In Wednesday's trading session on BSE, the stock of Angel One, an Indian discount broking firm, breached the Rs 3,000 level for the first time, as it recorded a fresh all-time high with a market capitalisation of more than Rs 25,000 crore. After scaling new heights on Thursday, the stock's year-to-date rise swelled to over 127 per cent. 

So what's driving the rally? 

Strong Q2 performance 

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In the July–September quarter (Q2FY24), Angel One posted healthy numbers. The company registered a consolidated net profit of Rs 305 crore for the quarter ended September 30, 2023, as against a consolidated net profit of Rs 214 crore for the corresponding period a year ago, which implies over 42 per cent rise in profit. 

Its quarterly revenue grew 40.7 per cent on a year-on-year basis to Rs 1,048 crore, according to a regulatory filing.  

Angel One registered Rs 443 crore in earnings before investment, tax, depreciation, and amortisation (EBITDA) for the quarter under review, marking a jump of 40.1 per cent compared with the year-ago period.  

October business update 

The number of orders in October increased from 69.42 crore to 10.59 crore, up 52.5 per cent YoY. 

Average daily orders increased from 38.6 lakh to 53 lakh in October, up 37.3 per cent YoY. 

Increase in client base

According to Zee Business research in Q2, the company increased its client base YoY by 47.6 per cent and 13.3 per cent quarter-on-quarter (QoQ).

Analysts' view 

Jigar S Patel - Senior Manager - Technical Research Analyst, Anand Rathi Shares and Stock Brokers advised to avoid fresh longs. 

"Since the last 8–9 months, the said counter has witnessed a stellar bull run from 1010 until 3090, which comes around a 205 per cent return. At the current juncture, price action is trading way above 200 DEMA, which comes around 1754 levels. Having said that, we also have bear divergence popping up on the daily RSI, which might halt the ongoing bull run in the coming session. Avoid fresh longs and book profit in the zone of 2900–3050," said Patel.

On the other hand, Vaibhav Kaushik, Research Analyst, GCL Broking suggested buying on dips.

"Stock has a strong support near 2850. On the other hand, the stock has resistance near 3270. So, buying on dips is advisable for the target of Rs 3,260 keeping the stop loss at Rs 2820," said Kaushik.

Angel One's performance since its initial public offer (IPO)

The stock was listed in October 2020 at a 10 per cent discount to Rs 275 and the issue price was Rs 306. 

Angel One shares are currently trading at Rs 2995.5 apiece. In three years, the stock has risen over 10 times against its listing price and over nine times its issue price. 

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