Angel One rallies 8% on strong monthly update

Shares of Angel One rallied over 8 per cent during the early trade on Tuesday after the company provided an upbeat monthly update.

According to the BSE exchange filing, the discount brokerage registered a 77 per cent year-on-year rise in its client base at 11.57 million from 6.52 million in September 2021.

The number of orders jumped 66 per cent to 90.54 million in September 2022 on a yearly basis from 54.6 million in the same month the previous year.

Angel One’s average client funding book increased 9 per cent to Rs 15.39 billion in September 2022 on yearly basis from Rs 14.08 billion in September 2021.

However, gross client acquisition dipped marginally on a yearly basis to 0.39 million, whereas on a monthly basis it registered a fall of 12 per cent from 0.44 million.

Following the updates for September 2022, shares of Angel One zoomed over 8 per cent to Rs 1,475, before trading at Rs 1,456 at 11:20 am.

Brokerage firm’s overall average daily turnover (ATDO) shot up by 116 per cent led by a spike in futures and options (F&O) and commodity volumes to Rs 13,738 billion in September 2022 from to Rs 6,348 billion in September 2021.

On a monthly basis, ATDO jumped 11 per cent, thanks to a double-digit rise in the F&O segment. Commodity volumes rose 7 per cent, whereas cash volumes, which dropped on a yearly basis, were marginally up from August.

The participation of retailers increased 133 basis points (bps) to 21.6 per cent in September 2022, from 20.3 per cent in September 2021. Commodity trading volume saw the highest spike of 2,549 bps to 53.3 per cent from Rs 27.8 per cent during the period.

Haitong Securities has initiated coverage on Angel One with a buy rating and a target price of Rs 2,130, suggesting a 56 per cent upside from its previous close.

Angel one has been investing in enhancing its digital capabilities, said the brokerage. “Angel One is the first in the sector to implement Google Analytics 360 degree tools,” it added.

in its report maintained a target price of Rs 1,830 on the stock, citing strong business momentum in the sector.

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