Fundamental Analysis

IIFL SECURITIES 

Ticker : 542773
BUY : Rs 57.35
Target : Rs 65

IIFL Securities advisory and broking services, financial products distribution, institutional research and investment banking services. On a standalone quarterly front, the company reported net sales of Rs 158.01 crore in Q4FY20, down by 2.57 per cent from Rs 162.18 crore in Q4FY19. The operating profit of the company came in at Rs 87.33 crore in Q4FY20, expanding by 66.14 per cent from Rs 52.56 crore in Q4FY19. The company reported a net profit of Rs 58.68 crore in Q4FY20 and Rs 25.51 crore in Q4FY19, increasing by 130.06 per cent. Indian households hold less than 5 per cent of their assets in financial products and this presents a good opportunity for companies in the financial products and brokering businesses to grow. Recent trends in digitalisation and financial inclusion has helped in accelerating the process of financial intermediation. Owing to these growth prospects and impressive quarterly performance, we recommend a BUY.