Angel One Ltd witnessed a remarkable surge of over 7% on April 18, fueled by the company’s robust financial performance for the quarter ended March 31. The company reported a significant 27.3% year-on-year growth in net profit, amounting to Rs 340 crore, while its revenue from operations soared by an impressive 64.3% over the previous year to Rs 1,357.2 crore.
Angel One is undergoing a strategic shift in its business model, aiming to enhance its market share in the cash segment and achieve substantial growth in distribution revenues over the next 2-3 years. Motilal Oswal anticipates that growth in the distribution segment will be primarily driven by loans, insurance, and other products.
On the operational front, Angel One’s earnings before interest, tax, depreciation, and amortization (EBITDA) witnessed a notable increase of 37.2% to Rs 529.7 crore in the fourth quarter. However, the EBITDA margin contracted to 39% from 46.7% in the corresponding period of FY23.
The brokerage firm’s management continues to prioritize investments in technology to bolster its competitive position.
Total expenses for Angel One rose approximately 92%, resulting in a decline in net profit margin to 25%. The company has been intensifying its spending on client acquisition and technological enhancements amidst growing competition from online brokers like Zerodha, Groww, and Upstox.
Angel One’s market share of demat accounts in India increased to 14.7% in the Jan-March period, up from 12% a year earlier.
As of 9:17 am, Angel One shares were trading 7% higher at Rs 3,070.60 on the National Stock Exchange (NSE). Over the past year, the stock has delivered impressive returns of over 135%, outperforming the benchmark Nifty 50’s 26% rise during the same period.
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