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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 130.00 | ACUITE A- | Stable | Reaffirmed | - |
| Bank Loan Ratings | 270.00 | - | ACUITE A1 | Reaffirmed |
| Total Outstanding | 400.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) on the Rs. 130.00 Cr. bank facilities of Choice Equity Broking Private Limited (CEBPL). The outlook is ‘Stable’. Acuité has reaffirmed the short-term rating of ‘ACUITE A1’ (read as ACUITE A one) on the Rs. 270.00 Cr. bank facilities of Choice Equity Broking Private Limited (CEBPL). The outlook remains ‘Stable’. Rationale for rating The rating takes into account the sustained growth in revenue and significant improvements in the earning profile at the consolidated level marked by its PAT of Rs. 162.71 Cr. during FY2025 (FY2024:- Rs.130.86 Cr.) For FY2025, the total operating income of the Group stood at Rs 910.38 Cr. as against Rs 750.81 Cr. in FY 24. The rating further derives strength from healthy capital structure, experienced management and established position in its segment. The rating takes into account the group’s low leveraged profile and Networth which stood at 0.70x and Rs. 960.87 Cr. for FY 25 as compared to 0.81x and Rs 563.33 Cr. for FY 24 respectively. Acuite takes cognizance of CEBPL’s growing retail and institutional clientele, higher share of revenues from retail broking with negligible dependence on proprietary profits. Acuite also takes note of CEBPL's growth in PAT and scale of operations. The rating is however constrained on account of CEBPL’s revenue susceptibility to the level of volatility/ turnover in the capital markets as well as highly competitive landscape in broking business. Going forward, continued promoters support and ability of the company to sustainability improve its operating performance are key monitorables. |
| About the Company |
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Incorporated in 2010, Choice Equity Broking Private Limited (commonly known as Choice Broking) is a Mumbai-based full-service stockbroking firm. Choice broking is a subsidiary of a publicly listed financial services firm named 'Choice International Limited' that was formed in 1993. Choice Broking offers online trading and premium financial services for an entire range of financial products like Equity, Derivatives, Currency, Commodities, Mutual Funds, wealth management, Portfolio management, Insurance, and Loan against share. The company has a depository membership with CDSL and NSDL and is a member of NSE, BSE, MCX, NCDEX, and ICEX. The brokerage charges of Choice Broking are claimed to be one of the lowest in India when compared to other full-service brokers in the industry. |
| About the Group |
| Choice International Limited was incorporated in 1993. Listed on NSE and BSE as Choice International Limited (Choice) is more than two decades old company under the leadership of Mr. Kamal Poddar (MD). It is an end to end financial services conglomerate. Choice Group has successfully created a FinTech ecosystem which combines a suite of platforms under one roof for all financial services. The company through its multiple subsidiaries offers financial and consultancy services catering to retail and institutional clients, corporates and state and central governments. |
| Unsupported Rating |
| Not Applicable |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has adopted a consolidated approach and considered the business and financial risk profile of Choice International Limited (CIL) and its subsidiaries, (the Company and its subsidiaries together referred to as the Group) for arriving at the rating. The approach is driven by common management, shared brand, and strong operational and financial synergies between the group companies. |
| Key Rating Drivers |
| Strength |
| Strategic importance and ownership benefits from CIL & group synergies; experienced management Choice Equity Broking Private Limited is the wholly owned subsidiary of Choice International Limited. CEBPL benefits from common management, shared brand, and strong operational and financial synergies between the group companies. Choice International Limited was incorporated in 1993 and is engaged in providing financial services. It operates through the segments of NBFC services, Broking & Distribution, Advisory services, and IT Services Business. The company generates majority of the revenue from Broking and distribution services. It offers services like equity trading, commodity derivative trading, financial planning, currency futures trading, fund distribution, advisory, and structured products. The company conducts its business operations mainly in India. As on March 31, 2025, the group has 6 subsidiaries and 12 step down/ jointly controlled subsidiaries. The management team is led by Mr. Kamal Poddar, a Fellow Member of the Institute of Chartered Accountants of India, is the Managing Director of Choice International Limited. He is involved in all the strategic decisions of the group. Mr. Ajay Kejriwal (Executive Director- CIL), who has experience of more than 15 years in financial markets. He possesses extensive experience in understanding the financials of companies and fund management within division. The BoD consists of 12 members, out of which 7 are independent members. The management team has more than two decades of experience in capital markets and has developed strong expertise in securities market trends, compliance and business development strategies. Acuité believes, that the company’s consolidated business profile will be supported by expertise of seasoned professional managing the operations and established track record of operations. Comfortable capital structure At group level, Choice group’s capitalization levels were comfortable marked by tangible Networth of Rs. 563.22 Cr. as on March 31,2024 (excluding revaluation reserve and intangible assets) , the networth has increased to Rs. 960.87 Cr. in FY2025. Gearing of the Group stood at 0.70x during FY2025 as compared to 0.81x during FY2024. CEBPL (standalone) also has adequate capitalization levels marked by Networth of Rs. 311.48 Cr. for Prov. FY25 (Rs 225.52 Cr. as on March 31,2024) and a gearing of 0.77 times as on Prov.FY 25 (0.45 times as on March 31, 2024) Acuité believes that the company’s comfortable capitalization levels will support its growth plans over the medium term. Earnings profile Choice Group reported total operating income of Rs.910.38 Cr. in FY 2025 from key business verticals as compared to Rs.750.68 Cr. in FY2024. The company reported a PAT of Rs 162.71 Cr. for FY25.The businesses at Group level are categorized as Equity & Broking, Insurance Broking, Wealth Management, Retail Loan Distribution, Management Consulting, Government Advisory and Others. For FY2025, the Broking business contributed Rs 551.18 Cr. followed by Advisory services (Rs 250.28 Cr.), NBFC services (Rs 114.80 Cr.) and others (Rs 33.10 Cr.).The group reported total revenue (not adjusted for inter segment revenue) of Rs. 921.66 Cr. for FY2025. The group reported total revenue (not adjusted for inter segment revenue) of Rs. 759.34 Cr. for FY2024 where Broking business contributed Rs. 454.59 Cr. followed by Advisory services (Rs. 225.93 Cr.), NBFC services (Rs. 86.84 Cr.). The Group reported PAT of Rs. 130.86 Cr. for FY2024 as compared to Rs. 60.07 Cr. for FY2023. At Standalone level, CEBPL reported a PAT of Rs. 81.78 Cr. for Prov. FY2025 as compared to Rs. 64.86 Cr. for FY2024.Acuité believes that despite an improvement in Choice Group earning profile, its business operations would remain susceptible to inherent risks in capital market and overall economic environment. |
| Weakness |
| Risks involving general economic and market conditions Broking is a highly volatile and cyclical business with the presence of a large number of established players who provide significant competition to the other fragmented and small players. The company's operating performance is linked to the capital markets, which are inherently volatile as they are driven by economic and political factors as well as investor sentiments. Also, revenues generated from businesses like broking, wealth management, private client broking and investment advisory business, are directly related to the volume and value of the transactions. Any adverse market movement (downturn) would result in decline in transaction volumes leading to a decline in the group’s revenues received from commissions earned from such businesses. While the Group continues to benefit from its business model the level of activity in the equity, commodities and F&O markets will be key determinant of its revenue profile and future growth trajectory. Given the competition from larger brokerages and technology-focused new entrants, the ability of the group to grow its brokerage revenues on a sustainable basis will be a key monitorable. Acuité believes that the level of activity in the capital markets will continue to be a key determinant of its revenue profile and future growth trajectory. |
| ESG Factors Relevant for Rating |
| Incorporated in 1993, Choice International Limited is a Maharashtra based company. It is involved in Activities auxiliary to financial intermediation, except insurance and pension funding. Mr. Suyash Sunil Patodia & Mr. Kamal Poddar are the managing directors of the company. The group ensures that it takes up initiatives towards sustainability and reduction in carbon emissions and promotes eco- friendly practices.The group is committed to upholding strong governance practices and drive value for its stakeholders while fostering an ethical and transparent work environment. The board of Choice International Limited comprises of 12 members including executive, non-executive, and independent directors and adheres to all applicable regulations to maintain integrity, excellence and responsible growth. Further the group is dedicated to ensure an inclusive and encouraging work environment. dedicated to work towards employee development through skills training programs, coaching and mentorship, ensuring as well as employee wellness programs. |
| Rating Sensitivity |
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| Liquidity Position |
| Adequate |
| Business growth of Choice Group has been supported by the group’s internal accruals, the company’s dependence on debt is very low as reflected in low gearing of 0.70 times as on March 2025. Hence, the company has no significant term debt obligations over the near term. The group currently has Cash and bank balance of Rs. 138.79 Cr. as on March 31, 2025. CEBPL has bank facilities comprising of bank guarantee and overdraft facilities, which are used for margin requirements. CEBPL has a cash and cash equivalents of Rs 27.63 Cr for Prov. FY25. Acuité believes the liquidity position will remain adequate in the near to medium term. |
| Outlook: Stable |
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| Other Factors affecting Rating |
| None |
| Key Financials - Standalone / Originator | ||||||||||||||||||||||||
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| Key Financials (Consolidated) | ||||||||||||||||||||||||
*Tangible Networth is been considered for FY24 calculations |
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| Status of non-cooperation with previous CRA (if applicable) |
| Not Applicable |
| Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite) |
| Not applicable |
| Any Other Information |
| None |
| Applicable Criteria |
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• Service Sector: https://www.acuite.in/view-rating-criteria-50.htm • Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Consolidation Of Companies: https://www.acuite.in/view-rating-criteria-60.htm |
| Note on complexity levels of the rated instrument |
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| *Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support) | ||||||||||||||||||||||||||||||||||||||
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