The stock of this broking firm has zoomed 101% in a month

In the past one week, the stock has zoomed 61 per cent, after the company reported a healthy 39% QoQ jump in its consolidated net profit at Rs 102 crore in the March quarter

Shares of Angel Broking, on Monday, were locked in 10 per cent upper circuit at Rs 612.50 on the BSE, with only buyers seen on the counter. In the past one week, the stock has zoomed 61 per cent, 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.

The stock is trading at the highest level since listing on the bourses on October 5, 2020. In the past one month, the market price of Angel Broking has appreciated by 101 per cent as against a marginal 0.06 per cent decline in the S&P BSE Sensex. The stock has been also doubled against its issue price of Rs 306 per share.

Angel Broking (ABL) is one of the largest retail broking houses in India in terms of active clients on NSE. ABL is a technology-led financial services company providing broking and advisory services, margin funding, loans against shares and financial products distribution to its clients under the brand “Angel Broking”. Broking and allied services are offered through online and digital platforms, and network of over 15,000 authorized persons.

ABL registered a record growth in FY21 and accomplished many milestones, such as 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, the company’s 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 company registered 29 per cent QoQ growth in gross client base, while ADTO increased 66 per cent over the previous quarter.

Meanwhile, foreign portfolio investors (FPIs) increased their stake in ABL to 5.01 in Q4FY21; from 4.74 per cent at the end of December 2020 quarter (Q3FY21). Mutual funds also hiked their holdings in the company to 11.91 per cent from 11.62 per cent in previous quarter. They held 6.99 per cent stake in ABL at the end of September 2020 quarter (Q2FY21), the shareholding pattern data shows. Meanwhile, individual shareholders, who held share capital upto Rs 2 lakh in ABL, decreased to 4.11 per cent from 4.52 per cent. They held 9.88 per cent stake in the company in Q2FY21.