Angel One soars 18%; ICICI Securities drops 5%

Shares of Angel One climbed 18 per cent while that of ICICI Securities dropped 5 per cent, on Thursday, as investors reacted to the March quarter earnings posted by both brokerages. Angel One, a discount broking firm, posted a net profit of Rs 205 crore, which was double of what they had earned in the same period last year. The number surpassed Street estimates of Rs 175 crore as the broker’s revenue grew 64 per cent year-on-year (YoY) to Rs 671.2 crore.

With an 18.1 per cent surge, Angel One saw its stock end the day at Rs 1,918.7, valuing the company at Rs 15,910 crore.

Meanwhile, ICICI Securities, a premium brokerage, posted a 3 per cent YoY increase in its net profit to Rs 340 crore and 21 per cent increase in revenues to Rs 892 crore.

The company’s profits were down 10 per cent on a quarter-on-quarter basis. Resultantly, its shares fell 5.1 per cent to end at Rs 597, valuing the company at Rs 19,267 crore.

As a result, CLSA reduced its target price on ICICI Securities from Rs 750 to Rs 720 while cutting the company’s earnings growth forecasts for financial year 2022-23 (FY23) and FY24. It however maintained the ‘outperform’ rating. Analysts said the muted performance was on the back of a slump in investment banking activity during the March quarter and also a decline in trading volumes.