Angel One Shares Slump 13% After Sequential Decline In Q3 Profit, Ebitda
The company's consolidated net profit fell 14.5% quarter-on-quarter to Rs 260.30 crore in the quarter ended December, according to an exchange filing.
Shares of Angel One Ltd. slumped 13% on Tuesday after its third-quarter profit declined sequentially due to higher operating expenses.
The company's consolidated net profit fell 14.5% quarter-on-quarter to Rs 260.30 crore in the quarter ended December, according to an exchange filing. Ebitda declined 13% to Rs 364.1 crore during the same period.
Higher operating expenses due to a larger client base, growth in cash orders, and modifications in the intraday tariff structure led to the sequential fall, the company said in its investor presentation.
Angel One's gross client acquisition increased 16.2% quarter-on-quarter.
However, despite a sequential fall, the company reported 15.92% annual growth in its net profit.
"The cost-to-income ratio increased significantly to 56% (vs. our estimate of 48.8%), an increase of 730 basis points sequentially. Expenses came in 13% higher than our estimates. This is because admin and other expenses came in 17% higher than expectations," said Motilal Oswal.
The brokerage said it will review the target price of the stock while maintaining a 'buy' rating on Angel One.
Angel One Q3 Results Key Highlights (QoQ)
Total Income up 1% at Rs 1,060.8 crore.
Net profit down 14.5% at Rs Rs 260.30 crore.
Shares of Angel One slumped 13% to Rs 3,371.60 apiece. It was trading 11.98% lower at Rs 3,411 apiece as of 11:03 a.m. This compares to a 0.08% advance in the NSE Nifty 50 Index.
It has risen 159.88% in 12 months. Total traded volume so far in the day stood at 4.6 times its 30-day average. The relative strength index was at 48.38.
All the nine analysts tracking the company maintain a 'buy' rating on the stock, according to Bloomberg data. The average 12-month consensus price target implies a downside of 13%.
