Angel Broking up 29% in 2 days post Q2 results; trades above issue price

Stock brokers-1 ((Photo credit: Kamlesh Pednekar)
Shares of Angel Broking traded higher for the second straight day, up 8 per cent at Rs 321 - its highest level since listing earlier this month. The stock bounced back 15 per cent from day’s low of Rs 279 on the BSE on Wednesday on heavy volumes. In comparison, the S&P BSE Sensex was down 1.4 per cent at 39,940 points at 02:26 pm. The trading volumes on the counter jumped over four-fold with a combined 4.93 million shares changing hands on the NSE and BSE.

In the past two trading days, the stock of broking firm has rallied 29 per cent after the company reported the highest-ever quarterly profit after tax (PAT) at Rs 74.6 crore in the September quarter (Q2FY21). It had posted profit of Rs 48.3 crore in June quarter of the current fiscal (Q1FY21).

A sharp rally has seen the counter trade above its issue price of Rs 306 for the first time ever since listing on bourses on October 5, 2020. The stock had made a weak debut and listed at Rs 275 on the BSE, a 10 per cent discount against the issue price.

Impressive numbers

In Q2FY21, Angel Broking said its total income grew 29 per cent quarter on quarter (QoQ) at Rs 318 crore against Rs 247 crore in previous quarter. Average Daily Turnover (ADTO) has grown by 107 per cent QoQ to Rs 1,281 billion in Q2FY21, it said. Earnings before depreciation and taxes (EBDT) margin improved 629 basis points QoQ at 49.3 per cent in Q2FY21 from 43.0 per cent in Q1FY21. The asset light model backed by digital first approach has led to operating leverage benefits.

The board has declared interim dividend of Rs 4.15 per share. The company fixed November 3, 2020 as record date for interim dividend and same shall be paid on and from November 20, 2020.

Angel Broking said it aims to become the largest retail broking firm in India, both by broking revenue and active clients. The company continues to focus on acquiring and retaining clients, product innovation and leveraging our web and digital broking platforms.

The management said it continues to maintain high growth and profitability by increasing scope and intensity of company’s existing investment advisory business. The company continues to engage with third party providers to widen the products bouquet, it said.

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