IIFL SECURITIES – Solid FIN TECH play on rising household financial savings

Market Cap-1500 cr

CMP-45

  • Business Overview- IIFL Securities offerings
  • Broking: Retail/ Institutional
  • Investment Banking
  • Distribution
  • Broking_ Strong Presence in Institutional & Retail space

Strong presence in 2500 locations covering 500 cities. Total retail customers in IIFL sec are 8.5 lac.

Business offerings comprise equity, commodities and currency broking, DP services portfolio
advisory, distribution of mutual funds, bonds, portfolio management services, alternative
investment funds and other investment products.

Strong online presence with industry leading mobile apps and web trading platform. Investing on platform targeting High Value Traders to gain market share.

Huge potential in APP based self-serviced trading

  1. RM/Branch Serviced- Customer 4,25,000
  2. Self-Serviced APP based- Customers 4,00,000

Institutional Broking- Among the top franchises on the street. 600+ institutional (domestic and foreign) clients.

  • MF_ Platform’s explosive growth potential

IILF’s Mutual Fund AUM stands at 3,500 cr. Customers’ SIP transactions per month are at 89,000, IIFL’s SIP AUM stands at 700 cr. Total AUM which includes AIF, MF, Loans & Insurance stands at 9,000 cr, MF distribution is around 40% of total AUM

The company has a superior MF APP dedicated only for SIPs and MF transactions that require zero human touch. Customers’ SIP transactions per month are at 89,000.

Due to a superior technological platform, the SIP AUM business offers huge potential in terms of higher than average incremental ROCE of the company and higher operating leverage.

  • Investment Banking

Rapidly growing franchise_ ranked no 1 in the league tables in FY18 and FY19 in equity raising for private sector corporates. Strong pipeline and product diversity with presence in ECM,
Private Equity and DCM. Advising a large number of corporates on private equity and
advisory transactions

  • High Quality Portfolio of Real Estate Asset

Self-occupied building area of 412,000 sq. ft. Commercial office space and shop area of over 222,000 sq. ft.
Spread across six business locations – MMR, Gurgaon, Chennai, Hyderabad, Pune and Ahmedabad.
Total area of over 634,000 sq. ft. with annual rental of Rs.53 cr. Fair market value of over Rs750 cr. Fixed rental income of 53 cr gives additional comfort on the bottom-line.

  • AUM Break Up

Rs 8300 cr :

  1. 41% MF
  2. 14% AIF
  3. 11% Loan
  4. 4% PMS
  5. 3% MLD
  6. 27% Others
  • Financials

At current market cap 1,500 cr and FY20 estimated PAT 160-180 cr (ex rental), IIFL sec is available at an attractive valuation of 10x. Given the advanced technological platform of its broking & MF App, IIFL Sec is well placed to capture market share in its space.

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