The business is dependent on capital markets and hence, inherently cyclical
Broking firms are bracing for higher taxes on trading, lower exchange rebates, and stricter restrictions on retail futures and options trading since late last year
A falling market and SEBI’s regulatory clampdown have hit brokerages hard, slashing both client counts and profitability. But are we seeing green shoots of recovery?
The top three brokers, Groww, Zerodha and Angel One, had investor bases of around 1.3 crore, 81 lakh and 78 lakh, respectively as of January
By December 2024, the NSE’s active investor base had grown by 44 percent year-on-year, reaching 5.01 crore accounts.
Narayan said that if the fintechs could form an association to speak in a unified voice, they can become a trusted advisor to Sebi
While most full service brokers see marginal growth, SBICAP Securities has seen a 64 percent growth in active investors during last year
While the number of F&O traders is between 10-20 percent of the overall active client base, they generate between 60-70 percent of the revenue for most of the large brokers.
If stock exchanges are asked to charge all brokers the same transaction charges, unlike now when exchanges charge based on the turnover value, then these brokers stand to lose a large part of their revenue.
At the current market price, ICICI securities is trading at a 20% valuation discount to Angel Broking. This indicates that market is considering ICICI securities as just a broker and assigning no value to its large and profitable distribution franchise. Among new-age brokers, Angel has seen exponential growth in profits in recent years. Its quarterly profit has increased from mere Rs 6 crore in Q1FY20 to Rs 48 crore in Q1 FY21 and improved further to Rs 121 crore in Q1 FY22. Find out which stock MC Pro is betting on
The outbreak of the pandemic has brought about a significant change in the pecking order in the broking industry
Despite a stellar performance, ICICI Securities' stock has underperformed in the past one year
The sustainability of the recent improvement in the earnings profile of Angel Broking hinges on high trading volumes, which, in turn, are highly dependent on the level in equity markets
Digitisation and low cost of operations which allows these new age brokers to offer low-brokerage is the reason behind their success.