Angel One shares plunge 13% post Q3 results; what Motilal Oswal says

Angel One Ltd shares took a beating, plunging as much as 13 per cent in Tuesday's trade after the broking firm said its profit fell 14 per cent sequentially on higher growth in cash segment orders, modification in cash intraday tariff structure and higher opex on account of client acquisition.

Profit for the quarter came in at Rs 260.30 crore against Rs 304.50 crore in the September quarter. Sales was up 1 per cen to Rs 1,060.80 crore sequentially in a quarter that saw markets scaling new highs.  The Angel One stock fell 12.76 per cent to hit a low of Rs 3,380 on BSE.

On YoY basis, Angel One's profit after tax was up 14 per cent YoY, still 17 per cent lower than Motilal Oswal's estimates. Expenses for the quarter came in 13 per cent higher than Motilal's estimates as admin and other expenses came in 17 per cent higher than expectations.

Angel One's board has declared a third interim dividend for FY24 at the rate of Rs 12.70 per share and approved the raising of funds through the issuance of non-convertible debentures, amounting to up to Rs 500 crore, in one or more tranches on a private placement basis.

Angel One's F&O market share improved to 26.8 per cent from 26.2 per cent in Q2FY24. F&O average daily turnover grew 22 per cent QoQ and 151 per cent YoY. The number of orders were flat while Revenue per order declined to Rs 22.70,  Motilal Oswal said.

"Angel One is a perfect play on the financialization of savings and digitization. It demonstrated a strong performance in 3QFY24 with markets hitting all-time high. The management continues to invest in technology to strengthen its position. However, its client addition trajectory and the activation rate have slowed down. We look to review our estimates and target post the concall on January 16," Motilal Oswal said.

Also read: Stock recommendations by analyst for January 16, 2024: JK Paper, KEC and JM Financial