Angel Broking zooms 20% post March quarter results; stock up 77% in a month

Shares of Angel Broking were locked in the upper circuit of 20 per cent at Rs 512.20 on the National Stock Exchange (NSE) in Thursday's trade after the company reported a healthy 39 per cent quarter-on-quarter (QoQ) jump in its consolidated net profit at Rs 102 crore in the March quarter (Q4FY21) on the back of strong operational income.

It had posted a profit of Rs 73.20 crore in the preceding quarter. On a year-on-year (YoY) basis, the net profit more-than-doubled from Rs 32.6 crore in Q4FY20. The company is one of the largest retail broking houses in India, in terms of active clients on the NSE. 

Angel Broking registered the highest ever quarterly and yearly gross client addition of approximately 1 million and 2.4 million clients in Q4FY21 and FY21, respectively. This translated into significant market-share gain in NSE active client base, overall average daily turnover (ADTO) and overall retail equity turnover market share.

In Q4FY21, overall ADTO increased 66 per cent QoQ to Rs 3,753 billion from Rs 2,261 billion in Q3FY21. Total income grew 33 per cent QoQ at Rs 419 crore. Earnings before depreciation and amortisation and tax (EBDAT) margin remained stable at 49 per cent in Q4FY21 as compared to Q3FY21 despite substantially higher client additions, the company said.

The management said that in spite of the substantial clients added by the industry over the last few quarters, India still remains a highly underpenetrated market w.r.t financial inclusion as compared to USA or China, especially in the smaller cities and towns. Therefore, the ongoing growth shall remain sustainable in the foreseeable future, with Fintech brokers like us garnering a significant share, it said.

The stock is trading at the highest level since listing on the bourses on October 5, 2020. At 13:08 pm, it was quoting at Rs 504, up 19 per cent as against a 0.61 per cent rise in the Nifty50 index. A combined 4.3 million equity shares changed hands on the NSE and BSE, the exchange data shows. In the past one month, the market price of Angel Broking has appreciated by 77 per cent as against a marginal 0.07 per cent gain in the benchmark index.