IIFL securities

@mohammadarshad27 wrote:

Hi everyone,

This is my first post.
I dont know much about investing. So spare me for the mistakes and please guide me towards the unending learning process.

IIFL securities is demerged recently and after making a high of 30 it corrected sharply.
IIFL securities is in the business of broking and advisory.
Competition: legacy brokers face tough competition from discount brokerages like zerodha, upstox etc.
IIFL surely knows that and they want to grow in advisory and take the share to 70%.
There is not enough data available as of now… They have to still declare there independent results.
I have gone through the data available on moneycontrol

Fairfax is one of the biggest shareholder with 36%. They hold more than the promoters.
Marketcap of the company is 754 crore BUT CASH ON THE BOOK IS 1000 CRORES and is hugely undervalued

ROE is 28.ROCE is 34.

Company requires less amount of capital and can generate free cash flows as there is lot of headroom to grow because of underpenetration in demat account holders and mutual fund.

Kindly guide.

Disc: small position just to track.

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