Top Broking Stocks in India 2022

Broking Stocks in 2022  

Broking industry is one of the few industries that saw massive growth during the Covid-19 pandemic. There was a remarkable growth in the number of Demat accounts opened. On an average, 4 Lakh Demat accounts were opened every month in the financial year 2020. This increased to 29 Lakh Demat accounts by November 2021. And this number is expected to skyrocket with LIC IPO coming soon. 

Even the size of the broking industry has grown from Rs. 135 Billion in FY 2016 to Rs. 195 Billion in FY 2019. This is a growth of 7.69%. The biggest benefactor of this growth are the broking companies

Now you must be wondering, how can I benefit from this growth in the broking sector? The answer is simple… By investing in broking stocks. 

Now please understand something… Zerodha is the market leader in the broking sector when it comes to the number of active clients. It dominates roughly 19.06% of the broking industry in India. But it is not a listed broker. So, you cannot invest in this broking company. 

But there are other listed broking stocks which can help you capitalise on the growth in the broking sector. ICICI Securities Ltd is one such broking stock. Did you know that ICICI Securities Ltd is the biggest broking stock in 2022? Yes, this broking stock has a market capitalisation of Rs 18,799 crore (as on March 7, 2022). The stock has rallied by 43.56% in the last one year. Another popular broking stock is 5Paisa Capital Ltd which has shown a growth of 8.57% in the last one year. 

So, if you choose wisely, you can create ample wealth with broking stocks. In this article, we will take a look at the structure of the broking industry in India. We will also share a list of all the broking stocks in 2022, listed on both the National Stock Exchange & the Bombay Stock Exchange. In the end, we will also share the names of the best broking stocks in 2022 that you should watch out for. 

Top Broking Stocks

In this article, we will cover:

What are Broking Stocks?
List of Broking Stocks in 2022 – NSE & BSE
Top Eight Broking Stocks in 2022 as per Market Capitalisation 
Broking Stock in 2022 #1: ICICI Securities Ltd
Broking Stock in 2022 #2: Motilal Oswal Financial Services Ltd
Broking Stock in 2022 #3: IIFL Securities Ltd.
Broking Stock in 2022 #4: Angel One Ltd (Angel Broking Pvt. Ltd)
Broking Stock in 2022 #5: Edelweiss Financial Services Ltd
Broking Stock in 2022 #6: Share India Securities Ltd
Broking Stock in 2022 #7: Geojit Financial Services Ltd
Broking Stock in 2022 #8: 5Paisa Capital Ltd.

What are Broking Stocks?

Broking companies are engaged in the business of facilitating buying and selling of financial securities. They help retail and institutional investors buy and sell equity shares, currency, commodities and other financial assets. 

Before the digital revolution, majority of Demat accounts were held with full-service brokers. These brokers used to provide research to clients and execute their trades. But the scenario has changed. Today, discount brokers have taken over the broking industry. By offering low-cost-flat fee structure instead of percentage on trading volume, discount brokers have made trading cost-effective for retail investors.  

One such discount broker, who has changed the broking game completely by leveraging technology is Samco Securities. Superior technology is what sets Samco apart from the crowd. We offer unique facilities like StockPlus, CashPlus, Buy Today, Pay after Two Days and much more. We were also awarded as the best stockbroker by CNBC Awaaz.

That’s not all. In addition to broking, Samco has three other verticals, specially curated to help you achieve your varied investment objectives.

Broking Stocks Samco

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  • Have you invested enough in long-term stocks? Want to now make some money via trading? Check out Samco’s KyaTrade – A unique platform that gives you instant intraday trading ideas with a single swipe.

The primary source of revenue for broking companies is the brokerage received from their clients. But with changing times, a major chunk of this revenue is derived from selling products like insurance, mutual funds and loans etc. 

Let us take the example of ICICI Securities Ltd. to understand the changing trends in the broking industry. 

Broking Stocks

*Source: ICICI Securities Ltd Annual Report

The company’s revenue from the mutual fund business grew from Rs 789 million to Rs 2,695 million between 2014 and 2019. This was a growth of 187% on an absolute business. During the same period, the revenue from the retail brokerage business grew by only 76.46% on an absolute basis. With heavy competition from discount brokers, traditional brokers have changed their revenue model, for the good.  

There are a total of 4,812 registered stock brokers in India (SEBI statistic as of March 7, 2022). But a majority of them are not listed on the stock exchange. Of these, only 39 broking stocks are listed on Indian stock exchanges. Here’s a list of all the broking stocks in 2022 listed on NSE and BSE. 

List of Broking Stocks in 2022 – NSE & BSE

Company Name 52-week High 52-week Low Market Cap
(Rs.) (Rs.) (Rs. Cr)
ICICI Securities Ltd 895.60 377.00 19,715.53
Motilal Oswal Financial Services Ltd 580.00 1,188.00 12,312.00
Angel One 1,689.30 282.10 10,604.67
Multi Commodity Exchange of India Ltd 2,134.90 1,165.00 6,361.28
Edelweiss Financial Services Ltd 50.00 100.00 4,909.00
Dhani Services Ltd 326.95 67.10 4,330.63
Share India Securities Ltd 1,372.90 211.50 3,445.91
IIFL Securities Ltd 46.00 128.00 2,376.00
Geojit Financial Services Ltd. 102.65 43.80 1,480.58
Dolat Algotech 128.00 55.00 1,328.80
Dhanvarsha Finvest Ltd 187.50 93.00 1,020.27
5paisa Capital Ltd 577.40 243.75 903.11
Choice International Ltd 249.49 92.93 869.98
Arihant Capital Markets Ltd 413.55 62.00 861.12
Monarch Networth Capital Ltd 191.75 55.70 528.31
Aditya Birla Money Ltd 88.50 38.00 332.61
Prime Securities Ltd 133.25 40.00 307.31
Inventure Gro & Securities Ltd 6.76 2.35 305.76
Almondz Global Securities Ltd 155.20 26.00 263.77
Emkay Global Financial Services Ltd 147.50 59.60 259.83
Toyam Industries Ltd 10.58 1.34 132.38
LKP Securities Ltd 23.24 5.85 112.33
BLB Ltd 32.20 5.54 111.02
DB (International) Stock Brokers Ltd 48.90 7.01 103.95
Indbank Merchant Banking Services Ltd 37.25 11.20 99.85
Inditrade Capital Ltd 54.50 26.15 71.23
Swastika Investmart Ltd 207.95 120.10 48.98
Joindre Capital Services Ltd 38.75 14.10 40.89
B N Rathi Securities Ltd 52.00 15.42 29.27
Khandwala Securities Ltd 33.25 12.25 24.36
Comfort Commotrade Ltd 28.80 5.52 17.73
Vertex Securities Ltd 4.63 0.73 13.40
KBS India Ltd 16.87 3.43 12.75
KJMC Corporate Advisors (India) Ltd 39.40 11.40 10.52
Inani Securities Ltd 32.20 13.55 9.02
Royal India Corporation Ltd 5.49 0.72 8.42
NDA Securities Ltd 54.00 5.25 7.31
Modern Shares Stockbrokers Ltd 22.95 5.00 4.66
Jhaveri Credits & Capital Ltd 7.00 2.58 2.10

Broking Stock in 2022 #8: 5Paisa Capital Ltd.

*Data as on March 8, 2022

Top Eight Broking Stocks in 2022 as per Market Capitalisation 

Broking Stock in 2022 #1: ICICI Securities Ltd 

ICICI Securities Ltd.’s market capitalisation is a whopping Rs. 19,715 crore (as on March 08, 2022). This makes it the biggest broking stock of 2022. The company is a subsidiary of ICICI Bank Ltd, one of the largest private sector banks in India. 

The business of ICICI Securities Ltd is divided into four verticals –  

  • Retail and Institutional Broking 
  • Distribution of financial products 
  • Wealth Management 
  • Investment Banking 

Despite the pandemic, the company has managed to grow its revenue from Rs. 1,721 crore in March 2020 to Rs. 2,586 crore in March 2021. Even its net profit has grown by a whopping 97% from Rs. 542 in March 2020 to Rs. 1,068 crore in March 2021. In 2021, it managed to on-board 1.91 million active clients. This is a 29% increase from its client base in 2020.  

One of the most prominent pros of ICICI Securities Ltd is that it is an asset-light business. Its asset-turnover ratio is 17.28. A high asset-turnover ratio is a great driver of return on equity. This broking stock has managed to generate a ROE of 59% in the last three years. 

Key Financials of ICICI Securities Ltd as on April 12, 2022

Market Cap (Cr): Rs. 20,505  Face Value (₹): 5 EPS (₹): 42.53
Book Value (₹): 63.8 ROCE (%): 37 Debt to Equity: 2.90
Stock P/E: 14.1 ROE (%): 70.5 Dividend Yield (%): 3.37
Revenue (Cr): 3,283 Earnings (Cr): 2,108 Cash (Cr): 4,960
Total Debt (Cr): 5,982 Promoter’s Holdings (%): 75

Broking Stock in 2022 #2: Motilal Oswal Financial Services Ltd

This is a 4.5 star rated broking stock as per Samco stock rating. The company is a market leader and has perfectly blended technology with its 360-degree product basket. It offers services in the retail broking, insurance and mutual fund distribution, portfolio management services, IPOs, bonds, fixed deposits etc. 

The company has the following AUM across its various verticals – 

  • Broking – Rs 11,100 crore
  • Asset Management – Rs 38,600 crore
  • Wealth Management – Rs 20,000 crore
  • Private Equity and Real Estate – Rs 6,500 crore  

Despite the pandemic, Motilal Oswal Financial Services Ltd. managed to generate its highest revenue ever, at Rs 3,626 crore as of March 2021. This is an increase of 54% compared to the previous year. The company’s net profit also increased by 580% in the last one year from Rs 183 crore in March 2020 to Rs 1,245 crore in March 2021. The company has also created a ROE of 18% in the last three years. 

Key Financials of Motilal Oswal Financial Services Ltd as on April 12, 2022

Market Cap (Cr): Rs 13,352  Face Value (₹): 1 EPS (₹): 98.31
Book Value (₹): 347 ROCE (%): 22.1 Debt to Equity: 0.94
Stock P/E: 8.53 ROE (%): 35 Dividend Yield (%): 1.09
Revenue (Cr): 4,388 Earnings (Cr): 2,293 Cash (Cr): 4,671
Total Debt (Cr): 4,858 Promoter’s Holdings (%): 70.49

Broking Stock in 2022 #3: IIFL Securities Ltd

This next broking stock comes from the affluent IIFL Group. They provide retail and institutional advisory and execution in the following domains – 

  • Equities 
  • Financial Products Distribution 
  • Commodity & Currency broking 
  • Investment Banking 
  • Financial Planning
  • Wealth Management  

IIFL Securities Ltd. had a good 2021. They managed to increase their revenue from Rs 758 crore to Rs 841 crores between March 2020 and 2021. But they did see a dip of 6% in their net profit numbers. The company has managed to generate a ROE of 26% in the last three years. 

Key Financials of IIFL Securities Ltd as on April 12, 2022

Market Cap (Cr): Rs 3,097  Face Value (₹): 2 EPS (₹): 10
Book Value (₹): 36.5 ROCE (%): 25.3 Debt to Equity: 0.18
Stock P/E: 7.81 ROE (%): 23.8 Dividend Yield (%): 2.94
Revenue (Cr): 1,124 Earnings (Cr): 456 Cash (Cr): 3,313
Total Debt (Cr): 198 Promoter’s Holdings (%): 29.74

Broking Stock in 2022 #4: Angel One Ltd (Angel Broking Pvt. Ltd) 

Angel Broking Private Ltd is the second biggest broking stock in 2022 with a market capitalisation of Rs. 10,604 crore. It is also the second largest broker in terms of active client base. It is also one of the few traditional brokers who have managed to adapt to the changing times without hurting its revenue. 

Angel One Ltd dominates roughly 10% of the broking industry in India. The company prides itself on its active client base. Their active client base percentage is 38%, which is higher than the industrial average of 34.30%. Its market share in the broking sector has grown by a mammoth 94% in the last two years. 

The company is a market leader in the following domains – 

  • Retail and Institutional broking 
  • Research reports and recommendations 
  • Investment advisory 
  • Margin trading facility, loan against shares 
  • Distribution of banking, financial and insurance products 

The company’s total revenues have grown consistently in the last five years. It went from Rs. 440 crore in 2017 to Rs. 1,289 crore in 2021. In the last one year, its net profit has increased by 262%! The company has managed to deliver a ROE of 24% in the last three years. 

Key Financials of Angel One Ltd as on April 12, 2022

Market Cap (Cr): Rs. 14,123  Face Value (₹): 10 EPS (₹): 63.3
Book Value (₹): 157 ROCE (%): 26.8 Debt to Equity: 0.92
Stock P/E: 20.1 ROE (%): 34.6 Dividend Yield (%): 1.42
Revenue (Cr): 1,996 Earnings (Cr): 743 Cash (Cr): 4,570
Total Debt (Cr): 1,206 Promoter’s Holdings (%): 44.56

Broking Stock in 2022 #5: Edelweiss Financial Services Ltd

This is another popular broking stock. They provide investment advisory, financial planning, currency trading, trading in derivatives and equity segments, mutual funds, gold ETFs etc. It is the second largest company in the wealth management space.

The company managed to post a revenue of Rs 10,775 crore as of March 2021. This was a 13% increase from the previous year. The company did manage to post a net profit of Rs 265 crore. Now this is much better than the loss of Rs 2,045 crore it posted in March 2020. 

Key Financials of Edelweiss Financial Services Ltd as on April 12, 2022

Market Cap (Cr): Rs 5,791  Face Value (₹): 1 EPS (₹): 8.27
Book Value (₹): 70.2 ROCE (%): 10.2 Debt to Equity: 3.89
Stock P/E: 6.33 ROE (%): 4.18 Dividend Yield (%): 2.33
Revenue (Cr): 8,115 Earnings (Cr): 2,289 Cash (Cr): 2,484
Total Debt (Cr): 25,722 Promoter’s Holdings (%): 32.91

Broking Stock in 2022 #6: Share India Securities Ltd  

Our next top broking stock of 2022 is Share India Securities Ltd. The company has five main verticals – 

  • Broking and Depositories – Equity and Derivatives, currency, commodity etc. 
  • Merchant Banking – IPO valuation, advisory and mergers and acquisitions. 
  • Mutual Funds and Debt Products – Mutual Fund schemes, NPS, Capital gains bonds etc. 
  • Insurance – General and Life Insurance 
  • Non-Banking Financial Services – Loan against shares, small and micro loans, personal loans etc. 

The company has managed to double its revenue from Rs 228 crore in March 2020 to Rs 453 crore in March 2021. Its net profit also increased by 97.56% from Rs 41 crore to Rs 81 crore between March 2020 and 2021. The company has managed to deliver a ROE of 28% in the last three years, which is one of the best among other listed broking stocks. 

Key Financials of Share India Securities Ltd as on April 12, 2022

Market Cap (Cr): Rs. 4,382  Face Value (₹): 10 EPS (₹): 50.7
Book Value (₹): 108 ROCE (%): 35.8 Debt to Equity: 0.37
Stock P/E: 19.8 ROE (%): 34.1 Dividend Yield (%): 0.29
Revenue (Cr): 755 Earnings (Cr): 244 Cash (Cr): 534
Total Debt (Cr): 130 Promoter’s Holdings (%): 55.87

Broking Stock in 2022 #7: Geojit Financial Services Ltd   

Geojit Financial Services is one of the leading listed broking stocks in India. Its AUM under the wealth management division has grown from Rs. 5,200 crore in financial year 2020 to Rs. 8,465 crore in 2021. Like its peers, Geojit Financial Services Ltd is present in investment advisory, broking, financial services distribution and wealth management domains. 

There is a 39.21% growth in the company’s revenue between 2020 and 2021. The company’s net profit has nearly tripled from Rs. 47 crores in 2020 to Rs. 124 crores. It has also managed to generate a high ROE of 12% in the last three years. 

Key Financials of Geojit Financial Services Ltd as on April 12, 2022

Market Cap (Cr): Rs. 1,667  Face Value (₹): 1 EPS (₹): 6.38
Book Value (₹): 26 ROCE (%): 29 Debt to Equity: 0.16
Stock P/E: 9.62 ROE (%): 22.4 Dividend Yield (%): 5.06
Revenue (Cr): 499 Earnings (Cr): 231 Cash (Cr): 855
Total Debt (Cr): 95 Promoter’s Holdings (%): 62.22

Broking Stock in 2022 #8: 5Paisa Capital Ltd.

5Paisa Capital Ltd. is one of India’s fastest growing technology-driven brokers. It was established in the year 2007 and its promoter is Mr. Nirmal Jain, who is also the promoter of IIFL group. The company is highly popular in the following areas –

  • Online discounted stock broking
  • Depository services
  • Research and distribution of financial products
  • Peer-to-Peer lending
  • Mutual Fund Advisory and Distribution
  • Insurance
  • Commodities Trading

This broking stock has shown strong revenue growth in the year 2020-21. Its revenue jumped by 80% from Rs 108 crore in 2020 to Rs 195 crore in 2021. It also managed to post a net profit in 2021 of Rs 15 crore, which was a relief post a loss of Rs 8 crore in 2020. This broking stock has achieved a compounded profit growth rate of 37% in the last three years.

Key Financials of 5Paisa Capital Ltd. as on April 12, 2022

Market Cap (Cr): Rs 1,097 Face Value (₹): 10 EPS (₹): 5.47
Book Value (₹): 125 ROCE (%): 10.8 Debt to Equity: 0.87
Stock P/E: 72.2 ROE (%): 9.98 Dividend Yield (%): 0

This completes our discussion on the top broking stocks in 2022. Now, there is no doubt that broking is a lucrative business. But the coming decade will be a testing time for all of these broking stocks. With high-speed-low-cost technology eating into their profit margins, broking companies will have to up the ante or else fintech companies will win this battle. What do you think of these broking stocks? Do comment and tell us of your views. In the meanwhile, here is our playlist on some of the best investment ideas, especially for you. Open a Demat account with Samco Securities – India’s best stock broker and enjoy lowest brokerage in India. 

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