Lkp Securities Limited · BSE:LKPSEC
Lkp Securities — LKP Finance — Investor Presentation (July 2011)
21 slides from Lkp Securities's investor presentation, July 2011
Slide 1: LKP Corporate Presentation
LKP Corporate Presentation July 2011
Slide 2: The Organization
The Organization
Slide 3: Overview
Overview Consolidated Revenues (Rs. Mn.) • LKP Finance (NBFC) is registered with RBI and listed on BSE. • Established in 1948. The company went public in 1986. 1,400 • Key businesses include Equity broking and Distribution, Fixed Income, Merchant Banking and Treasury. 1,009 854 • Large client base o
Slide 4: A strong balance sheet
A strong balance sheet INR Mn. FY08* FY09* FY10* FY11* Net Worth 605 1255 1428 1576 Loan funds 75 589 347 970 Net Deferred Tax Liability 4 (26) (59) (57) Total Sources of Funds 684 1818 1717 2490 Fixed Assets 198 173 165 155 Investments 77 526 526 189 Net Current Assets 130 244 446 1275 Cash & Bank
Slide 5: Profitable
Profitable INR Mn. FY08* FY09* FY10* FY11* Revenues 694 1400 854 1009 Total Expenditure 547 454 508 591 Operating Profit 147 946 346 417 Depreciation 34 32 25 21 Interest Cost 127 52 84 66 Extra ordinary items 573 - - - Profit Before Tax 559 863 238 331 Tax 90 76 3 68 Profit After Tax 470 787 234 26
Slide 6: Group structure
Group structure Shareholding Pattern* Promoter Group – 54.46% Public – 45.54% BOD Mahendra Doshi - Chairman Sayanta Basu LKP Finance Limited Pratik Doshi (NBFC) Milan Bhise Vineet Suchanti Hariharan Padmanabhan 99.8% LKP Securities Limited Institutional Equities Broking & Distribution Fixed Income I
Slide 7: Board of Directors
Board of Directors • Experienced Board of Directors with diverse areas of expertise Hariharan Mahendra Doshi Sayanta Basu Pratik Doshi Milan Bhise Vineet Suchanti Padmanabhan Executive Chairman Director Director Independent Director Independent Director Independent Director 32 years of 14 years of 1
Slide 8: Current management team
Current management team • Most of the team has been together for the last 18-20 years, with some new key additions Board Sub Committee Mahendra Doshi, Sayanta Basu , Pratik Doshi Retail & Distribution Anand Agarwal & Deepak Singh CFO & Business Strategy Anish Unadkat Institutional Equities Pratik Do
Slide 9: Business Snapshot
Business Snapshot
Slide 10: The opportunity
The opportunity • Total brokerage market: 12,000 crs per annum growing at 20% per annum with the natural tailwinds of GDP and greater domestic and foreign participation. 800 brokers and 62,000 sub-brokers. Capital key to success with regulators making life difficult for weaker players. Retail pool 3
Slide 11: Equities: The business today
Equities: The business today Retail and Institutional Daily Turnover (Rs. Mn.) • LKP Finance (NBFC) is registered with RBI and listed on 2,571 BSE. • LKP Securities is registered Stock Broker with SEBI. 1,485 1,512 • Key businesses include Equity Broking and Distribution, Fixed Income, Merchant Bank
Slide 12: Retail Distribution
Retail Distribution • Pan India footprint with 540 branches/outlets in 147 cities • Strong network to facilitate reach • Large customer base of 70,200 clients • Strong network of 504 Sub-brokers No of Retail Clients 67,500 70,200 48,217 39,745 2008 2009 2010 2011 Branches/Outlets 540 385 450 285 200
Slide 13: Retail Distribution … other products
Retail Distribution … other products Mutual Fund Distribution Portfolio Management Services • AUM worth ~Rs.1155 cr. with Rs.155cr in Equity and • In-house team of fundamental and technical research Rs.900cr in Debt analysts • Supported by a team of 23 personnel . • Supported by a host of financial
Slide 14: Institutional Equities
Institutional Equities • Established in 1948, taken over by Mr. Mahendra Doshi in 1982 • Long track record • Strong risk management culture, managed 2008 downside with minimal losses. Minimal proprietary trading activities • Presence in 400+ locations, 75,000 retail and high networth clients giving
Slide 15: Research focus areas
Research focus areas 38 companies covered: Large Cap: 23, Mid Cap: 39, Small Cap: 28 • Strong performance of model portfolio • Fundamental Research • Pharma, Agriculture, Automobiles, Telecom, Infra, Capital Goods, Engineering, FMCG, Retail, Industrials, Fertilizers, Cement, Sugar, Oil & Gas, Shippi
Slide 16: Fundamental Research Performance
Fundamental Research Performance Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Buy Calls: 10 Buy Calls: 15 Buy Calls: 23 Buy Calls: 5 Hold Calls: 3 Hold Calls: 2 Hold Calls: 5 Hold Calls: 3 Sell Calls: 0 Sell Calls: 0 Sell Calls: 2 Sell Calls: 1 Buys recommended: Buys recommended: Buys recommended: Buys recommend
Slide 17: Fixed Income: Business today
Fixed Income: Business today • Member of NSE and BSE WDM segment • Empanelled with major banks, insurance companies, mutual funds, Corporates and domestic institutions • Network – Hotline with treasuries of all major banks, mutual funds and primary dealers • Ranked in the top 3 WDM brokers in India.
Slide 18: Fixed Income: Deals and Placements
Fixed Income: Deals and Placements Primary Market Debt Raised (Rs. Bn) • Ranked No.2 Arranger for CP & Short Term Debts and Prime League Table • Placed Fertiliser bonds worth Rs.55 bn. for various 418 317 346 Fertiliser companies in FY09. 152 • Primary placement of CPs, NCDs and CD’s of ~Rs.480 bn &
Slide 19: Fixed Income: Relationships with Institutions & Corporates
Fixed Income: Relationships with Institutions & Corporates • We have strong relationships with over 475 Institutions & Corporates. LKP has successfully executed deals for the above Clients 19
Slide 20: Merchant Banking
Merchant Banking Overview • Presence in the Primary market – involved in marketing activities for IPOs. • Network – Dedicated network of sub-brokers catering to primary market activities • SEBI registered category 1 Merchant Banker – Capability to carry out all regulated investment banking activitie
Slide 21: Disclaimer
Disclaimer LKP Finance Limited (the Company) has prepared the information contained in this Presentation. While the information contained in the Presentation has been prepared in good faith, each party to whom this Presentation is made available must make its own independent assessment of the Compan