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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| Total Withdrawn | 0.00 | - | - |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). Rationale for rating The rating reaffirmation takes into account the sustained growth in revenue and significant improvements in the earning profile of Choice International Limited (CIL; herein after referred as 'Group') at the consolidated level in 9MFY26. Further, the rating derives strength from the group’s healthy capital structure supported by equity infusions and low leveraged profile. Further, the experienced management and established position in diverse segments provide healthy growth visibility over the medium term. Additionally, rating draws comfort from the sustained level of revenues of Choice Equity Broking Private Limited (CEBPL) in FY25 as well as till 9MFY26; supported by growing retail and institutional clientele, higher share of revenues from retail broking with negligible dependence on proprietary profits along with improvement in revenue and PAT level. However, the same is constrained by fluctuations/volatility stemming from capital markets as well as highly competitive landscape in broking business. Going forward, continued promoters support and ability of the company to sustainably 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 directors of the company are Mr. Kamal Poddar and Mr. Ajay Kejriwal.
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| About the Group |
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Incorporated in 1993, Choice International Limited (CIL or group) is an end-to-end financial services conglomerate based in Mumbai. CIL has created a FinTech ecosystem which combines various platforms under one roof for all financial services under the leadership of Mr. Kamal Poddar. The company through its multiple subsidiaries offers financial and consultancy services catering to retail and institutional clients, corporates and state and central governments.
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| Unsupported Rating |
| Not applicable. |
| Analytical Approach |
| Extent of Consolidation |
| •Full Consolidation |
| Rationale for Consolidation or Parent / Group / Govt. Support |
| Acuité has considered a consolidated business and financial risk profile of Choice International Limited (CIL) and its subsidiaries to arrive at the rating. The consolidation is in view of the common management, shared brand, and strong operational and financial synergies between the group companies.
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| Key Rating Drivers |
| Strength |
| Strong presence of CIL group with diversified business profile
CIL was incorporated in 1993 and has more than two decades of market presence under the leadership of Mr. Kamal Poddar (MD). The group has diversified business operations, engaged in providing financial services and operates through the segments of NBFC services, broking & distribution, advisory services, and IT services business generating majority of the revenue from broking and distribution services followed by revenue contribution from other segments. CEBPL is the wholly owned subsidiary of CIL and therefore benefits from common management, shared brand, and strong operational and financial synergies between the group companies. 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, CIL’s capitalization levels are comfortable marked by improving tangible net worth from Rs.960.87 Cr. as on 31st March, 2025 as against Rs.563.22 Cr. as on 31st March, 2024 (excluding revaluation reserve and intangible assets). Further, the gearing (debt-equity) of the group stood at 0.70 times during FY25 as compared to 0.81 times during FY24. Moreover, the substantial equity raise of ~Rs 693 Cr. (Rs 600 Cr. raised in 9MFY26) shall further strengthen the net-worth of the group. Furthermore, CEBPL also has a healthy financial risk profile marked by growing net worth of Rs.311.48 Cr. as on 31st March, 2025 as against Rs.225.52 Cr. as on 31st March, 2024 owing to accretion of profits. Also, on account of low debt profile, the debt-equity also stood below unity over the years at 0.77 times as on 31st March, 2025 and debt protection metrics remained healthy. Acuité believes that the company’s comfortable capitalization levels will support its growth plans over the medium term. Growing scale of operations At a consolidated level, CIL's total operating income (adjusted for inter segment revenue) increased to Rs.910.38 Cr. in FY25 as compared to Rs.750.68 Cr. in FY24. Additionally, the revenue stood at Rs.830.66 Cr. during 9MFY26. The growth during this period is primarily attributable to the broking business followed by advisory services (Rs.238 Cr. in 9MFY26 against Rs.160 Cr. in 9MFY25), NBFC services (Rs.121.64 Cr. in 9MFY26 against Rs.77.41 Cr. in 9MFY25) and others. Further, the overall profitability increased from Rs.130.86 Cr. in FY24 to Rs.162.71 Cr. in FY25 and to Rs.170.04 Cr. during 9MFY26. Moreover, at the broking and distribution segment level of CIL; the operating income stood at Rs.460.49 Cr. during 9MFY26, increasing from Rs.422.14 Cr. in 9MFY25 mainly driven from brokerage income along with improved demat base, increased stock broking client assets and higher presence in tier 2 and tier 3 markets. The stock broking client assets reaching ~Rs.60,500 Cr. in Q3FY26. |
| 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 due to regulatory changes 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 |
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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.
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| Rating Sensitivity |
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| Liquidity Position |
| Adequate |
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The business growth of CIL has been supported by the group’s internal accruals. The group’s dependence on debt is low as reflected in low gearing of 0.70 times as on 31st March 2025. Hence, the group has no significant term debt obligations over the near term. Further, the cash and bank balance stood at Rs.138.79 Cr as on 31st March, 2025.
Further, CEBPL has bank facilities comprising of bank guarantee and overdraft facilities, which are used for margin requirements. CEBPL has cash and cash equivalents of Rs 27.63 Cr during 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. |
| Any Other Information |
| None. |
| Applicable Criteria |
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• Banks And Financial Institutions: https://www.acuite.in/view-rating-criteria-45.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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