Angel One gains nearly 5% following positive Q4 earnings

Shares of Angel One Ltd gained nearly 5% on Tuesday as a result of the company's strong fourth-quarter (Q4FY23) earnings.

The company for the quarter ended March reported a 31% growth in year-on-year consolidated net profit at ₹267 crore. On a sequential basis, the net profit rose 17%.

The revenue from operations for Q4FY23 was up 21.2% to ₹826 crore as compared to ₹681 crore in the previous quarter last year. The stock broking company reported an earnings before interest, taxes, depreciation, and amortisation (EBITDA) at ₹370 crore.

In the fourth quarter, the company's entire client base increased by 49% year over year and 10% quarter over quarter to reach 13.8 million, while gross client acquisitions totaled 1.3 million. Its demat account share in India increased by 48 basis points to 12% sequentially.

A final dividend payout of ₹4 per equity share with a face value of ₹10 was announced by the company's board of directors on Monday. This represents a 40% dividend for the current fiscal year.

"Angel One is a perfect play on the financialisation of savings and digitisation. It demonstrated a strong performance in 4QFY23 amid volatile market conditions. 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 price after the concall on April 18," said brokerage Motilal Oswal in its report.

On Tuesday, the stock hit an intraday high of ₹1,358.85 and low of ₹1,311. Over a month's period, the stock gained 20.7%. However, the stock price fell 21% and underperformed its sector by 32.9% in the past year.

Share of the company were trading at high day volume of 1.8 million. According to analysts, the short term trend is positive as good volumes have been witnessed along with the price upmove.

According to Mintgenie poll, 7 analysts on an average recommend 'strong buy' for the stock.