Angel One shares in focus after Q2 business update

Shares of Angel One Ltd will be in focus on Friday morning after the brokerage in its September update said its average daily turnover (notional) grew 53.21 per cent YoY to Rs 45,39,200 crore in the September quarter compared with Rs 29,62,100 crore in the same quarter last year. F&O ADTO grew 53.1 per cent YoY to Rs 44,67,400 crore. 

In terms of options premium turnover, Angel One's overall ADTO jumped 61.5 per cent YoY to 87,100 crore in Q2 against Rs 54,000 crore in the year-ago quarter.

Angel One said its gross client acquisition for the month stood at 29.9 lakh against 25.8 lakh in the June quarter and 21.2 lakh in the year-ago quarter. 

The client base grew 61 per cent YoY to 2.75 crore against 1.7 crore in the year-ago quarter. The average client funding book for the quarter rose 176 per cent to Rs 3,889 crore against Rs 1,407 crore. The average daily orders stood at 76.40 lakh, up 42.3 per cent YoY over 53.7 lakh in the year-ago quarter. Number of orders totalled 48.92 crore in the September quarter against 46.22 crore in June and 33.84 crore in the year-ago quarter. 

Angel One said its cash turnover market share stood at 17.5 per cent against 16.6 per cent in June quarter and 14 per cent in the year-ago quarter.

Angel One shares are down 24 per cent in 2024 so far. SEBI recently announced a few measures aimed at curbing retail speculation in the F&O segment. MOFSL said its sensitivity analysis yields nil earnings impact for Angel One in FY26 even if the order volumes are down 10 per cent against its assumption of 16 per cent growth in case the company is able to increase its realisation from Rs 19.7 to Rs 25. The brokerage maintained 'BUY' rating on Angel One for now.

MOFSL said Angel One will use levers at appropriate time to offset the profitability hit. Turnover volumes for Angel One is likely to be impacted but it is difficult to ascertain the absolute impact at the current juncture, MOFSL said.