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Target: ₹2,351
CMP: ₹2,085.35
Angel One reported strong growth of 11 per cent on a q-o-q and 64 per cent on a y-o-y basis in the total client base during the quarter, outperforming the industry, which grew by about 8 per cent on a q-o-q and 43 per cent on a y-o-y basis. During the quarter, the broking business revenue remained flat due to a decline of 2 per cent in the total number of trades on a q-o-q basis.
While interest income significantly increased by 19 per cent on a q-o-q basis, led by a 92 per cent rise in the MTF book. However, the EBTDA margin contracted by 539 bps on a q-o-q and 773 bps on a y-o-y basis. This is due to a significant increase in upfront costs related to IPL sponsorship, increase in employee costs and ESOPs. The Company continues to gain market share in NSE’s active client base, up from 15 per cent in Q4-FY24 to 15.2 per cent in Q1-FY25.
Though AOL showcased a strong performance in client additions, however, the total number of trades declined by 2 per cent on a q-o-q basis. The company is venturing into new areas such as asset management, wealth management, and distribution, but the execution of these initiatives is still pending.
Additionally, we expect the cost to remain elevated as the Company is investing in new business verticals and employee addition.
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