The value of Angel One’s stock went down after they shared their Q3FY24 results. Their net profit decreased by 14. 50% compared to the previous quarter, but it improved by 14% compared to the same time last year. The money the company made from its business went up by 1% from last quarter and 41% from last year. The company also got 2. 5 million new clients in the last 3 months.
2 min read 2024-01-16, 04:20 PM IST
Summary of the content
- Q3 FY24 net profit: ₹260 crore, a 14.50% QoQ decrease but a positive 14% YoY improvement.
- Total revenue from operations: ₹1,059 crore, up 1% QoQ and 41% YoY.
- Highest-ever client addition in Q3FY24, reaching 2.5 million clients.
- Client base expanded to 19.5 million, a 14% QoQ increase and a 55% YoY growth.
- Number of orders: 350 million in 3QFY24, a 54% YoY increase.
- Average daily turnover (ADTO): ₹36 trillion in Q3FY24, a 21.4% QoQ jump and 148.5% YoY surge.
- Retail turnover market share in equity segment: 26.8% in Q3FY24, a 529 basis point YoY improvement.
- Maintained No. 2 rank in Incremental NSE Active Clients, with a 14.8% share, growing 273 basis points in the quarter.
- Dinesh Thakkar, Chairman & Managing Director, emphasized a focus on offering clients suitable products seamlessly using data and technology.
- Continuous improvement and innovation in digital assets resulted in improved NPS, Playstore, and Appstore rankings.
- Despite strong Q3FY24 results, Angel One’s stock experienced a 9.60% decrease, opening at ₹3,500.
- Further decline to a two-week low of ₹3,392, reflecting a 12.5% decrease.
- Since listing in 2020, the stock delivered solid returns annually, including a 250% return in CY21 and a 166% gain in CY23.
- Angel One’s Q3 FY24 performance showcases resilience with strong financials, client growth, and market share expansion.
- Leadership’s focus on innovation positions the company as a key player in the financial market.
- Despite short-term market fluctuations, the consistent long-term track record suggests potential for sustained growth and value creation for shareholders.
Angel One, a prominent player in the financial market, faced a significant downturn in its stock value on Tuesday, triggered by the release of its Q3 FY24 financial results on Monday after market hours. The company reported a net profit of ₹260 crore for the quarter, witnessing a 14.50% quarter-on-quarter (QoQ) decline but showcasing a positive 14% year-on-year (YoY) improvement. Despite the dip in stock value, Angel One reported robust operational metrics, including substantial client additions and impressive growth in various financial parameters.
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Financial Highlights
In Q3FY24, Angel One’s total revenue from operations increased by 1% QoQ and an impressive 41% YoY, reaching ₹1,059 crore. The company achieved its highest-ever client addition during the quarter, welcoming 2.5 million clients. As of December 2023, the client base expanded to 19.5 million, marking a 14% increase QoQ and a substantial 55% growth YoY. Transaction volumes also surged, with the number of orders reaching 350 million, a remarkable 54% YoY increase.
The average daily turnover (ADTO) witnessed a significant jump to ₹36 trillion in Q3FY24, reflecting a 21.4% QoQ increase and an impressive 148.5% surge on a YoY basis. Angel One’s retail turnover market share in the overall equity segment stood at 26.8% in Q3FY24, showcasing a substantial 529 basis point improvement on a YoY basis, as reported in the company’s exchange filing.
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Market Share and Rankings
Angel One maintained its No. 2 rank in Incremental NSE Active Clients, with its share in NSE active clients growing to 14.8% in the quarter, marking a robust growth of 273 basis points. This underscores the company’s ability to attract and retain a significant share of active clients in the market.
In terms of market share, Angel One’s retail turnover in the equity segment exhibited notable improvement, reaching 26.8% in Q3FY24. This represents a commendable 529 basis point increase YoY, as per the company’s exchange filing. The company’s consistent focus on market share and client acquisition has positioned it as a key player in the financial landscape.
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Leadership Perspective
Dinesh Thakkar, Chairman & Managing Director of Angel One, commented on the company’s performance, stating, “Angel One has always focused its efforts to offer clients the most suitable products, in a seamless and efficient manner by harnessing the power of data and technology.” He emphasized the company’s commitment to innovation, continuous improvement, and enhancing the overall investing experience for clients. Thakkar highlighted the success of their digital assets, which have evolved with innovative features, contributing to improved rankings in NPS, Playstore, and Appstore.
Stock Market Dynamics
Despite posting strong financial results for the December-ending quarter, Angel One’s shares experienced a decline in the market. The stock opened at ₹3,500, reflecting a 9.60% decrease compared to the previous closing price of ₹3,875. Subsequently, the stock further declined, reaching a two-week low of ₹3,392, reflecting a notable 12.5% decrease.
However, it’s crucial to note that since its listing in 2020, Angel One’s shares have consistently delivered solid returns year after year. In CY21, the stock witnessed a multi-bagger return of 250%, followed by an 11% rally in the subsequent year. In CY23, it gained another 166%, and in the current month so far, it is up by 1.50%. This track record underscores the company’s ability to generate shareholder value over the years.
Conclusion
Angel One’s Q3 FY24 performance, marked by strong financial metrics, robust client acquisition, and impressive market share growth, reflects its resilience in the dynamic financial landscape. The leadership’s focus on innovation and continuous improvement, coupled with the company’s consistent financial success, positions Angel One as a key player in the financial market. While short-term market fluctuations may impact stock values, the company’s long-term track record suggests a potential for sustained growth and value creation for its shareholders. Investors may find value in exploring the underlying strengths and growth prospects of Angel One beyond the immediate market reactions.
