The shares of the leading broking house gained up to 9 percent after the company’s net profit and revenue magnified by 39 percent and 44 percent, respectively in Q2FY25.
With a market capitalization of Rs 26,606.71 crore, the shares of Angel One Ltd were trading at Rs 2951.35 per share, increasing around 8.44 percent as compared to the previous closing price of Rs 2,721.75 apiece.
Reason for rise:-
Today, the company shares have seen positive movement after Angel One Ltd revenue zoomed by 44 percent on year on year basis from Rs 1,048 crore in Q2FY24 to Rs 1,515 crore in Q2FY25, however in Quarter on a Quarter basis revenue increased by 8 percent from Rs 1,405 crore in Q1FY25 to Rs 1,515 crore Q2Y25.
Moreover, net profit is magnified by 39 percent on year on year basis from Rs 304 crore in Q2FY24 to Rs 423 crore in Q2FY25, meanwhile on a quarter-on-quarter basis net profit jumped multifold times by 44 percent from Rs 293 crore in Q1FY25 to Rs 423 crore in Q2FY25.
Business performance:-
The company achieved 31% growth in Q1 FY ’25 peak orders, with positive yields in assisted businesses. Milestones in mutual fund distribution were reached with over 0.5 million SIP registrations in June 2024. Expansion into credit, fixed income, and wealth management is underway, pending regulatory approval.
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New Initiatives:-
The company is integrating credit and fixed-income products while launching a wealth management business with a focus on innovation. It is expanding its wealth team and establishing an advisory council and think tank, awaiting final regulatory approval for the asset management segment.
Venturing into lending, the company is distributing secured and unsecured products, including credit cards. It is in beta for unsecured personal loans, with plans to gradually build a secured lending portfolio. Regulatory compliance, especially with SEBI regulations, remains a key focus for this expansion.
Future outlook:-
The company expects ROE to return to previous highs within a few quarters despite regulatory changes, maintaining operating margins of 47%-48%. Strong growth is projected in credit and fixed-income products while targeting emerging HNIs and UHNIs in wealth management.
Retail investors, particularly the youth, are driving equity investments, increasing their AUM. SIP registrations are showing good traction, with an average SIP value of Rs. 1,500. No changes are expected in LTV for clients, with a focus on extending customer relationships through long-term investments.
Company profile:-
Angel One Limited is a full-service retail brokerage company. It is engaged in the business of stock, currency, and commodity broking, providing margin trading facilities, depository services, and distribution of mutual funds to its clients. The Company also provides portfolio management services.
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Written by:- Abhishek Singh
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