The companies are waiting for signs that the stock market recovery will sustain before plunging into aggressive expansion, said George. Investors are still taking a very short-term view and booking profits on any small increase, he added.
Meanwhile, they are launching new verticals to sustain during volatile stock markets such as wealth management services to the millionaires.
With the complexities in the financial market going up, its difficult for individuals to manage their own portfolios, leading to growth in the vertical, they added."
But, margins of brokerages have already improved from stagnant levels in 2008/09.
Top brokerages such as Motilal Oswal Securites reported EBIDTA margin of 39 per cent in 2008/09, unchanged from the previous year, while Edelweiss Capital reported pre-tax margin of 36.54 per cent, down from FY08's 41 per cent.
The industry is expecting operating margins to rise 10-15 per cent on year riding on the stock recovery, said India Infoline's Jain.
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