A stock broker reacts during market hours in a dealing room in Mumbai, India. (Photographer: Prashanth Vishwanathan/Bloomberg News)

ICICI Securities Rated New Buy At CLSA

ICICI Securities Ltd. has received its first brokerage rating after making a weak stock market debut over two months ago.

Global brokerage CLSA initiated coverage on the stock with a 'Buy' rating citing financialisation of household savings and its ability to leverage parent ICICI Bank’s brand and reach. It’s the first rating on the stock by a brokerage, according to Bloomberg data.

We forecast a 17 percent revenue compounded annual growth rate over FY18-21, led by an expanding client base and rising wallet share among customers.

Also read: ICICI Bank To Sell 2% Stake In Life Insurance Arm

CLSA has a 12-month target price of Rs 520 apiece on the stock, which implies a potential upside of over 40 percent.

However, for investors who bought the shares in the initial public offering, it just means recovering their losses. The broking firm listed below its IPO price of Rs 520 apiece after it reduced its issue size due to the tepid response from high networth and retail investors.

Currently, the stock is trading at up 1.9 percent to Rs 361 apiece. Trading volume was 7 times the 20-day average.

Also read: ICICI Securities Reduces IPO Size After Failing To Enthuse Wealthy Investors