BSERikhav Securities LtdMediumNeutral
Announced Thu, 2 Oct · 12:26 IST

Investor Presentation

Investor Communications View source PDF

Price

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AI summary

Rikhav Securities, a BSE SME-listed broking and financial services firm incorporated in 1995, has shared its investor presentation showcasing its integrated platform spanning equity, F&O, commodities, currency, depository, mutual funds and market-making services. FY25 consolidated total income jumped to ₹327.77 Cr from ₹110.60 Cr, but the surge was driven mainly by ₹364.44 Cr in stock-in-trade purchases linked to market-making and proprietary book activity. Core profitability weakened, with EBITDA falling to ₹34.50 Cr (margin: 10.53%) from ₹54.91 Cr, and PAT declining to ₹23.67 Cr from ₹42.20 Cr. The company has 23,000+ clients, 99% client retention, FY25 trading volume of ₹79,079 Cr and serves as market maker for 40–45 SME IPOs annually. Future plans include scaling proprietary trading, expanding MTF, geographic growth beyond Maharashtra and Gujarat, and digital client acquisition.

Likely market impact

The headline revenue growth masks substantial margin compression in core operations, with EBITDA margin falling from ~50% to ~10.5% as income shifted towards lower-margin market-making activity. Investors should view the improved topline cautiously, as profitability ratios (ROE down to 10.40%, ROCE to 14.91%) signal that aggressive expansion plans may continue to weigh on margins in the near term.