Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Broking
We expect a considerable QoQ dip in top-line and bottom-line growth of
brokerage firms for Q4FY11. Total revenue is seen down on account of
lower business momentum in various verticals despite 5% QoQ jump in
ADT for the markets. The shrinkage in income and PAT is due to…..
…falling share of cash segment, yields and market share
The contribution of cash segment to total ADT (Average Daily
Turnover) is consistently sloping down. This segment contributed
20% in Q4FY10, which got stabilized at 16% in subsequent two
quarters, fell to 14% for Q3FY11 and is now down to historic low of
10% for Q4FY11. Falling share of cash turnover, rising share of low
yielding options segment is pressurizing broking yields. This along
with falling market share is curtailing growth from brokerage income
for Tier I players.
…Investment Banking took a set back
The primary market activity dried down completely in Q4FY11, due
to subdued market sentiment in the initial part of the quarter. M&A
activities also remained low. The revenues from this segment will be
hit accordingly.
…Slowing finance income
Thus interest income which was driving top-line growth on account
of IPO financing and vibrant markets has also taken a setback in
Q4FY11. Thus most verticals would be subdued, resulting in 21%
QoQ decline in total revenues of I-direct broking universe. EBIDTA
margins will be under pressure as well on account of flat operating
expense. The bottom-line growth is seen down 21%QoQ, 13% YoY.
We therefore maintain our cautious view on the sector, despite
compelling valuations.
Company specific views
Edelweiss Capital We expect a dip in market share and yields QoQ. IPO financing which shore up
top-line and bottom-line growth in Q3FY11 will be missing. We thus expect
21%QoQ dip in PAT for Q4FY11
India Infoline EBIDTA margin is expected to cool off significantly to 38%, down 980 bps QoQ, as
interest income is seen down. PAT margin is seen stable at 15%, despite 19% QoQ
fall in revenues.
Motilal Oswal We expect market share of 2.2% and yields at 5.4 bps for Q4FY11. IB and AMC
fees is seen flattish resulting in sequential fall in revenues and PAT
Source: Company, ICICIdirect.com Research
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Broking
We expect a considerable QoQ dip in top-line and bottom-line growth of
brokerage firms for Q4FY11. Total revenue is seen down on account of
lower business momentum in various verticals despite 5% QoQ jump in
ADT for the markets. The shrinkage in income and PAT is due to…..
…falling share of cash segment, yields and market share
The contribution of cash segment to total ADT (Average Daily
Turnover) is consistently sloping down. This segment contributed
20% in Q4FY10, which got stabilized at 16% in subsequent two
quarters, fell to 14% for Q3FY11 and is now down to historic low of
10% for Q4FY11. Falling share of cash turnover, rising share of low
yielding options segment is pressurizing broking yields. This along
with falling market share is curtailing growth from brokerage income
for Tier I players.
…Investment Banking took a set back
The primary market activity dried down completely in Q4FY11, due
to subdued market sentiment in the initial part of the quarter. M&A
activities also remained low. The revenues from this segment will be
hit accordingly.
…Slowing finance income
Thus interest income which was driving top-line growth on account
of IPO financing and vibrant markets has also taken a setback in
Q4FY11. Thus most verticals would be subdued, resulting in 21%
QoQ decline in total revenues of I-direct broking universe. EBIDTA
margins will be under pressure as well on account of flat operating
expense. The bottom-line growth is seen down 21%QoQ, 13% YoY.
We therefore maintain our cautious view on the sector, despite
compelling valuations.
Company specific views
Edelweiss Capital We expect a dip in market share and yields QoQ. IPO financing which shore up
top-line and bottom-line growth in Q3FY11 will be missing. We thus expect
21%QoQ dip in PAT for Q4FY11
India Infoline EBIDTA margin is expected to cool off significantly to 38%, down 980 bps QoQ, as
interest income is seen down. PAT margin is seen stable at 15%, despite 19% QoQ
fall in revenues.
Motilal Oswal We expect market share of 2.2% and yields at 5.4 bps for Q4FY11. IB and AMC
fees is seen flattish resulting in sequential fall in revenues and PAT
Source: Company, ICICIdirect.com Research
No comments:
Post a Comment