Angel One stock surges 8% on robust net profit, revenue growth in Q2

Angel One stock has fallen around 24 percent so far this year, massively underperforming Nifty's returns of 15 percent.

Shares of Angel One zoomed around 8 percent on October 15 as investors cheered the discount broker's strong set of earnings for the quarter ended September 2024 (Q2 FY25).

The company's net profit surged 39.1 percent on-year to Rs 423.4 crore and revenue went up by 44.5 percent YoY to Rs 1,514.7 crore during this period.

The profit and revenue growth came at a time when trading activity has witnessed strong growth. Angel One competes with Zerodha, Groww and Upstox, and its share in total demat accounts rose to 15.7 percent in the Jul-Sep quarter as against 13.2 percent a year ago.

Operationally, Angel One's earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 51.5 percent YoY to Rs 671.9 crore, while EBITDA margin expanded by 210 basis points to 44.4 percent from 42.3 percent last year.

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Its total client base increased by 61 percent YoY to 27.5 million as of September 30. Angel One's gross client acquisition for the quarter jumped by 41 percent YoY to 3 million.

The broker's share in India's demat accounts increased by 251 basis points from last year. Meanwhile, the number of orders placed on Angel One's platform during the quarter increased by 44.5 percent YoY to 489 million.

"With a 19.3 percent share in the overall retail equity turnover, we continue to report an improvement in market share across all segments," said Angel One's CMD Dinesh Thakkar.

Also Read | Angel One delivers a 44% on year revenue growth at Rs 1514.7 crore, net rises to Rs 423 crore

Angel One's expenses rose during the quarter under review. The broking firm cited employee and stock options costs "on account of onboarding of talent in wealth, tech, product and data analytics," as the reason for higher expenses.

Angel One shares ended a percent higher at Rs 2,729.95 on the National Stock Exchange (NSE) in the previous session. The stock has fallen around 24 percent so far this year, massively underperforming Nifty's returns of 15 percent.

In the last one year, however, the counter has risen around 31 percent compared to Nifty's gain of 27 percent during this period.

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