Angel One hits record high on strong Q2 results; zooms 106% in 7 months

Analysts believe the Angel Group will continue to strengthen its market position by steady increase in active clients

Share of Angel One hit a record high of Rs 2,250, up 7 per cent on the BSE in Friday's intraday trade, after the stock broking services provider reported a strong performance in the September quarter (Q2-FY24) with 40.7 per cent year-on-year (YoY) growth in gross revenue to Rs 1,049 crore,on the back of strong client accretion and growth in number of orders.

In comparison, the S&P BSE Sensex was down 0.5 per cent at 66,078 at 10:37 AM.

In the past seven months, the stock price of Angel One has more-than-doubled, zooming 106 per cent, from a level of Rs 1,091 on the BSE.

The company said it added the highest-ever clients in a quarter at 2.1 million, a growth of 59.8 per cent on quarter-on-quarter (QoQ) basis with the client base standing at nearly 17.1 million, a growth of 13.3 per cent on QoQ basis. The total number of orders jumped 36.1 per cent QoQ at 338 million from 249 million in Q1-FY24.

Angel One's consolidated profit after tax grew 37.9 per cent QoQ at Rs 304.5 crore, as against Rs 220.8 crore in the previous quarter. Overall faster growth momentum in the topline led to strong profit growth during the quarter.

Angel One is a technology-led financial services company providing broking and advisory services, margin funding and distribution of third-party financial products to its clients.

According to the company, India is still a highly under penetrated market in terms of the geographical reach and wallet share across wealth, credit, and protection products. Angel One’s seamless digital offerings, along with its unparalleled digital acquisition capabilities, positions it well in the industry to garner a dominant market share.

"Angel One is strategically positioned to benefit from the financialisation of savings and digitisation trends. It demonstrated a strong performance in Q2-FY24 with markets reaching an all-time high. The management continues to invest in technology to reinforce its market standing. However, there has been a slowdown in client additions and activation rates," brokerage firm Motilal Oswal Financial Services said in a result update.

CRISIL Ratings believes the Angel Group will continue to strengthen its market position by steady increase in active clients. This improvement in market position will benefit the group by maintaining its earning profile and core profitability over the medium term.