High RoE stock: ICICI Securities closes at life high

ICICI Securities is one of the direct beneficiary of such growing equity culture in India. 

ICICI Securities is one of the few stocks that are expected to benefit from the new wave of equity culture in India. We have already seen CDSL and BSE stocks outperform in the markets with the advent of new investors and traders thereby, increasing their participation in the market. As per the latest record available with BSE, as many as 7 crore unique client code (UCC) are registered with the stock exchange and that is a new record. 

ICICI Securities is one of the direct beneficiaries of such growing equity culture in India.  

The stock, trading at Rs 658 per share is at its all-time highs, reflecting the positive outlook on the ground for the broking industry. With a growth in net profit of 111.36 per cent, the company has declared ‘very positive results in March 2021’. The company has declared positive results for the last six consecutive quarters. The net sales (Q) were recorded at Rs 739.34 crore, the highest-ever. The PBDIT (Q) also was highest at Rs 485.79 crore. 

Technically also, the stock is in a bullish zone as indicated by MACD, Bollinger Band, and OBV.  Angel Broking, ICICI Securities' peer company also had a dream run and the stock was up by 153 per cent in 2021.  ICICI Securities is up by more than 41 per cent in one year; thus, underperforming Nifty.  

As far as frontline indices go, the short-term trend of Nifty continues to be positive and there is no indication of any reversal pattern unfolding at the highs. One can expect high volatility in the coming market sessions.