SMC Global Securities Limited - Investor Presentation
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SMC Global Securities Limited
Investor Presentation
Information in this presentation is as on December 31, 2020 except specified otherwise
1
Disclaimer
● This presentation and its contents are confidential and should not be distributed, published or reproduced, in whole or part, or disclosed by recipients directly or
indirectly to any other person. Any failure to comply with these restrictions may constitute a violation of applicable laws. Accordingly, any persons in possession of
this presentation should inform themselves about and observe any such restrictions.
● This presentation may include statements which may constitute forward-looking statements. All statements that address expectations or projections about the
future, including, but not limited to, statements about the strategy for growth, business development, market position, expenditures, and financial results, are
forward looking statements. Forward looking statements are based on certain assumptions and expectations of future events. This presentation should not be
relied upon as a recommendation or forecast by SMC Global Securities Limited or its subsidiaries (“Company"). Please note that the past performance of the
Company is not, and should not be considered as, indicative of future results. The Company cannot guarantee that these assumptions and expectations are
accurate or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking
statements. The Company does not undertake to revise any forward-looking statement that may be made from time to time by or on behalf of the Company.
Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements.
● The information contained in these materials has not been independently verified. None of the Company, its Directors, Promoter or affiliates, nor any of its or their
respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or
otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly
or indirectly, from any use of this document or its contents or otherwise in connection with this document, and makes no representation or warranty, express or
implied, for the contents of this document including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made
by any of them, or on behalf of them, and nothing in this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or
the future. The information and opinions contained in this presentation are current, and if not stated otherwise, as of the date of this presentation. The Company
undertake no obligation to update or revise any information or the opinions expressed in this presentation as a result of new information, future events or
otherwise. Any opinions or information expressed in this presentation are subject to change without notice.
● This presentation does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe
for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or
commitment therefore. No person is authorized to give any information or to make any representation not contained in or inconsistent with this presentation and
if given or made, such information or representation must not be relied upon as having been authorized by any person. By participating in this presentation or by
accepting any copy of the slides presented, you agree to be bound by the foregoing limitations.
● Certain information in this presentation, in particular the pro forma financial statements are based upon unaudited management accounts. Unless otherwise
indicated, all references in this presentation to “₹”, “Rs.” are to “Indian Rupee”, the lawful currency of India.
2SMC Group : Snapshot
● Established in 1994, by Mr. Subhash C. Aggarwal & Mr. Mahesh C Gupta, SMC is one of the leading Investment
Solutions Companies in India with over 25 years of successful operation, serving a diverse customer base of
Retail, Corporate and Institutional Investors through a wide network.
● Having Clearing & Trading memberships of all major stock exchanges in India in equity, commodity, currency
segments as well as membership of DGCX (Dubai) and in IFSC (Gift City).
Branches across India 500,000+ Client A/Cs in NSDL & CDSL (as DP)
95
(including one overseas branch at Dubai)
` 30+ Bn Cumulative AUM/ AUA under mutual funds/ PMS
550+ Cities covered across India
7,15,000+ Insurance policies sold in FY20
2,500+ Network of sub-brokers and authorized persons
10,590+ Point of Sale (PoS) outlets for insurance distribution
13,700+ Network of independent distributors
` 11,038 Mn Insurance premium sourced in 9 month in FY-21
1,800,000+ Unique clients served
NBFC loans assets under management (AUM) ,
` 6,438 Mn having 37,500+ active borrowers
3,450+ Employees (occupying office space of ~200,000 sq ft)
Business Development Representatives (BDR) for Rating Short term : CARE A1+ and ICRA A1+ (highest notch)
1,120 + Long Term : ICRA A (Stable)
StoxKart A1+ / A
3SMC : Experienced Board & Management Team
Name Designation Experience
Chairman, MD He has over three decades of diverse experience in financial, stock
Mr. Subhash Chand Aggarwal, FCA Senior member of management committee of ASSOCHAM broking industry in India and abroad
Mr. Mahesh C Gupta, FCA Vice Chairman, MD He has around three decades of acclaimed exposure and experience in
Capital Markets
Dr. D. K. Aggarwal, FCA CMD – SMC Investments & Advisors, SMC Capitals He has more than 27 years of versatile experience in Equity, Capital,
President of the PHD Chamber of Commerce & Industry Commodity, Debt, Forex, Real estate & Fund management
Mr. Ajay Garg, FCA Director & CEO (Awarded – The Most Promising Business Leader He has more than 20 years of rich experience in Capital Markets
of ASIA 2019 by The Economic Times)
Mr. Himanshu Gupta, FCA Director & CEO – Moneywise Financial Services He has around 10 years of industry experience
Mr. Anurag Bansal, FCA Whole-Time Director He has more than 20 years of experience in Capital Markets
Mr. Pravin K. Agarwal Whole-Time Director – SMC Insurance Brokers He has more than 10 years of experience in Insurance and Financial
Industry
Ms. Reema Garg Director – SMC Investments & Advisors, Moneywise Finvest, She has more than 12 years of industry experience
CHRO
Mr. Pranay Aggarwal, ACA Whole-Time Director – Moneywise Finvest He has around 5 years of industry experience
Ms. Anshika Aggarwal, ACA Whole-Time Director – SMC Investments & Advisors She has around 3 years of industry experience
Mr. Ayush Aggarwal, PGP -FMB Director – SMC Real Estate Advisors He has around 5 years of industry experience
Ms. Akanksha Gupta , ACA Whole-Time Director – SMC Insurance Brokers She has around 7 years of industry experience
Ms. Shruti Aggarwal, ACA , MBA Director She has around 10 years of industry experience
Mr. Vinod Kumar Jamar, FCA Group CFO He has over 34 years of professional experience in Taxation, Finance,
Account, Strategic planning, Auditing & Fund management
Mr. Suman Kumar, FCS Executive Vice President (Corporate Affairs), CS He has more than 18 years of refined experience of industry
Mr. Hari D. Khunteta Mr. Naveen ND Gupta Mr. Chandra Wadhwa
Former MD & Finance Director of REC Ex. President, ICAI ; Fellow Member, Ex. President, Institute of Cost
Independent Accountants of India;
Ltd. ; Fellow Member, ICAI ICAI
Directors Fellow Member, ICAI & ICSI
Dr. Madhu Vij Mr. Kundan M. Agarwal Mr. Roop C. Jindal
Professor, FMS, DU; Govt. nominee Fellow Member, ICAI; Fellow Member, ICAI;
Central Counsel member of ICSI, Senior Chartered Accountant, having Senior Chartered Accountant, having
Author exp. of over 40 years exp. of over 40 years
4SMC Group Evolution
2005 2016
1995 2007 2010 Trading cum
Distribution of 2018
SMC Global took NRI Business Corporate clearing member
Financial Products SMC Gold Desk
membership of Hedging Desk of BSE’s India INX
Research Services Institutional Desk
NSE and started & NSE’s NSE-IFSC,
broking business Membership of GIFT IFSC,
DGCX in Dubai Gujarat
2003 2014 2017
2006 2008
Commodity Real Estate Point of Sale 2019
Broking Insurance Wealth Management Advisory
Broking Persons (POS) – Discount Broking -
launched Investment Banking Fixed Income Approved by StoXkart
Online Trading Broking IRDAI
Currency Broking Mortgage and
Loan Advisory
Financing Business (NBFC)
5Economic & Industry Tailwinds
● India has huge economic tailwinds – backed by strong demographic dividend
● India saw V shape recovery seen post COVID , IMF also projects impressive GDP growth of 11.5% for India in 2021
● BFSI is the force multiplier and poised for growth with economic trends
● Industry trends and views
Capital markets
• Low Penetration - Stock market penetration in India is sill @SMC Group Structure : Key Segments
SMC Global Securities Limited*
(Equities, Currency & Commodity Broking, Prop Trading, Clearing Services, Fixed Income
Securities, Distribution of financial products, Depository Participant, PMS)
Broking & Prop. Trading Financing Advisory
SMC Capitals Limited
Moneywise
MoneywiseFinancial
Financial (Category I Merchant Banker)
Services
ServicesPrivate
PrivateLimited
Limited
Moneywise Finvest
SMC Comex (NBFC)
(NBFC)
Limited
International DMCC SMC Investments &
(Discount Broking under
(Commodity Broking, Advisors Limited
brand name )
(Loan advisory, Corporate
Trading & Arbitrage at funding & debt syndication)
Dubai)
SMC Global IFSC Limited SMC Real Estate Advisors
(Trading cum clearing member Private Limited
of exchanges in GIFT city) SMC Comtrade Limited (Real Estate Advisory Services)
(Bullion trading)
Other Entities
SMC Global USA Inc.
SMC & IM Capitals Investment
Manager LLP (50%)
SMC Insurance Brokers ( Joint venture of SMC
Private Limited Investments & Advisors Limited)
(Insurance Broker)
• SMC Global Securities Limited holds 100 % shareholding of all companies except SMC Insurance Brokers Private Limited (97.58 %) and as specified in Other Entities
• Promoters holding 62.3% in SMC Global Securities Limited. 7SMC Broking Business
Equity Broking Commodity Broking Currency Broking
• Trading cum Clearing Member of NSE, BSE in • Trading cum Clearing Member of MCX, • Trading Cum Clearing Member of NSE, BSE &
equities (cash and F & O) & India INX & NSE NCDEX, ICEX, NSE, BSE and DGCX (Dubai MSEI (Currency Segment)
IFSC Exchange at GIFT City Gold & Commodity Exchange) • ₹ 19.9tn trading volume achieved in FY20,
• Depository Participant of CDSL & NSDL • Repository Participant of Comtrack & NERL • Addressing corporate needs through
• ₹ 109.5tn trading volume achieved in FY20, • ₹ 1.9tn trading volume achieved in FY20, dedicated hedging desk
• Specialized desk for NRI, FPI & Institutions • with ~2.5 market share • with ~7.2% market share
• with ~2.4% market share
In ‘000 In ‘000 In ‘000
No. of clients
551 91
511 118
79
471 105
432 71 94
68
391 65 85
77
FY 17 FY 18 FY 19 FY 20 FY 21 (9M) FY 17 FY 18 FY 19 FY 20 FY 21 (9M) FY 17 FY 18 FY 19 FY 20 FY 21 (9M)
600,000+ 1,500+ ~40% 300+ 8
Unique Customer base Dedicated employees Online Customers Trading MembersSMC Broking Business
Robust Technological Platforms Discount Broking
• Next generation
advance mobile
• Successfully launched a Discount
trading platform ‘ SMC broking platform in 2019 under
ACE’ • Online trading through • Online KYC platform, a brand name STOXKART.
• Having feature of SMC www.smctradeonline.co complete paperless &
Robo Advisory m and Mobile App hassle free process • It’s a first-of-its-kind in the broking
industry where customers are
charged only for profitable
transactions.
• An In house
automated software • Optimal usage of existing
• Discount Broking
which is totally Software infrastructure leading to great cost
unique and • Online App for mutual
funds Investments, • API based trading savings
developed by our
research team. FDs • Offer API based trading
• Great growth potential
Quantitative Trading
Desk(HFT) Key figures:
• Customized automated
trading platform, based No of Accounts : +35,000 – fast
on Algorithms. • A B2B mobile back • Specialize in automated growing
office trading strategies across
multiple asset class No. of Partners : +1,120 , great
through cutting edge in- results expected in future
house trading platform
9SMC Insurance Broking & 3rd Party Distribution
SMC Insurance Brokers Pvt. Ltd. (SMC Insurance) Distribution of MFs & Other Products
• SIBL is a Direct Insurance Broker registered with IRDAI
• One of the leading distributor of 3rd party products such as
• One of India’s leading retail insurance brokers
• Developed B2B website (www.smcinsurance.com) for mutual funds, IPO/FPO of equity/debt securities, corporate
business solicitation by POS. B2C coming soon.
fixed deposits, PMS, government bonds etc.
40 IRDAI registered branches • Pan-India network of ~2,500+ sub-brokers & 13,700+
950+ Employee strength independent distributors
~40% CAGR growth in Revenue in the last 5 years • Ranked amongst top 10 syndicator in most of the Debt &
Equity Issuances in retail segments
370+ Active No. of MISP
• ` 29,780+ Mn of mutual fund AUM & 58,890+ Running SIPs
10,590+ Active No. of POS
• Procurement in FD, MF, CGB, & G-Sec done at ` 50,330 Mn.
Substantial Penetration in Honda & KIA dealerships (new
81%
cars)
(9M-FY21)
Renewal persistency in Honda & KIA – much above
72%
industry average
Particulars (₹ Mn) FY18 FY19 FY20 FY 21
(9m)
Gross Premium 13,628 13,716 15,827 11,038
10SMC Finance : NBFC
Key Highlights Diversified product suite ` 6,438 mn.
• MFSPL is registered with the RBI as a NBFC-ND-SI
• Technologically enabled operating model with investment in SME - WCTL
32%
proprietary Loan Origination Eco-system (LOS)
SME -AS
6%
SME - LAP
` 6,438 Mn. AUM - with CAGR growth @ 26% since Mar-17
22%
37500+ Active Borrowers
CD
5%
CRAR with very comfortable ALM position, poised to CMF 18%
53.3% Onward
benefit from financial leverage
lending
2.06% - GNPA 16%
Robust Portfolio Quality
1.27% - NNPA
No. of Banks & FI Lenders – growing & diversified Amount in Mn.
10
borrowing profile
SME – SME – SME - Onward Total
Rating CMF CD
CARE A (stable) and ICRA A- (Positive) LAP WCTL Assets lending AUM
A / A-
1,395 2,091 400 1,069 1,134 349 6,438
MFSPL – Moneywise Financial Services Pvt. Ltd. 11SMC Advisory Services
• Wealth management business complements trading & distribution
• Total Clients served are 10,260+ with Manage AUM of ~ ₹ 4,325 Mn
Wealth Management • Direct sales branches/ regional offices at Delhi, Mumbai, Bangalore and Pune
• Tie-ups with leading banks for debt syndication of secured / unsecured loans for retail and corporate
borrowers
• Fully Integrated real-estate solution provider for end-users, investors & developers
• Team of 180+ specialist employees supported by 1,100+ sub-brokers
Real Estate Advisory
• 4,100+ transaction done since 2017 valued at ₹ 20,080 Mn
• Tie-ups with leading developers like Godrej, Lodha, Shapoorji, TATA, Shobha, Hiranandani, Adani, etc.
• SMC Capitals Ltd. Is a Category I Merchant Banker, SEBI registered
• 14 IM specialist with avg. 10 years of experience and over 50 deals concluded including IPOs, debt
Investment Banking
issuances and other equity based transactions
• Services include Capital Market Services, Corporate Finance, Corporate Advisory
12SMC Group : Consolidated Financials
FY 20 FY 21
Particulars (₹ Mn) FY16 FY17 FY18 FY19 FY20
(9M) (9M)
Total Revenue 4,266 5,339 6,554 7,595 7,841 5,836 6,385
Revenue Growth 13% 25% 23% 16% 3% - 9% • Consistent Dividend since 2014
EBIDTA 738 1,043 1,341 1,651 1,243 969 1,369
EBIDTA Margin 17% 20% 20% 22% 16% 17% 21% • Interim dividend @ 60 % for CY
Profit after Tax 346 451 517 748 239 184 677
PAT Margin 8% 9% 8% 10% 3% 3% 11% • 5 Yr. CAGR in Revenue- 15 %
• 5 Yr. CAGR in PAT - 21 %
Net Worth 5,662 5,948 6,172 6,810 6,814 6,906 7,479
Total Debt 1,816 3,307 5,144 7,398 1,847 3,192 2,355 • Operating leverage results into
ROCE% 9.13% 10.65% 11.48% 11.19% 12.72% 11.39% 17.49%
faster growth in PAT
Revenue in ₹ Mn
Key Performance - FY-21 (9 months)
7595 7841
6554 6,385
5339
4266
9% 268%
FY 16 FY 17 FY 18 FY 19 FY 20 FY21
Revenue PAT
9M
Revenue 13Peer Analysis
Revenue (TTM) PAT (TTM) Market Price * EPS Book Value P/E
P/BV
INR In Mn INR in Mn (INR) (TTM) (INR) (TTM)
Angle
10,480 2,260 324.65 27.56 120.61 11.78 2.69
Broking
Motilal
30,960 5,440 616.40 36.27 232.73 17.00 2.65
Oswal
ICICI
23,270 8,940 403.30 27.76 45.71 14.53 8.82
Securities
Geojit
3,860 1,060 53.85 4.42 23.33 12.19 2.31
Financial
Share India
3,990 620 234.40 19.38 70.00 12.10 3.35
Securities
5Paisa Capital 1,790 90 257.90 3.60 58.40 71.64 4.42
SMC Global 8,390 732 N.A. 6.47 64.57 N.A. N.A.
* Market Price as 19th Feb’21 (CMP)
P&L figures based on the TTM financials.
Book value based on 30th Sep’20 half year financials 14Awards & Accolades
2019 2019 2019 2019 2018
2019 Fastest Growing
Promising Business Broking House “Regional Retail
Premier MFI North in
Business Leader Excellence Non-Agricultural Member of the
Depository Best Star MF
of Asia Award ( Order of Commodities of Year (North)”
Participant in Online- BSE
Merit) The Year
Gold Category
2018 2018 2017 2017 2017
2017
Best Fastest Best Financial Best Online Commodity
Best Broker with Krishi Pragati
Growing Service Provider Trading Services Award, 2017 Broker of the
In-House
Commercial Broker Year
Research In
NBFC Bullion Industry
2017 2016 2016 2015 2015 2015
Best Performing Order of Merit- NBFC of the year Property Consultant Corporate Best Financial
Retail Broker of Achieving Market (Northern of the Year - Broker of the Service Provider
Northern Region Leadership region) Residential Year - National
2015 2014 2014 2013 2013 2013
Best Real Estate Best Commodity Best Merchant Best Equity Emerging SME Fastest Growing Equity
Broker of the Broking House Banker – Capital Broking House - Investment Broking House – Large
year Restructuring services Derivative Banker Firm
Segment
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