Angel One Shares Fall By 7%: Effects of F&O Regulations

Stock Market News

On January 14, the shares of Angel One Limited fell significantly by 7% to a new low. Currently the stock is trading at BSE at a price of ₹2369.75 which marks a decline of approximately 3.04%. This dip is related to the new f&o regulations and how or why this effect led to a dip in the quarterly result of the company. As a result, investors are pulling out their investments from the company and have sold their shares – which has reduced the market cap to ₹21,387 crore. The stock had a 52-week high at ₹3893.45 and a low of ₹2027.25.

Taking A Deeper Dive Into Angel One’s Results

For the quarter ending in December, Angel One’s revenue is estimated to have decreased by 17% compared to the previous quarter with a net income of ₹1262 crore. The company’s EBITDA also saw a decline as it fell by 26% from the September quarter, resulting in ₹496 crore. EBITDA margin also dipped to 39.3% or decreased by 500 basis points from the previous quarter’s 44.4%. Net income was also affected as it fell by 34% to rest at ₹281 crore.

The revenue from the broking segment has decreased by 10%, amounting to ₹624 crore. This revenue is anticipated to go down in the near future due to the new F&O rules combined with the broad negative market feeling towards cash brokerage. Increased operating costs placed additional hardship on the company’s margins and profitability. The firm’s cost-to-income ratio went up from 55.65% in September to 60.71% in December.

Dividend Information by Angel One

The Board of Directors of Angel One has declared a dividend of ₹11 per equity share amounting to approximately ₹99.3 crore which is proposed to be paid to the eligible shareholders. This dividend is about 35.3 percent of the consolidated PAT for the quarter.

Statement from Angel One Chairman

Dinesh Thakkar, the Chairman and Managing Director of Angel One, said, “The capital market of India is always growing which shows that retail investors are increasingly confident. These prospects along with the changing regulatory framework have instilled customer confidence for continued engagement.”

He further stated, “Although some of the newly brought in regulations have adversely affected the entire sector for this quarter, we believe the new client onboarding targets we set for ourselves in combination with the current level of client activity will drive growth for us again in future quarters.”

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Disclaimer

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