The shares of this multibagger Broking stock dipped more than 14 percent in Tuesday’s trading session after the company reported underperforming numbers as far as the bottom-line numbers are concerned.
With a market capitalization of Rs 27,941.23 crores, the stocks of Angel One Limited closed at Rs 3,328.30 on Tuesday, slipping approximately 14 percent as compared to the previous closing levels of Rs 3,874.70 apiece.
Such a sudden drop in the share prices of the Broking firm were witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for the quarter ended December 2023.
On a sequential basis, the company’s prime business indicators such as operating revenues and after-tax profits (from continuing operations) showed movements in opposing directions.
The former, on one end, moved up marginally from Rs 1,048 crores during Q2FY24 to Rs 1,059 crores during Q3FY24, and the latter, on the other end, dipped approximately 15 percent from Rs 305 crores to Rs 260 crores keeping the timeframe the same.
Year-on-year, the metrics mentioned above, in contrast to the pattern shown above, reported an increase in numbers with the operating revenues rising from Rs 749 crores during Q3FY23 to Rs 1,059 crores during Q3FY24, and the net profits from continued operations, during the same horizon, increasing from Rs 228 crores to Rs 260 crores.
Despite the dip in the stock price today, the company’s stock has delivered multibagger returns of around 111 percent to its stakeholders in the past six months, viz, if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.11 lakhs.
Historically, the company has been successful in reporting healthy profit margins with the net profit margin (NPM) reported at 29.64 percent. Moreover, the profitability ratios such as the return on equity (RoE) and the return on capital employed (RoCE) were reported at decent numbers with the former reported at 41.17 percent and the latter at 56.72 percent.
As per the recent presentations, the company’s revenue mix showcases an increase in the segments of interest income, depository income, Ancillary Transaction Charges, and other
income. On the other hand, the company’s revenue from gross broking segment, the major contributor, dipped in number from 69 percent during Q2FY24 to 67 percent during Q3FY24.
Founded in 1996, Angel One Limited is an India-based company providing broking as well as advisory services, loans against shares, margin funding, and distribution of financial products to clients under the brand ‘Angel Broking’.
Written by Amit Madnani
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