Profitmart sees 30% upside in Share India Securities shares in 18-month. Should you buy?
Stock to buy today: Share India Securities shares have been in bull trend since March 2023. After bottoming out at around ₹1,015 apiece levels in mid of March 2023, Share India Securities share price came out of the base building mode and it has been climbing to new life-time highs on a regular basis. Share India Securities share price today opened upside at ₹1,868.50 apiece on NSE and went on to touch new life-time high of ₹1,884.45 per share levels during morning deals, delivering to the tune of 85 per cent return to irs shareholders in last nine months.
Despite such a stellar return given by Share India Securities shares, Profitmart Securities sees further upside in this brokerage company’s stock. Profitmart Securities believes that Share India Securities share price may go up to ₹2,400 apiece levels in next 18-month. Share India Securities share price today is around ₹1,855 apiece levels, which means Profitmart Securities is predicting around 30 per cent upside in Share India Securities share price from current levels.
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Financials and valuations
Highlighting the business outlook and valuations of Share India Securities, Profitmart Securities report said, “On a consolidated basis, the company has reported a Topline and PAT of ₹1088.23 Crs and 330.66 Crs respectively for FY23 when compared to ₹856.50 Crs and 201.84 Crs in FY22 despite the headwinds faced by the stock market given the global issues. The company has healthy profitability with EBITDA and PAT margins of 45.27% and 30.07% respectively for FY23.”
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“On a rough cut basis, in FY24E, Topline is expected to touch ₹1479 crs, followed by ₹1849 crs in FY25E & ₹2218 crs in FY26. On the bottomline level we expect the company to record a PAT of ₹450 crs in FY24E which is expected to bounce back to ₹550 crs in FY25 & ₹675 crs in FY26. Thus on a conservative basis, Share India should record a EPS of ₹136.36 for FY24E which is expected at ₹166.67 for FY25E & ₹204.55 for FY26E.”
The brokerage went on to add that current PE on FY25E earnings is around 11x which we believe can easily trade at 15 to 16x going ahead looking at the sharp earnings growth, very strong growth seen in the F & O segment and its fintech focus which is unique and presents a strong growth time frame ahead.
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“Looking at Share India’s steady financial track record, strong product portfolio and unique offerings and strong promoters we expect the stock to get re rated in future. We continue to be positive based on the company’s future growth outlook in the F & O segment & its fintech approach which can help it scale up its operations aggressively ahead & believe that Share India looks attractive from a long term perspective,” Profitmart Securities report added.
Share India Securities share price target
On suggestion to stock market investors in regard to Share India Securities shares, Profitmart Securities report said, “We believe that the Share India Securities stock should be purchased at the current price for a price target of around ₹2400 over the next 18 months.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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Published: 01 Jan 2024, 02:27 PM IST
