Tue Oct 15 08:04:54 UTC 2024: ## Angel One Stock Surges 11% on Strong Q2 Results, Profit Beat

**MUMBAI, INDIA** – Shares of Angel One Ltd. soared by over 11% on Tuesday, fueled by a strong performance in the September quarter. The stock reached a high of Rs 3,011.65, reducing its year-to-date losses to 17%. This surge follows the company’s announcement of a 39.14% year-on-year rise in profit, reaching Rs 423 crore.

The positive results were attributed to improved operational efficiency, exceeding analysts’ expectations by 5%. Growth in the Futures & Options (F&O) segment, up 23% year-on-year, and the cash segment, rising 52% year-on-year, significantly contributed to the 29% year-on-year growth in gross broking business.

Furthermore, Net Interest Income saw a robust 83% year-on-year increase, reaching Rs 2.8 billion, in line with expectations. The average client funding book also witnessed a substantial rise, reaching Rs 3,890 crore compared to Rs 1410 crore in the same period last year.

According to MOFSL, Angel One’s ability to maintain profitability despite new regulations demonstrates its strategic flexibility. While the upcoming F&O regulations are anticipated to impact trading volumes, Angel One is expected to adjust its pricing strategy to mitigate the impact. The company remains confident about restoring margins to 45-50% over the long term.

The brokerage house MOFSL has maintained a ‘Buy’ rating on the stock ahead of today’s concall, but will review its estimates post the discussion. Angel One also plans to leverage new businesses like loan distribution, fixed deposits, wealth management, and asset management companies (AMCs) for future growth.

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