Angel One Ltd Faces Downturn as Monthly Orders Drop by Over 7%

Angel One Ltd, the prominent brokerage firm, experienced a challenging month as it witnessed a notable decline in its total number of orders. In October, the company reported a 7.8% decrease in orders, with the total number dropping to ₹10.59 crore from ₹11.49 crore in September. Despite this setback, on a yearly basis, the number of orders surged impressively by 52.5%, showing resilience in the face of market fluctuations.

Additionally, Angel One Ltd disclosed a 4.2% growth in its client base, reaching 1.77 crore in October 2023, reflecting the company’s continuous efforts to expand its customer network. On an annual basis, the client base witnessed a remarkable 49.6% growth compared to October 2022, highlighting the brokerage’s sustained progress in client acquisition.

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Despite the decline in client acquisition, Angel One Ltd reported a 5.7% reduction in gross client acquisition on a quarterly basis, indicating a shift in market dynamics during this period. However, the company’s Average Client Funding Book experienced a positive uptrend, rising by 16.3% to ₹1884 crore in October, showcasing increased financial activities within the platform.

In terms of trading volumes, the Average Daily Orders declined by 7.8% month-on-month to 53 lakh in October from 57.5 lakh in September. However, Angel One Ltd’s overall average daily turnover only witnessed a marginal drop of 2.9%, reaching ₹31,537 billion in October compared to ₹32,493 billion in September. Notably, there was a significant 127.1% expansion in daily turnover when compared to October 2022.

Despite a 13 basis point drop in its retail turnover market share to 26.5% in October, Angel One Ltd displayed resilience and growth in other segments, indicating the brokerage’s ability to adapt to changing market conditions. At the close of the trading day, Angel One shares were trading 2.59% lower at ₹2,559.00 apiece on the NSE, reflecting the impact of the monthly business update on investor sentiment.