Angel Broking shares surge 20% as rising awareness among investors turns in favour of the stock broker
Angel Brokingadded 12 lakh new clients in Apr-Jun as compared to 9.6 lakh in Jan-Mar.
- The broking house has given ₹5.15 dividend per share in the first quarter of this financial year.
- Average monthly net broking income rose to ₹68.5 crore in June quarter from ₹33.9 crore in the corresponding quarter last year.
AdvertisementAwareness about investment, savings, insurance and wealth creation seems to have peaked during the pandemic and that is being reflected in India’s equity markets as well.
The increase in stock market investment has benefitted traditional stock broking companies like Angel Broking, which added 12 lakh new clients between April and June as against 9.6 lakh it added during this time last year.
“It is heartening to see that we continue to sustain high growth across parameters, even on a large base, with a majority of incremental clients coming from tier 2, 3 and beyond cities. As Bharat opens up more aggressively, to the idea of systematic wealth creation, we shall witness a massive growth opportunity unfolding, for the fintech industry,” said Narayan Gangadhar, chief executive officer of Angel Broking in a press note.
Investors cheered this news on Dalal Street as the shares of the company surged 20% to ₹1,272 at 1:08 p.m., on Friday, July 16.
Mirroring these gains, shares of peer Motilal Oswal also surged 13% to ₹1,149 as of 1:08 p.m.
The rising number of investors under Angel Broking has accelerated the company’s net broking income. Out of the ₹474 crore of total income, 68% of income -- ₹322 crore -- has come from broking.
The broking house has also announced a dividend of ₹5.15 per share.
The broking house also reported a massive jump of over 200% in net profit. Its revenue from operations increased to ₹457 crore in June quarter from ₹236 crore last year.
Angel Broking is among the top five stock brokers -- others being Zerodha, Upstox, ICICI Securities and HDFC securities -- with the highest market share. According to research platform Trade Brains, it holds a market share of 8.28%.
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