LKP Securities Ltd. (BSE:540192 FV : Rs 2.00) CMP 10.60

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by KK Shah, May 11, 2017.

  1. KK Shah

    KK Shah Member

    Sep 23, 2016
    Likes Received:
    LKP Securities Ltd. (BSE:540192 FV : Rs 2.00) CMP 10.60

    LKP Securities Ltd, demerged from LKP Finance from December 2016, has been one of the oldest and reputed stock broking of the country since 1948 is today one of the largest multi dimensional financial services group and India’s first to be awarded the prestigious ISO9002 certified KPMG Quality Registrar, USA. Since 1948, LKP with its 3772+ outlets across India covering 200 cities in the country, including 25 regional offices at all the major cities, Continues to provide clients with a single source capable of meeting all their needs – be it Equities, Debt, Corporate Finance, Investment Banking, Merchant Banking, Wealth Management or Commodities.

    LKP Securities Limited and its associates enjoy the following Registrations & Memberships :

    Category I Merchant Bankers with SEBI, Membership of BSE & NSE (Capital & Debt Market), AMFI registered all India Mutual Fund Distributors, Member of Commodity Exchanges MCX, NCDX and DGCX (Dubai), Member of NSE for Interest Rate Futures, Member of MCX SX and NSE Currency.

    The business verticals are as :

    Equities :

    Retail : LKP offers a wide spectrum of services that includes Equity Broking in Cash and Derivatives, Internet based trading, Demat services & Research services

    Institutional : Clientele at the institutional desk include Mutual Funds, Financial Institutions, Foreign and Domestic Institutional investors, Insurance companies, Banks and Corporates. Some of our esteemed domestic clients include among others – UTI MF, Birla MF, LIC, HDFC MF, Pru ICICI MF, Reliance MF, Principal MF, Sundaram MF, Tata MF, Benchmark MF, ILFS, Canara Robecco MF, ABN Amro MF and FII clients include Morgan Stanley, JP Morgan, Matterhorn and Blackstone among others. Clients whom we have been serving for the past twenty-five years include UTI, LIC, IDBI, ICICI, Tata Group, Birla Group, and Dabur, Jain Irrigation, Emco, Godrej, JB Chemicals, Paper Products and UB Group of Companies among others.

    Fixed Income Markets : LKP is recognized as major dealer of Fixed Income Securities, executing deals for Banks, Institutions, FIIs, MFs, Insurance companies, Primary Dealers, large Corporates, PSUs & PF Trusts.

    Primary Market Division : LKP’s vibrant 'Primary Market' Division does syndication business in IPOs', Company Fixed Deposits, Capital Gain Bonds (U/s 54EC), 8.00% Saving (Taxable) Bonds floated by RBI & various bonds floated by Central & State Governments.

    Mutual Funds & Insurance Advisory : LKP Investment Advisory Services Offer tailor-made wealth management services to Retail, High Networth Individual and Corporate Clients.

    Commodities : Alpha Commodities offers a complete bouquet of client- friendly services in the burgeoning Commodity Futures market.

    Currency Derivatives : With the launch of currency derivatives, LKP offers its clients yet another segment for trading. Jointly regulated by SEBI and RBI provides traders with another lucrative trading avenue.

    Valuations : A 70 year old closely held company with nationwide retail client base along with marquee institutional & corporate clientele is trading at a market cap of ~80 odd crore. Company reported total income for March Quarter of Rs 16.68 Cr and Net Profit of 3.32 Cr giving an EPS of 0.45 per share. Expected FY 18 EPS is Rs 1 per share. The stock is trading at just 11 times FY 18 , while the industry PE for brokerage companies is above 20 making it a good investment candidate for long term growth, as new generation has taken over the company with new team in place to drive its overall business to create shareholder value after demerging the company from LKP Finance Ltd.