Angel One Shares Plummet: Client Acquisitions Take a Steep Dive in June
Angel One shares tumble over 7% in June as gross client acquisitions plunge by 41.5% year-on-year. Discover how this impacts the brokerage firm and the wider Indian capital markets.
Angel One Shares Plummet: Client Acquisitions Take a Steep Dive in June
Shares of Angel One, a prominent brokerage firm, took a significant hit on Friday, dropping by over 7% after the company revealed a substantial decline in its gross client acquisitions for June. This downturn has raised eyebrows across the financial sector, impacting other capital market firms as well.
According to the company's recent exchange filing, gross client acquisition plummeted by 41.5% year-on-year, settling at 5.5 lakh clients in June. While this represents a notable annual drop, there was a slight rebound on a month-on-month basis, with a 9.3% increase from May.
Despite the recent dip in new clients, Angel One's total client base still stands strong at 3.25 crore as of June. This marks an impressive 31.3% increase from the previous year and a modest 1.6% rise from the preceding month, indicating continued overall growth.
The market reacted swiftly to the news. Angel One's stock plunged as much as 7.33% to an intraday low of Rs 2,734.40 on the National Stock Exchange (NSE). After opening lower by 2.22%, the stock managed to trim some losses, trading around Rs 2,791 by 11 AM, down 5.41%.
Beyond client acquisitions, other key metrics also showed a mixed bag. The company reported average daily orders of 5.47 million in June, a decline from 8.84 million a year ago and slightly lower than May's 5.79 million. Total orders handled during the month stood at 114.95 million, marking a 31.6% drop from 168.03 million in the same period last year.
On a brighter note, Angel One's average client funding book saw robust growth, increasing by 55% year-on-year and 17.5% month-on-month to reach Rs 4,708 crore in June. However, the firm’s average daily turnover on a notional basis decreased by 23.5% year-on-year and 2.3% sequentially, settling at approximately Rs 35 lakh crore. Specifically, turnover in the crucial futures and options segment fell by 24.6% to Rs 34.02 lakh crore from Rs 45.11 lakh crore a year ago.
The broader capital markets also felt the ripple effect on Friday. The Nifty Capital Markets index was down 2%, with Angel One, alongside BSE and CDSL, among the top losers. This decline was further fueled by market regulator SEBI's decision to bar Jane Street from trading in Indian equity markets, adding to the prevailing cautious sentiment.
