ICRA has revised the rating of the reduced Short Term Non Fund Based Bank Lines of Emkay Global Financial Services (EGFSL) to A2 from A2+. The rating takes into account the declining profitability indicators for the company over the last few years, moderate diversification of business revenues which remain mainly dependent on capital markets and likely losses to be incurred by the company on account of error trade on NSE which could impact financial flexibility. The exact quantum of the loss on account of the erroneous trade and its fallout on the business profile of the company shall remain a key sensitivity.
The rating also factors in the weak to moderate outlook for the Indian broking industry over the short term given pressures on profitability driven by increasing competition and decreasing brokerage yields without commensurate decline in operating costs.
Emkay Global Financial Services, a truly Indian, dynamic and visionary firm in the financial services arena, offers the entire gamut of advisory services under one roof. Right from investing, trading, research and financial planning to portfolio management services, it provides its clients with integrated, robust and reliable solutions to satisfy all their financial needs.
| Company Name | CMP |
|---|---|
| Motilal Oswal Fin | 790.80 |
| Angel One | 321.00 |
| IIFL Capital Service | 319.65 |
| Nuvama Wealth | 1375.50 |
| Share India Sec. | 148.80 |
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