HDFC Securities Limited Unlisted Shares|Latest Share Price & Updates
Company Overview
Incorporated in 2000, HDFC Securities started as a joint venture between HDFC Bank Ltd, HDFC Ltd and Indocean Securities Holdings Ltd. Over the period, this HDFC group company has emerged as one of the leading stock broking companies of India offering a full bouquet of investing services including equities, bonds, currencies, commodities, mutual funds, IPOs, derivatives, tax planning, thematic investing, investment advisory services etc.
As on 31-March-2021, HDFC securities Ltd is the subsidiary of HDFC Bank Ltd with 96.34% shareholding. The company has been a consistent dividend payer since the past 6 years. During FY 2021, HDFC securities declared a dividend of ₹ 318 per share (against last year’s dividend of ₹ 135 per share).
The HDFC Securities share price have more than doubled from around ₹ 7200 in the last one year since the company announced its aggressive growth plans by entering into the discount brokering segment and compete with Zerodha and Upstox.
As on 31-March-2022, there were 1,58,28,975 outstanding equity shares and 95.96% of the shareholding was owned by HDFC Bank. At an unlisted share price of Rs 13,000 per share, the total market cap of the company stands at around Rs 20,500 crores and P/E ratio of 20.90 (13000/621.78).
The company has been a consistent dividend payer in the recent past as per following trends:
FY 2022: ₹ 547 per share
FY 2021: ₹ 318 per share
FY 2020: ₹ 135 per share
FY 2019: ₹ 110 per share
FY 2018: ₹ 110 per share
Business Model
HDFC Securities provides tech-enabled online investing services to its retail and institutional clients across all asset classes- equities (including IPOs), fixed-income bonds, derivatives, commodities and currencies. The company also offers its clients an option to invest online through mutual funds and ETFs.
The company also cross-sell its premier and high value services like portfolio management services, securities lending and borrowing, margin trading, thematic investing, tax planning, global investing in USA stocks, personal loans and insurance products.
The company’s products and services are easily available through omni-channel platforms including web, mobile app, telephone and physical branches.
As on 31-March-2022, HDFC securities ranked in top-5 brokering companies in India, with over 12 lacs active customers. The company is present across 147 Indian cities with more than 200+ branches.
Registered Address
The registered office of the company is located at Think Techno Campus Building, Near Kanjurmarg Station, Kanjurmarg (East), Mumbai, Maharashtra.
Key Partners– HDFC Life Insurance , Aditya Birla Life Insurance , TATA AIA Life Insurance , MAX Bupa , HDFC Ergo, ICICI Prudential MF, HDFC MF, NIPPON INDIA MF, SBI MF, AXIS MFS, ETC.
| Symbol | HDFC Securities Ltd. |
|---|---|
| Face Value (₹): | 10 |
| ISIN: | INE700G01014 |
| Demat Status: | NSDL & CDSL |
| Lot Size: | 5-10 Shares |
Board of Directors:
| Name | Designation | Profile |
|---|---|---|
| Mr.Ashish Kamalkishore Rathi | Whole Time Director |  |
| Mr.Abhay Aima | Director |  |
| Mr.Amla Samanta | Director | |
| Mr.Bharat Shah | Director | |
| Mr.Jagdish Capoor | Director | |
| Mr.Malay Yogendra Patel | Independent Director | |
| Mr.Samir Vijay Bhatia | Director | |
Key Highlights of HDFC Securities Share Price
- HDFC Securities stock has been a consistent compounder in the recent years, by more than doubling in the last 2 years. The company has been quite aggressive in growing its business by entering into the zero-brokerage segment and competing with Zerodha and Upstox.
- High business growth with around 26% Revenue CAGR during the last 4 years. The low-equity market penetration levels among Indian retail investors (just 4%) leave enough room for the whole industry to grow by at least 20% annually during the next 5-6 years.
- Diversified business model with both retail and institutional clients, with an opportunity to cross sell high-margin products.
- Backed by reputed parent HDFC Bank, HDFC Securities ranks among the top- 5 stock broking companies of India.
Ratio
| Ratio | FY23 | FY22 |
|---|---|---|
| Operating Margin | 71% | 74% |
| Net Profit Margin | 41% | 49% |
| Return on Equity | 43% | 59% |
| Debt-Equity | 2.92 | 2.79 |
| Current Ratio | 1.27 | 1.26 |
| Dividend Payout | 90% | 88% |
Note:- Dividend payout = Total Dividend/Net Income.
It indicates, how much % of its Net Income, the company is paying out as dividend to its Shareholders.
Financial Highlights
Annual Result
| Particulars | 2022-2023 | 2021-22 | 2020-21 | 2019-20 | 2018-19 |
|---|---|---|---|---|---|
| Total Income (₹ Crores) | 1,891.63 | 1,990.31 | 1,399.43 | 862.26 | 782.05 |
| PAT (₹ Crores) | 777.22 | 984.34 | 703.22 | 384.15 | 329.82 |
| Diluted EPS (in ₹) | 489.84 | 621.78 | 446.54 | 245.91 | 210.64 |
| Book Value per Share (₹) | 1130.66 | 1047.4 | 939.0 | 793.0 | 765.0 |
| Equity (₹ Crores) | 1797.14 | 1,657.91 | 1,480.31 | 1,247.60 | 1,193.76 |
Quarterly Result
| Particulars | FY23-Q1 | FY23-Q2 | FY23-Q3 |
|---|---|---|---|
| Total Revenue (₹ Crores) | 432 | 468 | 505 |
| EBITDA (₹Crores) | 325 | 337 | 358 |
| PAT (₹ Crores) | 189 | 191 | 203 |
| PAT% | 44% | 41% | 40% |
| EPS | 119.59 | 120.59 | 128.10 |
Note :-
| 1) During FY23, company had declared & paid 3 Interim Dividends:- | ||
| Interim Dividend-1 | ₹ 110 | |
| Interim Dividend-2 | ₹ 110 | |
| Interim Dividend-3 | ₹ 110 | |
| Total Interim Dividend Per Share | ₹ 330 | |
| 2) During the FY23, the Company had issued commercial papers of ₹14,06,600 lacs and redeemed commercial papers of ₹13,75,000 lacs. | ||
Financial Charts
Shareholding Pattern
Peer Comparison
| Company | Market Cap (₹ Crores) | Profitability Margin (%) | ROCE (%) | ROE (%) | D/E Ratio | P/E Ratio | P/B Ratio | Book Value per Share (₹) |
|---|---|---|---|---|---|---|---|---|
| HDFC securities | 19066 | 41% | 69% | 43% | 2.92 | 24.49 | 10.61 | 1130.66 |
| Motilal Oswal Financial Services Ltd. | 13490 | 22% | 13% | 16% | 1.64 | 9.46 | 2.14 | 423.00 |
| ICICI Securities Ltd | 20006 | 40% | 18% | 42% | 3.30 | 18.00 | 6.99 | 88.40 |
Media Updates
“HDFC Securities Ltd – Q1FY22 result update”
- Brokerage Income has increased by 47% to Rs. 349.11 Crs in Q1FY22 (v/s Rs. 237.22 in Q1FY21).
- Interest Income has jumped up by 194% to Rs. 95.51 Crs in Q1FY22 (v/s Rs. 32.48 Crs in Q1FY21).
- Total Income has increased by 65% to Rs. 455.54 Crs in Q1FY22 (v/s Rs. 275.31 Crs in Q1FY21).
- PAT stands at Rs. 251.10 Crs in Q1FY22 (v/s Rs. 129.72 Crs in Q1FY21). This is a stellar jump of 94%y-o-y.
- Book value stands at Rs. 982 per share as on 30th June, 2021.
- Company has declared an interim dividend of Rs. 120 per share.
“HDFC Securities Ltd – Q1FY2021 Result Highlights”:
- Brokerage Income & Fee Based Revenue– Rs. 237.22Crore (June 2020) v/s Rs. 147.37 (June 2019).
- Total Income– Rs. 275.31 Crore (June 2020) v/s Rs. 182.64Crore (June 2019).
- PAT– Rs. 129.72 Crore (June 2020) v/s Rs. 66.51 Crore (June 2019).
- EPS– Rs. 82.47 per share (June 2020) v/s Rs. 42.59 per share (June 2019).
- Net- worth stands at Rs. 1297.60 Crore & Book Value – Rs. 824.39 per shares on 30th June 2020.
- Interim Dividend paid during the quarter – Rs. 56 per share.
HDFC Securities plans to add 200,000 customers a month till March next year
Brokerage firm HDFC Securities is looking to add 2 lakh customers every month till March next year and grow topline by 20-25 per cent over the next five years.
The company’s customer addition during the pandemic was low in absence of an online demat account opening facility and onboarding of only parent bank customers.
The brokerage arm of the second-largest lender HDFC Bank has been adding 1.5 lakh customers since it began on-boarding non-HDFC Bank customers and upgraded its tech capabilities to onboard them online since this June, managing director and chief executive Dhiraj Relli said.
As a result, it has a customer base of 3.7 million now, which was 2.7 million in March this year and 2.4 million in March 2020, he said.
Read more here:
Frequently Asked Questions
The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid.
The procedure to buy the HDFC Securities unlisted shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller.
When the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day.
In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.
The HDFC Securities unlisted shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.
The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for HDFC Securities, please visit the stock page on our website: https://delistedstocks.in/current-offerings/hdfc-securities-ltd/
There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares.
Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR (Unique Transaction Reference) number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares.
If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor. If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.
The trading in unlisted shares is governed by Securities & Contract (Regulation) Act,1992 which comes under the preview of SEBI. The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors.
The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange.
Yes, NRI’s can also buy and sell HDFC Securities unlisted shares just like domestic investors. But their investment is on a non-repatriable basis.