Geojit Financial Services

Geojit Financial Services reported a strong growth in consolidated revenue of Rs. 91 cr for the quarter ended June, 2020. The company reported EBITDA of Rs. 39.90 cr up 24.2% Q-o-Q with EBITDA margins of 43.80% in Q1 FY21. EBITDA improved significantly mainly on account of increase in equity related sales which grew 23.1% Q-o-Q. The company reported PAT of Rs. 24.57 cr up 24.70% Q-o-Q basis from Rs. 19.70 cr reported in Q4 FY20.

Even though traditional broking faces headwinds with new customer acquisition lagging behind its competition Geojit Financial Services still remains a beneficiary given its largest proportion of cash business. With the surge in brokerage activity given the current environment outlook, Geojit Financial Services trades at lower valuations to its peers at 14.2x TTM earnings.