portfolio.
• In CDSL, all these characters are numbers (1234567891234567) first 8 digits are DP ID and next 8 digits are Client Id whereas in NSDL the first two characters are letters which are in accordance with the country that you are from (IN12345678912345), then 6 unique digits for Broker and next 8 digits are client ID.
• Example:
• CDSL = 12345678(DP ID) and 91234567(Client ID).
• NSDL = IN123456 (DP ID) and 78912345(Client ID).
• Check in brokers application?
• Credit of stock_name_auto Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.

The stock_name_auto Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.

The price of stock_name_auto Unlisted Shares can be checked in two ways. First, you can join our telegram channel where on daily basis we share the latest prices of all the unlisted shares in the morning and secondly, you can register on Planify.live platform to see the historical graphs and prices of all the shares at one place.

If you see the thesis of investment in the unlisted shares then it is being done mainly to take the advantage of IPO market. And, if the IPO plans of company get delayed due to market conditions or any other reason then demand suddenly drops in the market. The unlisted market works mainly on demand and supply and if there is no IPO news then getting exit would be difficult.

"Planify is India's fastest and leading marketplace to buy and sell unlisted shares. In the last 3 years, we have already served more than 1 million users on the platform. The total transactions value done from the platform is already more than 100 Crores. The name of our Co-founders Mr. Umesh Paliwal and Dinesh Gupta publish regularly in leading newspapers like MoneyControl, Business-Standard, ET etc for their views on IPO and Unlisted market. In the last 3 years, Planify has made a good name for itself in the industry and gained a trust of their users. So, the new investors should not be worried about any kind of fraud that is mostly happens with unkown brokers in the market while doing investment with Planify."

We at Planify do the valuation based on 2 methods.
• 1. We check the last funding that is being done in the stock_name_auto Unlisted Shares to ascertain the benchmark valuation.
• 2. If there is no funding happened in the company, then we try to find a business similar to stock_name_auto Unlisted Shares in the listed space and do comparison method to ascertain the valuation.
As an investor in the unlisted space, we would always recommend that you must check all the risk parameter carefully before investing in the unlisted space.

We source shares either from the employees or initial investors looking to liquidate their stock_name_auto Unlisted Shares.

Pre-IPO shares means which are planning for an IPO in near future. So, all the shares which are traded on the platform are not Pre-IPO Shares. However, if the company's business is going good and then demand will always be there in the unlisted space, so even if the IPO does not come, the investors can easily liquidate their stock_name_auto Unlisted Shares in the unlisted market itself.

Rules and regulations of SEBI are applicable in the Unlisted space like lock-in period of 6 months, paying of Stamp Duty, and DP Charges for every transaction etc. However, to become an unlisted broker there is no such regulation by SEBI as of yet.

For tracking news and other information about stock_name_auto Unlisted Shares, one can visit our website wherein we post news and other information on daily basis and one can also join our telegram channel.

Fundamental & Comparative valuation models and the forces of demand and supply in the market for unlisted shares dictate the price. These prices are based on our estimates and transaction history of stock_name_auto Ltd unlisted share.

We can generally arrange lot sizes starting with an investment of INR 20,000. To confirm the lot sizes of stock_name_auto Ltd unlisted shares with us.

The financials of stock_name_auto Ltd which includes the P/L of stock_name_auto Ltd and the Balance Sheet of stock_name_auto Ltd is in the financials section.

The annual report of stock_name_auto Ltd is available in the annual report section.