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Angel One (previously known as Angel Broking) surged over 370 percent till date since listing at a 10 percent discount against its issue price in October 2020. Let’s understand the reasons behind this steep rise.

Brokerage firm Angel One has delivered robust returns to its investors since listing at a discount in October 2020. The stock listed at a 10 percent discount of 275 on October 5, 2020, as against its issue price of 306.

Since then, the stock has surged over four fold. It currently trades around 1,300 per share, up as much as 372 percent as against its listing price of 275. It has also jumped 325 percent versus its issue price of 306 during the IPO.

Since listing at a discont, the stock consolidated around 300-350 in the next 6 months till April 2021 before starting on an uptrend. Since then, it has been on a consintous rise till now.

Reasons behind the surge

As per analysts, the rally in the stock price of the firm comes on the back of its digitisation from a traditional broker earlier which led to a significant increase in its client base. It also led to a reduction in branch costs resulting in lower brokerage charges.

Just between April-September 2021, the brokerage has added 23.8 lakh clients taking the overall customer base to 65.2 lakh.

Angel One is the largest publicly traded retail broking firm in India. In September 2021, the brokerage added 3.9 lakh new customers, making it the sixth consecutive month of nearly 4 lakh client additions.

The company has also reported strong earnings in the latest quarter, in tandem with the stock price rally. In the September 2021 quarter, the company posted an 80.2 percent YoY jump in consolidated net profit to 134.2 crore versus 74.48 crore in the year ago quarter. Its net sales also rose 70 percent to 527 crore for the quarter under review versus 309 crore in the year ago quarter.

Angel Broking changed its name to Angel One in September 2021. It is a financial services company that provides broking services, advisory services, margin funding, etc to its clients. The company went public after launching a 600-crore IPO in September 2020. The offer was open for subscription between September 22-24 and was subscribed nearly 4 times in this period.

The firm extensively uses artificial intelligence and machine learnings in order to create a superior digital brokerage experience. It has a number of digital properties like Angel Broking Mobile App, Angel BEE Mobile App, Smart Money, ARQ Prime, SmartAPI, as well as a Smart Store to provide the best digital experience as well as tools to its clients.

Going ahead, most analysts suggest holding the stock at the current levels and see further upside in the next one year on the back of digitisation in the firm as well as rising client additions.

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