Content

  1. 1HDFC Securities Essentials
    1. 1.1 HDFC Securities ISIN
    2. 1.2 HDFC Securities Face Value
    3. 1.3 HDFC Securities Total Share
    4. 1.4 HDFC Securities Total Income
    5. 1.5 HDFC Securities Profit After Tax
    6. 1.6 HDFC Securities Promoter Holding
    7. 1.7 HDFC Securities EPS
    8. 1.8 HDFC Securities P/E
    9. 1.9 HDFC Securities P/B
    10. 2.0 HDFC Securities Market Capitalisation
    11. 2.1 HDFC Securities Enterprise Value
    12. 2.2 HDFC Securities Book Value
    13. 2.3 HDFC Securities Intrinsic Value
    14. 2.4 HDFC Securities Earnings Yield
    15. 2.5 HDFC Securities Dividend Yield
    16. 2.6 HDFC Securities Sector
    17. 2.7 HDFC Securities Sub-sector
    18. 2.8 HDFC Securities Category
    19. 2.9 HDFC Securities Cashflow - Operations
    20. 3.0 HDFC Securities Cashflow - Financing
    21. 3.1 HDFC Securities AUM
    22. 3.2 HDFC Securities AUM Growth
  2. 2 HDFC Securities Growth
    1. 2.1 HDFC Securities Compounded Sales Growth
    2. 2.2 HDFC Securities Compounded Profit Growth
    3. 2.3 HDFC Securities Return On Equity
  3. 3 About HDFC Securities
  4. 4 HDFC Securities IPO Details
  5. 5 HDFC Securities Funding
  6. 6 HDFC Securities Merger & Acquisition
    1. 6.1 HDFC Securities Merger
    2. 6.2 HDFC Securities Acquisition
    3. 6.3 HDFC Securities Investments
  7. 7 HDFC Securities Subsidiaries
  8. 8 HDFC Securities Business Model
  9. 9 HDFC Securities Revenue Segmentation
  10. 10 HDFC Securities Product & Services
  11. 11 HDFC Securities Assets
  12. 12 HDFC Securities Industry Overview
    1. 12.1 HDFC Securities Industry Statistics
    2. 12.2 HDFC Securities Future Prospects
    3. 12.3 HDFC Securities Government Initiatives
  13. 13 HDFC Securities Awards & Achievements
  14. 14 HDFC Securities SWOT
    1. 14.1 HDFC Securities Strengths
    2. 14.2 HDFC Securities Shortcomings
    3. 14.3 HDFC Securities Opportunities
    4. 14.4 HDFC Securities Threats
  15. 15 HDFC Securities Rating
  16. 16 HDFC Securities Detail Info

HDFC Securities Essentials

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

20.06

P/B

12.61

Market Capitalisation

₹19,708.22 Cr

Enterprise Value

₹23,428.80 Cr

Book Value

₹991.29

Intrinsic Value

₹40,680.00

Dividend Yield

4.38 %

Earnings Yield

4.99 %

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

    Neutral

  • 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

Visit Website