15 Days Price Change
Market Cap ₹ 19786Cr.
Current Price ₹ 12500
Lot Size 2
52W High ₹ 12500
EPS 600.73
P/B 9.8
Face Value 10
Debt to Equity 0
Stock P/E 20.8
Book Value ₹ 1282
Company
52W Low ₹ 10900
Demat Account Both
ISIN INE700G01014
Valuation
No. of Shares 1.58Cr.
Company Overview:
HDFC Securities, a subsidiary of HDFC Bank, was incorporated in fiscal 2000 as a joint venture between HDFC Ltd and HDFC Bank; Indocean e-Securities Holdings Ltd (Indocean) later joined as venture capitalist. The bank has increased its stake in HDFC Securities over a period. The bank holds 98.1% stake in HDFC Securities as on November 2017; the remaining 1.9% is held by the current and past employees of HDFC Securities. The company had a network of 262 own branches as on September 30, 2017; it also has an effective internet and call centre model.
HDFC Securities offers broking services both in the cash equity and derivative market segments including the currency derivative segment. The retail broking segment accounted for about 97% of total broking income for fiscal 2017. The income from broking activities was Rs 421 crore, and constituted around 76% of the total income for fiscal 2017. It also distributes third-party products, such as mutual funds, insurance, bonds, fixed deposits, initial public offerings, and non-convertible debentures. The company is one of the largest non-bank distributor for HDFC Life. It caters mainly to customers of HDFC Bank and is among the equity brokerage firms with the largest retail client base; it had over 2.0 million customers as on date. HDFC Securities remains a strong player in the cash segment, however its presence in the F&O market segment remains small.
Leading stock broking companies in India, and a subsidiary of HDFC Bank- a renowned private sector bank. As a stock broking company, serving a diverse customer base of retail and institutional investors, since 2000.
Company Timeline:
April 2000: Inception of HDFC securities. It was a joint venture among HDFC Bank Limited, HDFC Limited and Indocean eSecurities Holdings Limited. Inauguration of the first branch in Mumbai
May 2000: HDFC securities launched its own website
June 2000: Launched stock trading on Bombay Stock Exchange
August 2000: Launched stock trading on National Stock Exchange
November 2000: Introduction of online trading
August 2003: Rolled out online trading in Futures & Options
January 2006: Introduced online IPO/FD system that allowed investors to invest in IPOs and Corporate Fixed Deposits online
March 2008: Pioneered the concept of SIP in equities by launching Do-It-Yourself (DIYSIP) in equities and ETFs
December 2009: Launched BLINK: a trading engine that lets traders place stock orders at lightning fast speed,
November 2010: Launched state of the art website with several advanced features such as unified search option, single sign on, search engine friendly architecture, portfolio tracker and a robust research radar
February 2011: One of the first brokerage houses to launch mobile trading app for equity trading
June 2011: Rolled out Futures & Options on mobile trading platform
December 2011: Launched an exclusive mobile trading app for Android phones and Blackberry
March 2012: Launched an exclusive mobile trading app for iPhone
June 2012: Started offering National Pension System
August 2012: Launched Deep ORS, a sophisticated portfolio tracker that allows investors to trade
from their portfolio itself.
June 2013: Introduced e-filing of Income Tax Return
June 2013: Introduced online mutual fund service that allows customers to invest in mutual fund units through their trading account
July 2013: Took DIYSIP online whereby the investors can invest, track and manage their DIYSIP investments online.
Products and Services Offered:
HDFC securities provides a 3-in-1 Online Investment Account which is a combination of HDFC Bank Savings and Demat Accounts along with an HDFC securities trading account. Services:
Equities – Invest online in stocks of listed companies
Mutual Funds – Invest in mutual funds including equity, hybrid, tax saving or debt schemes from
asset management companies
SIPs – Systematic investment plan that allows automated investments
IPOs - Invest in initial public offerings (IPO)
Derivatives – Hedge or speculate on the price movement of stocks or index through its derivative products viz. Futures and Options
Bonds, NCDs & Corporate FDs – Invest in fixed income instruments such as bonds, NCDs and Corporate FDs
ETFs - Invest in exchange traded funds
Value Added Services - Provides investing and trading ideas, along with financial tools and calculators, tax solutions, will planning and robot advisors.
MCX - Invest in bullion, metals, energy and agricultural commodities
smallcases - Invest in a curated basket of stocks based on a theme or market trend
Competitive Strength:
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.
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.
Peer Comparison:
Financials:
Source: Company Filing Form AOC-4
Source: Company Filing Form AOC-4
Source: Company Filing Form AOC-4
Valuations:
Revenue of the company is continuously growing, even interest income of the company has seen a growth of 135.1% in FY22. The total revenue grew by 36.2% in FY 22 when compared to FY21. The growth is driven by favorable market conditions as well as market share gains from Domestic institutional investors(DIIs).
The PAT for FY 22 has increased at a good pace because of an increase in revenue by 36.2% which is higher than the increase in total expense and tax expense of 32.1%. This led to an increase of 40% in PAT year on year.
The company has seen a hike in its net profit due to favorable market conditions as well as an increase in operations and customer reach of the company.
Book value of the company is constantly increasing due to continuous rise in profit and retained earnings of the company. While security premium of the company has also increased in FY22 Rs 31.24 cr.
As the company is moving towards digitalization it is increasing its assets every year. In FY22 it has increased its loan deposits as well as deposits in other banks which led to an increase in total assets by 66.4% in F22 in comparison to FY21.
The debt to equity ratio of the company has increased due to the sudden rise in short-term borrowings the company. As the company has raised around Rs. 2,578.71 Cr. by issuing commercial bonds. But it's still lower and better than its peers.
In FY22 company has seen huge rise in its return on equity, they have increased its equity by keeping its profits as reserves and has also provided good amount of dividend to its shareholders.
News:
Yes trading in unlisted shares is undoubtedly legal in India. The trading takes place in the over-the-counter market through various platforms like Sharescart.com.
No, SEBI does not regulate the unlisted share market but certain rules and regulations of SEBI are applicable in the unlisted market space as well, such as, the DP charges for each transaction, stamp duty, lock-in period and more.
You will get the best price for HDFC Securities Limited and a hassle-free buying experience only on Sharescart.com platform.
HDFC Securities Limited's unlisted shares can be easily purchased at Sharescart.com by following a few easy steps. Given below are the steps involved in the buying of these shares:
Step 1 - Confirmation on the number of shares you want to purchase of HDFC Securities Limited at a trading price.
Step 2 - Submission of the necessary document like your Client Master Report. Certain additional documents will also be asked for by our representative if required such as a cancelled cheque and your PAN Card if you are paying from a secondary bank account which is not mentioned in your CMR.
Step 3 - The Sharescart.com representative will share the account details so that you can transfer the trade amount into the account.
Step 4 - The shares of HDFC Securities Limited will reflect in your Demat account within 24 hours as soon as the payment is received and depending on the holidays. Our details would be available to you before the transfer.
HDFC Securities Limited's unlisted shares can be easily sold at Sharescart.com by following a few easy steps. Given below are the steps involved in the of selling of these shares:
Step 1- Confirmation on the number of shares you want to sell of HDFC Securities Limited and at what price you want to sell.
Step 2- At Sharescart, we will find a suitable buyer for you according to your requirements and if you accept the trade we will move on to the transfer and the payment aspect of the trade.
Step 3- The Sharescart representative will provide you with the Demat account details to transfer your HDFC Securities Limited shares. They will also notify you about the additional details required from your end before the transfer of shares such as client master copy, delivery instruction slip, and more.
Step 4- Once the transfer is complete, the payment would be credited to your bank account within 24 hours, depending on the holidays.
Over the years the minimum ticket size for investment has dropped as more and more people have started investing in the Unlisted market. Currently, the minimum ticket size for HDFC Securities Limited is between 30K to 50K.
Brokers or dealers provide you with a trading facility means you can buy and sell shares with your broker but when you buy shares the Depository holds your shares. There are mainly two depositories NSDL and CDSL.
If you want to check your shares in NSDL and CDSL you need to download the application (NSDL Speede App or CDSL myeasi).
The taxation on the HDFC Securities Limited shares may vary depending on 2 Factors:
Short-term capital
Unlisted shares - In unlisted shares, the taxation of short-term capital gain i.e. less than 24 months is taxable according to the investor's income tax slab.
Listed Shares - In listed shares, the taxation for short-term capital gains i.e. less than 12 months is at 15%
Long-term capital
Unlisted shares - The taxation for long-term capital gain i.e. more than 24 months is taxable at 20% with indexation benefits.
Listed Shares - The taxation for long-term capital gains i.e. more than 12 months is at 10% after an exemption of 1 lakh. There are no indexation benefits in listed shares.
According to the current rule issued by SEBI last year in August 2021, the lock-in period is brought down from 1 year to 6 months. This was done to entice more investors to invest their money in pre-IPO companies and startups. The lock-in period of HDFC Securities Limited varies depending on which type of investor you are:
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Sell or Purchase Share (Tentative Price)
