Investor Presentation Summary

Business Operations and Services

Rikhav Securities Limited is a diversified Indian stock-market services firm incorporated in 1995 and formally launched in 2005. The company provides comprehensive financial services including:

  • Stock Broking Services: Member of NSE & BSE (Cash & Derivatives segments) with FY26 equity broking volume of ₹10,321.82 Cr (ADTO: ₹41.62 Cr) and derivatives trading volume of ₹1,14,864.93 Cr (ADTO: ₹463.17 Cr)
  • Market Making: Registered market maker with BSE (since 2012) and NSE (since 2016), actively supporting approximately 46 SME IPOs annually
  • Depository Services: Registered depository participant with CDSL serving 18,400+ active depository clients
  • Proprietary Trading: Algorithm-driven arbitrage, delta-hedging and short-term strategies using company's own capital
  • Margin Trading Facility (MTF): Officially approved by BSE & NSE to offer credit against client holdings
  • Mutual Fund Distribution: Offers equity, debt, hybrid, and ELSS schemes through centralized platform
  • IPO Application Services: SEBI-registered stock broker enabling client IPO applications via online portal

Technology and Client Metrics

The company maintains a technology-driven platform with:

  • Low-latency, high-efficiency trading system with automated risk management
  • Paperless KYC/account-opening portal and live mobile trading app
  • Maintains over 99% retention of active clients
  • Digital-first client onboarding through Meon Aadhaar eKYC platform

Financial Performance FY26

Despite challenging capital market conditions with elevated volatility and tighter liquidity, the company reported:

  • Total Income: ₹1,991.62 Cr
  • Net Profit: ₹18.96 Cr
  • Business & Investment activities: ₹1,949.94 Cr
  • Brokerage & Commission: ₹22.99 Cr (Cash Market: ₹21.66 Cr, F&O: ₹1.26 Cr, Currency & Commodity: ₹0.07 Cr)
  • Demat operations & Other Income: ₹18.68 Cr
  • EBITDA: ₹32.53 Cr
  • Finance Costs: ₹5.31 Cr
  • Depreciation: ₹1.22 Cr
  • PBT: ₹26.00 Cr
  • Tax: ₹7.15 Cr

Balance Sheet Position (FY26)

  • Equity: ₹19.15 Cr
  • Reserves: ₹226.32 Cr
  • Net Worth: ₹245.47 Cr
  • Total Assets: ₹398.35 Cr
  • Fixed assets: ₹6.84 Cr (increased due to technology investments)
  • Cash & Bank Balance: ₹237.37 Cr
  • Inventories: ₹104.15 Cr
  • Trade receivables: ₹16.03 Cr

Cash Flow (FY26)

  • Cash from Operations: ₹65.32 Cr
  • Cash from Investments: -₹6.75 Cr
  • Cash from Financing: ₹2.57 Cr
  • Net Cash Flow: ₹61.14 Cr

Leadership Team

The management team includes:

  • Mr. Hitesh Himatlal Lakhani: Chairman & Managing Director with 40+ years experience, Chartered Accountant
  • Mr. Rajendra N. Shah: Whole-Time Director & CFO with 40+ years experience
  • Mr. Monil Rajendra Shah: Executive Director with 6+ years experience, leads mutual fund offerings
  • Ms. Bharti Hitesh Lakhani: Non-Executive Director with 34+ years experience
  • Mr. Manish Lalitkumar Jain: Non-Executive Independent Director with 34+ years experience
  • Mr. Tarang Madanjit Mehta: Non-Executive Independent Director with 50+ years experience, legal and compliance expert

Growth Strategy and Future Plans

The company's strategic initiatives include:

  • Geographical Expansion: Expansion beyond core markets of Maharashtra and Gujarat through digital channels, franchise partnerships, and sub-broker networks
  • Digital Client Acquisition: Planned investment in digital marketing to drive online client onboarding
  • Product Expansion: Launch of online joint account facility to streamline client registration
  • Institutional Business Development: Targeted growth in institutional brokerage via empanelment with foreign direct investors (FDIs) and banks
  • Technology Upgrades: Ongoing development of quantitative strategies for prop and client trading, along with enhancements to research and back-office systems
  • Capital Reallocation: Planned reduction in market investments to increase focus on proprietary trading, brokerage business, and margin trading facility (MTF)

Market Context

The presentation highlights India's growing financial services sector with:

  • National savings rate of 30.2% of GDP in 2023
  • Projected 58.4% growth in Ultra High Net Worth Individuals (12,069 to 19,119) between 2022-2027
  • Mutual fund AUM of ₹64.97 trillion (US$780.7 billion) as of July 2024, with 6x growth over past decade
  • 40 IPOs raising ₹51,365 crore (US$6.17 billion) in H1 FY25
  • Derivatives turnover reaching US$947.24 trillion in FY24

Risk Factors

The document notes forward-looking statements are subject to risks including Indian and international economic performance, industry competition, technological changes, market preferences, and the company's ability to implement strategy successfully.