The shares of the fastest-growing retail brokerage firm fell up to 12 percent after the company’s net profit decreased by 60 percent YoY and 62 percent QoQ in the fourth quarter.
With a market capitalization of Rs 1,678.07 crore, the shares of 5paisa Capital Ltd were trading at Rs 539.45 per share, decreasing around 6.14 percent as compared to the previous closing price of Rs 574.75 apiece.
Looking into the company’s Performance, 5paisa Capital Ltd’s revenue increased by 12 percent on a quarter-on-quarter basis from Rs. 100.26 crores in Q3FY24 to Rs.112.86 crores in Q4FY24. Further, revenue increased by 24 percent year on year from Rs. 90.59 crores in Q4FY23 to Rs.112.86 crores in Q4FY24.
5paisa Capital Ltd’s net profit decreased by 61 percent on a quarter-on-quarter basis from Rs.15.09 crores in Q3FY24 to Rs. 5.78 crores in Q4FY24. Further, net profit decreased by 60 percent year on year from Rs. 14.41 crores in Q4FY23 to Rs. 5.78 crores in Q4FY24.
The company’s customer base consists mostly of individual investors and traders who operate in the securities market and want do-it-yourself (DIY) services. Its product offerings include brokerage, mutual funds, wealth management, research products, insurance, algorithmic trading, commodities, a learning platform (Finschool), and a community.
The company’s profitability measures show an incline in return on equity (RoE) from 3.67 percent in FY 21-22 to 9.40 percent in FY 22-23, while, during the same period return on capital employed (RoCE) increased from 10.56 percent to 16.60 percent. In contrast, the net profit margin (NPM) was 12.89 percent in fiscal year 22-23.
In the company’s recent shareholding pattern, the Promoters of the company own 32.80 percent while Retail shareholders own a 44.24 percent stake in the company, and Foreign Institutional Investors own a 22.66 percent stake.
5paisa Capital Limited is an India-based technology-driven financial services firm that mostly operates online. The Company’s primary business is to provide brokerage services to its clients in India’s capital markets, with all other businesses serving as secondary functions.
Written by:- Abhishek Singh
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