Arihant Capital shares rebound 8% after strong Q1 performance

Shares of Arihant Capital Markets rebounded about 8 per cent during the early trading session on Monday after the company reported a strong performance in the quarter ended on June 30, 2023.

Arihant Capital Markets (ACML) reported a 54 per cent rise in the net profit on a year-on-year (YoY) basis to Rs 11.55 crore in the June 2023 quarter. The company had clocked a bottomline of Rs 7.45 crore in the same quarter previous year. The revenue from operations increased about 23 per cent on YoY basis to Rs 42.79 crore in Q1FY24, from Rs 34.78 crore a year ago.

ACML successfully increased its client acquisition rate through a digital-first approach. The company management intends to onboard 5 lakh new customers. The company also plans to raise funds externally to meet the ongoing demand from existing customers and scale its book.

Following the announcement of results on the weekend, shares rose 8 per cent from day's low at Rs 56.15 on Monday to Rs 60.44 during the session. The company was commanding a total market capitalization of more than Rs 625 crore. The scrip had settled at Rs 59.19 on Friday. The stock has gained more than 55 per cent in the last one month.

Arihant Capital Markets' interest income rose to Rs 12.29 crore in Q1 FY24, while its incremental business costs reduced for the period.  The company is positive about the outlook for FY 2024 as it has achieved the mandate for a main board IPO.  It foresees a strong income trend continuing from the June quarter.

Established in 1992, Arihant Capital is a boutique stock broking firm operating in central India, providing a wide range of financial products and services in equities, commodities, currency trading, financial planning, and investment banking among others. It extends its services to over 2 lakh customers across more than 200 cities through a network of more than 750 investment centers.

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