With increased competitive intensity and changing mix, we except broking yields to continue to decline. Additionally, regulatory reduction in MF TERs continues to pressure distribution revenues in the short term. Cost control will be a key earnings driver (~-10% YoY in FY20E) and we await detailed management commentary on the same. We expect an anemic FY19-22E APAT CAGR of 5.4%. A rally in equity markets coupled with increased retail participation remains a key risk to our call. Despite softer revenues, better cost management aided ISEC to report an in-line 1QFY20. ISEC continues to diversify its revenue streams (distribution of bank products) and focus on cost reduction, as challenges to its core broking and distribution revenue continue. We rate ISEC a NEUTRAL with a TP of Rs 225 (14x Jun-21 EPS).