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Share India Securities LtdQ2 FY23

Share India Securities Ltd Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹199P/E: 12.0Market Cap: ₹4.4K CrSector: Capital Markets

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2
  • Share India has shown strong growth, with Q2 FY ‘23 revenue increasing to INR 243 crores from INR 212 crores last year, a 68% YoY growth.
  • Profit after tax grew 68% YoY to INR 72 crores; PAT margin reached an all-time high of 30.9%.
  • The company targets continued growth similar to the best quarter achieved in Q2, aiming for sustainability and consistency.
  • Focus on retail business expansion, including launch of Algo-based trading product by February/March 2023 and growth of retail client base.
  • Retail client segment revenue share currently at ~35%, expected to exceed 60% of total revenue in next two quarters by adding institutional and prime broking segments.
  • Market share in auction segment around 6%, with diversification across subsidiaries including Share India Algo-plus to increase visibility and turnover.
  • Emphasis on technology-driven niche products targeting active traders rather than mass customer acquisition.
  • Overall optimistic on sustained revenue and volume growth, driven by adoption of advanced technology and expanding retail presence.

See what Share India Securities Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

The transcript provided from Share India Securities Limited's Q2 FY '23 Earnings Conference Call does not mention any current or planned future fundraising activities through debt or equity. Key points related to funding or capital include: - The company focuses on sustainable growth through capital utilization and diversification, without explicit mention of new equity or debt issuance. - No queries or responses during the call reference fundraising plans. - Emphasis is on organic growth via technology, retail business expansion, and product launches (Algo products). - Working capital benefits have been realized from operational improvements but no mention of external capital raising. Therefore, based on the transcript, there is no indication of any ongoing or planned debt or equity fundraising.

See what Share India Securities Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes
  • Share India Securities Limited has made strategic investments by acquiring and merging Total Securities Limited, which now operates as Share India Algo Plus, a wholly-owned subsidiary focused on expanding turnover and client base.
  • The company is investing in technology-oriented products, including launching the IBD platform in September and developing an Algo product for retail clients targeted for launch by February/March after regulatory approvals.
  • Capital expenditures include operationalizing the new membership (Share India Algo Plus) and launching advanced trading technologies such as Algo trading and SGX connector operations from Gift City, expected to be fully functional by March 2023.
  • Marketing budget is earmarked to be spent mainly on promoting the upcoming Algo products, while current marketing efforts are conservative and focused on niche customer targeting.
  • Overall, investments are geared towards technology enhancement, retail business expansion, and sustaining growth through diversified product verticals.

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Margin guidance

Category 3
  • Share India Securities has demonstrated strong growth with over 100% annual PAT growth over the last three years.
  • Q2 FY23 saw a PAT growth of 68% YoY and 22% QoQ; EBITDA margin improved to 47% from 31.5% last year.
  • Management is confident of continuing strong growth driven by technology focus and new product launches (e.g., Algo trading product expected by Q1 FY24).
  • Retail business focus is increasing, expected to contribute significantly to revenue (targeting >60% client-dominated revenue in near term).
  • Operating margin improvements are significant and expected to be sustained between current levels seen in recent quarters.
  • Growth is expected not just from broking but also from institutional and proprietary segments, augmented by acquisitions and technology enhancements.
  • Overall, management anticipates similar growth trajectory in earnings, operating profits, and EPS driven by client base expansion, market share consolidation, and product innovation over the next 2-3 years.

Order book

The transcript provided does not explicitly mention the current or expected order book or pending orders for Share India Securities Limited. The focus of the discussion is on: - Financial performance of Q2 FY '23 with strong profit after tax growth and revenue increase. - Emphasis on retail business growth and technology-driven offerings like Algo trading. - Client base expansion with 23,000+ total clients and active focus on active client participation. - Strategic initiatives including launching new products and memberships (Share India Algo Plus). - Market share maintenance (~6% in auction segment) and targeting niche algo trading clients. - Retail strategy targeting a two-year horizon for significant growth, not immediate mass customer acquisition. - Future product launches expected around February/March for Algo trading. No specific details about order book or pending orders are provided in the transcript.

How does Share India Securities Ltd rank vs peers in Capital Markets?

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