HDFC Securities, a subsidiary of HDFC Bank, was incorporated in fiscal 2000 as a joint venture between HDFC Ltd and HDFC Bank; Indocean e-Securities Holdings Ltd (Indocean) later joined as venture capitalist. The bank has increased its stake in HDFC Securities over a period. The bank holds 98.1% stake in HDFC Securities as on November 2017; the remaining 1.9% is held by the current and past employees of HDFC Securities. The company had a network of 262 own branches as on September 30, 2017; it also has an effective internet and call centre model.
HDFC Securities offers broking services both in the cash equity and derivative market segments including the currency derivative segment. The retail broking segment accounted for about 97% of total broking income for fiscal 2017. The income from broking activities was Rs 421 crore, and constituted around 76% of the total income for fiscal 2017. It also distributes third-party products, such as mutual funds, insurance, bonds, fixed deposits, initial public offerings, and non-convertible debentures. The company is one of the largest non-bank distributor for HDFC Life. It caters mainly to customers of HDFC Bank and is among the equity brokerage firms with the largest retail client base; it had over 2.0 million customers as on date. HDFC Securities remains a strong player in the cash segment, however its presence in the F&O market segment remains small.
Leading stock broking companies in India, and a subsidiary of HDFC Bank- a renowned private sector bank. As a stock broking company, serving a diverse customer base of retail and institutional investors, since 2000.
April 2000: Inception of HDFC securities. It was a joint venture among HDFC Bank Limited, HDFC Limited and Indocean eSecurities Holdings Limited. Inauguration of the first branch in Mumbai
May 2000: HDFC securities launched its own website
June 2000: Launched stock trading on Bombay Stock Exchange
August 2000: Launched stock trading on National Stock Exchange
November 2000: Introduction of online trading
August 2003: Rolled out online trading in Futures & Options
January 2006: Introduced online IPO/FD system that allowed investors to invest in IPOs and Corporate Fixed Deposits online
March 2008: Pioneered the concept of SIP in equities by launching Do-It-Yourself (DIYSIP) in equities and ETFs
December 2009: Launched BLINK: a trading engine that lets traders place stock orders at lightning fast speed,
November 2010: Launched state of the art website with several advanced features such as unified search option, single sign on, search engine friendly architecture, portfolio tracker and a robust research radar
February 2011: One of the first brokerage houses to launch mobile trading app for equity trading
June 2011: Rolled out Futures & Options on mobile trading platform
December 2011: Launched an exclusive mobile trading app for Android phones and Blackberry
March 2012: Launched an exclusive mobile trading app for iPhone
June 2012: Started offering National Pension System
August 2012: Launched Deep ORS, a sophisticated portfolio tracker that allows investors to trade
from their portfolio itself.
June 2013: Introduced e-filing of Income Tax Return
June 2013: Introduced online mutual fund service that allows customers to invest in mutual fund units through their trading account
July 2013: Took DIYSIP online whereby the investors can invest, track and manage their DIYSIP investments online.
Products and Services Offered:
HDFC securities provides a 3-in-1 Online Investment Account which is a combination of HDFC Bank Savings and Demat Accounts along with an HDFC securities trading account. Services:
Equities – Invest online in stocks of listed companies
Mutual Funds – Invest in mutual funds including equity, hybrid, tax saving or debt schemes from
asset management companies
SIPs – Systematic investment plan that allows automated investments
IPOs - Invest in initial public offerings (IPO)
Derivatives – Hedge or speculate on the price movement of stocks or index through its derivative products viz. Futures and Options
Bonds, NCDs & Corporate FDs – Invest in fixed income instruments such as bonds, NCDs and Corporate FDs
ETFs - Invest in exchange traded funds
Value Added Services - Provides investing and trading ideas, along with financial tools and calculators, tax solutions, will planning and robot advisors.
MCX - Invest in bullion, metals, energy and agricultural commodities
smallcases - Invest in a curated basket of stocks based on a theme or market trend
Indian stock broking industry is expected to clock a healthy growth on an aggregate basis, small-and-mid-sized brokerage companies are expected to face greater operational and funding challenges, which could have a bearing on their performance in terms of growth and profitability.
Low-cost trading, deeper penetration of smartphones, faster internet, and simplification of trading applications will make it possible for an increasing percentage of people across age groups to trade with ease.
India is expected to be the fourth largest private wealth market globally by 2028.
HDFC Securities Ltd is a part of the HDFC Group and enjoys the benefit of its brand name.
Major focus of the company is on customer satisfaction. Since pandemic company's customer connect and conversations have been more tenacious, with the hope of providing investment avenues as a preparedness for Covid-induced uncertainties
HDFC provide Integrated 3-in-1 account sol.(banking, broking, and demat accounts). This makes HDFC extremely convenient trading platform.
In FY 2022, HDFC securities had over 1.2 million transacting customers, featuring in the top 5 of all broking houses in India.
HDFC securities 1 Million+ active customers accessing its services digitally, increased to 92% from 79% in previous year.
As of 31st Mar'22 the company had above 200 branches across147 cities/towns at the end of the year.
In the area of Margin Trade Funding (MTF), the average book size during the year was Rs.2,992 Cr, which is 221% higher than the average book size of Rs. 932 Cr in the last financial year. The book size at the year-end stands at Rs.3,288 Cr.
HDFC Sec have created our basket comprising bluechips called it HRITHIK. It allows customers to invest in thematic investment portfolios at the click of a button.
Source: Company Filing Form AOC-4
Source: Company Filing Form AOC-4
Source: Company Filing Form AOC-4
Revenue of the company is continuously growing, even interest income of the company has seen a growth of 135.1% in FY22. The total revenue grew by 36.2% in FY 22 when compared to FY21. The growth is driven by favorable market conditions as well as market share gains from Domestic institutional investors(DIIs).
The PAT for FY 22 has increased at a good pace because of an increase in revenue by 36.2% which is higher than the increase in total expense and tax expense of 32.1%. This led to an increase of 40% in PAT year on year.
The company has seen a hike in its net profit due to favorable market conditions as well as an increase in operations and customer reach of the company.
Book value of the company is constantly increasing due to continuous rise in profit and retained earnings of the company. While security premium of the company has also increased in FY22 Rs 31.24 cr.
As the company is moving towards digitalization it is increasing its assets every year. In FY22 it has increased its loan deposits as well as deposits in other banks which led to an increase in total assets by 66.4% in F22 in comparison to FY21.
The debt to equity ratio of the company has increased due to the sudden rise in short-term borrowings the company. As the company has raised around Rs. 2,578.71 Cr. by issuing commercial bonds. But it's still lower and better than its peers.
In FY22 company has seen huge rise in its return on equity, they have increased its equity by keeping its profits as reserves and has also provided good amount of dividend to its shareholders.
Sell or Purchase Share (Tentative Price)