Angel One Shares Plummet 13% Following Disappointing Q3 Results

Shares of broking firm Angel One experienced a steep decline of 13% in Tuesday’s trading session after the company released its Q3 results showing a 14% drop in net profit compared to the previous quarter. The profit for the quarter stood at Rs 260.30 crore, displaying a positive YoY growth of 14%, but still falling short of Motilal Oswal‘s estimates.

Angel One’s revenue from operations witnessed a 1% sequential increase and a remarkable 41% YoY growth, reaching Rs 1,060.80 crore. The company achieved its highest-ever client addition in Q3, welcoming 2.5 million new clients. By the end of December 2023, Angel One’s client base grew to 19.5 million, representing a robust 55% YoY growth.

During the quarter, Angel One reported 350 million orders, marking a significant 54% YoY increase. The average daily turnover surged to Rs 36 trillion in Q3, representing a 21.4% QoQ jump and a substantial 148.5% YoY surge. Angel One’s market share in the retail turnover segment of equity reached 26.8% in Q3FY24, indicating a notable 529 basis point improvement YoY.

Dinesh Thakkar, Chairman & Managing Director of Angel One, commented on the company’s performance stating, ‘Angel One has always focused its efforts to offer clients the most suitable products, in a seamless and efficient manner by harnessing the power of data and technology. Our digital assets are continuously evolving, enriched with innovative features to ensure an unparalleled investing experience.’

Despite reporting positive numbers, Angel One’s shares experienced a sharp decline of 12.5% during Tuesday’s trading session, hitting a two-week low of Rs 3,380 on BSE. However, the company’s shares have delivered substantial returns since its listing in 2020, with a multi-bagger return of 250% in CY21 and an additional rally of 11% in CY22. In CY23, the stock gained another 166%, and in the current month, it has increased by 1.50%.

Angel One’s significant decline in share value might be attributed to the lower-than-expected profit and higher expenses during the quarter. Investors should exercise caution and consult certified experts before making any investment decisions.

Source: Livemint