Angel One shares rally 5% on announcing Rs 26 dividend despite Q4 profit slump. Here's what brokerages say
Angel One
climbed as much as 5.4% on Monday to Rs 2,483.75 on the BSE after the stockbroker firm announced a final dividend of Rs 26 per share for FY25, despite posting a sharp decline in quarterly profit and revenue.
The broking firm's consolidated net profit for the January–March quarter fell 48.7% year-on-year to Rs 174.5 crore, while revenue declined 22.2% to Rs 1,056 crore. Operating margins also contracted to 32.5% from 39% in the same period a year ago, with EBITDA dropping 35.3% to Rs 342.8 crore.
ICICI Securities downgraded the stock to "Add" from "Buy" and cut its target price to Rs 2,500 from Rs 3,000, citing an expected earnings trough in the first half of FY26 due to weak market conditions and regulatory headwinds. The revised target implies a potential upside of about 0.7% from Monday's high.
The brokerage said it expects a rebound in Angel One's earnings with a projected PAT of Rs 8.3 billion in FY26, and Rs 12.5 billion in FY27. Over the longer term, ICICI Securities sees potential for significant recovery, projecting a PAT of Rs 15 billion by FY27E.
HDFC Securities, however, maintained a 'Buy' rating and set a target price of Rs 2,850, implying a potential upside of nearly 15% from current levels. 'Net revenue and PAT collapsed 31% and 60% versus Q2 FY25, while high acquisition costs and IPL-related spends also took a toll,' HDFC Securities said in a research note. 'We believe F&O activity has now stabilised and is likely to start improving on a sequential basis.'
Angel One's Q4 performance reflected the full impact of
regulatory changes
in the equity derivatives segment, with average daily orders declining to 5.3 million from a peak of 8.8 million in June 2024. F&O orders dropped 25.6% quarter-on-quarter, according to ICICI Securities.
The company also reported a 5.5% sequential drop in its
margin trading funding
(MTF) book to Rs 38.5 billion and a 10.2% fall in total borrowings to Rs 33.8 billion. Interest income declined 3.3% quarter-on-quarter to Rs 3.4 billion.
Despite the weak quarter, Angel One's leadership highlighted strong annual performance. Chairman and Managing Director Dinesh Thakkar said FY25 was a 'transformative year,' while Group CEO Ambarish Kenghe noted the company achieved record client additions and its highest-ever annual profit.
Angel One's board has recommended the Rs 26 per share final dividend, to be paid within 30 days of the Annual General Meeting. The stock remains down 29% from its 52-week high of Rs 3,502.60 hit in December.
Also read |
Angel One shares slump 6% after reporting 49% YoY drop in Q4 PAT
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
40 minutes ago
- Time of India
‘Green nod must for Manimajra housing'
Chandigarh: The environment department of Chandigarh administration has told the municipal corporation that the "user agency" is required to obtain a green clearance from the competent authority for the MC's Rs 700 crore housing project in Manimajra. The department has clarified that the said project falls under category 8(a) of the schedule to Environment Impact Assessment (EIA) notification, 2006, which makes it necessary for it to have a prior environmental clearance. The letter from the environment department to MC clearly states, "The township and area development projects covering an area of less than 50 hectares and/or built-up of more than 1,50,000 sqm fall under category 8(b) of the schedule to EIA notification, 2006, dated Sept 14, 2006, and rules made thereunder, require prior environmental clearance. For all such projects falling under category 8(a) & 8(b) of the schedule to EIA notification, 2006, dated Sept 14, 2006, and rules made thereunder, the user agency is required to obtain prior environmental clearance from the competent authority. " It adds, "The building and construction projects having built-up area less than 20,000 square metres and above 1,50,000 square metres fall under category 8(a) of the schedule to EIA, 2006, dated Sept 14, 2006, and rules made thereunder, require prior environmental clearance. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Could This NEW Collagen Blend Finally Reduce Your Cellulite? Vitauthority Learn More Undo Further, it is clarified that the term 'built-up area' for the purpose of this notification is the built-up or covered area on all floors put together, including its basement and other service areas, which are proposed in the building or construction projects." This development has come at a time when the cash-strapped MC was looking to dispose of the land as soon as possible to get money. However, with the UT administration now making it mandatory for the "user agency" to obtain environment clearance, the entire process is taking time. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
40 minutes ago
- Time of India
DU delays Veer Savarkar College opening as approval pending with ministry
New Delhi: Delhi University has ruled out holding a separate admission exercise for its newly built Veer Savarkar College, making the institution's launch entirely dependent on financial clearance from the education ministry. Vice chancellor Yogesh Singh told TOI that if approval does not come by end of the month, the college will not open this year and will instead take its first batch of students in 2026. The college will offer thousands of additional seats with a provision of reservation for local students — a first for the university. However, with the admission cycle for existing DU colleges nearing completion, officials said there is no scope for integrating a late entrant. "Unless the proposal is cleared this month, admissions will not happen this year," Singh said. The West Delhi project is part of DU's expansion plan to reach underserved areas of the capital and ease the pressure on its crowded North and South campuses. Prime Minister Narendra Modi laid the foundation stone in Jan for the campus, built at a cost over Rs 140 crore across an 18,816 square metres plot in Roshanpura. You Can Also Check: Delhi AQI | Weather in Delhi | Bank Holidays in Delhi | Public Holidays in Delhi | Gold Rates Today in Delhi | Silver Rates Today in Delhi The college will offer state-of-the-art facilities, laboratories, a central library and hostel facilities. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like American Investor Warren Buffett Recommends: 5 Books For Turning Your Life Around Blinkist: Warren Buffett's Reading List Undo A sports complex and auditorium are also planned as part of the project. The decision to provide a quota for local students, drawn from west Delhi districts, was taken to address long-standing demands from residents who often travel to far-off campuses for higher education. This provision makes Savarkar College the first DU institution to adopt such a model. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
an hour ago
- Time of India
Three arrested in Rs 353-crore investment scam in Vijayawada
Vijayawada: Police arrested three persons for their alleged role in a high-return investment scheme in Vijayawada. The action follows complaints lodged on April 14 by Narasaraopet residents Tripuramallu Srinivasa Rao and Kalavakollu Dilip Kumar, who said the operators induced investors with claims that their company UPIX Creations did animation work for Hollywood productions and was an internationally established firm, and promised huge returns on deposits. Tired of too many ads? go ad free now The victims are said to be have lost nearly Rs 353 crore in the alleged scam. Vijayawada police commissioner SV Rajashekara Babu said a special team arrested the prime accused from Vijayawada and two other persons from Guntur district. Police also seized items valued at about Rs 90 lakh, including 354 grams of gold, 21 kg of silver, a highend car, a BMW bike, and several computers. The accused's bank accounts have been frozen, and properties worth roughly Rs 23 crore linked to them are being processed for attachment. The arrested individuals were identified as Nidumolu Venkata Satya Lakshmi Kiran (33) from Satyanarayanapuram in Vijayawada, Mittapalli Rajendra Babu (63) and Mittapalli Rajeev Krishna (30), both from Krishna Nagar area in Guntur district. Main accused Kiran set up UPIX in 2014 and employed about 70 people. By 2018, he had linked up with associates and started soliciting deposits by promising to double investments in 12 months. Police said early 'returns' were showcased to attract more investors, who were brought in through relatives and friends, with commissions offered for mobilizing deposits. Funds were then diverted to personal accounts. While initial complaints referenced losses of around Rs 20 crore, police say the scale of the alleged fraud is far bigger. Investigators have identified about 183 victims from Narasaraopet, Guntur and Vijayawada who collectively deposited about Rs 353 crore in cash with the company. Tired of too many ads? go ad free now By the end of 2024, about Rs 194 crore of these deposits had been diverted into personal accounts of the accused, police said. The commissioner added that further investigation is underway to trace additional assets, verify the money trail, and identify any other persons who may have benefited from or facilitated the alleged scheme. Police have urged victims to approach Satyanarayanapuram police station with proof of their deposits to aid the probe under the Depositors Protection Act.
