Buy 5Paisa Capital, target Rs 450: ICICI Direct

ICICI Direct has buy call on 5Paisa Capital with a target price of Rs 450 for a duration of 12 months. The current market price of 5Paisa Capital is Rs 356.

5Paisa Capital Ltd, incorporated in the year 2007, is a Small Cap company with a market cap of Rs 911.43 Crore, operating in Financial Services sector.

5Paisa Capital's key Products/Revenue Segments include Fees & Commission Income and Interest for the year ending 31-Mar-2020.

Investment Rationale
Customer addition during the quarter was healthy at 8.1 per cent QoQ, 74 per cent YoY as 5Paisa added 2.06 lakh clients. With this, total customer base has risen to 13.5 lakh from 11.5 lakh a quarter ago. Also, 65 per cent of total clients are active, slightly lower than 69 per cent in previous quarter. For 5Paisa, 83 per cent of customers are from tier-II, tier-III cites and 84 per cent are first time investors. Continued focus on technology, marketing is seen keeping client acquisition healthy ahead, according to ICICI Direct.

Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 49.90 Crore, up 0.57 per cent from last quarter's Total Income of Rs 49.61 Crore and up 40.91 per cent from last year same quarter's Total Income of Rs 35.41 Crore. Company has reported net profit after tax of Rs 5.86 Crore in Dec quarter.