Why Angel Broking Share Price is Falling

Shares of the largest listed retail stock broking house in India, Angel Broking (also known as Angel One), hit a fresh 52-week low on 1 March 2023. This comes despite the company gaining market share in January 2023.

The stock price has almost halved from its 52-week high of Rs 2,022, touched on 28 April 2022. So far, in 2023, Angel Broking has fallen over 18%.

Interestingly, this is not the first time that shares of Angel Broking have failed to generate satisfactory returns.

The stock tasted similar downside in 2022 too, with the company's share price dropping 14%.

The continuous downtrend has now intensified in 2023, and investors are worried.

Let's find out why Angel Broking is under pressure and what the company is doing to win back investors.

#1 CEO resignation

On 17 February 2023, the company announced the resignation of its chief executive officer, Narayan Gangadhar, with effect from 16 May 2023, due to personal reasons.

Following this development, shares of the company fell 2%.

A change in guard may affect the corporate strategy of companies, which may affect sales volumes and profits.

The departure of a CEO can cause uncertainty among investors, employees, and other stakeholders, potentially leading to a decrease in the company's stock price and overall performance. This is what usually happens but there's no science to it.

However, if the CEO's resignation is followed by a smooth transition to a new leader, the company may be able to quickly adapt and continue its operations without significant disruption.

To reassure shareholders against these worries, Angel Broking informed that Gangadhar's resignation would not impact any part of the business as the company has been strengthening its core management team and will complete the transition to founder & MD Dinesh Thakkar over the next three months.

#2 Increasing competition

Now the recent fall may be due to change in guard, but Angel Broking has been facing competition from other players since a long time.

Angel Broking was also underperforming in 2022 due to declining customer acquisition trend since October 2022.

The company is facing pressure to acquire new customers due to rising market volatility and increasing competition.

However, signs of revival is visible.... The company registered a 20% YoY jump in customer acquisition in January 2023 and is now back at September 2022 levels.

This was due to Angel Broking's improving market shares across all segments, such as equity, futures and options, and cash, in January 2023.

What next?

For the upcoming quarters, the company plans to aggressively focus on gaining market share, across multiple product offerings, with the successful rollout and migration of the super-app and receipt of in-principal approval for setting up the AMC business.

The company plans to scale up its current technology and product stack to make it future ready for the super-app.

On 9 February 2023, it received in-principal approval from the market regulator for sponsoring a mutual fund.

To operationalise this AMC (Asset Management Company) business, the company looks forward to submitting the final plan to the watchdog in the next six months.

It is also focusing on robust marketing plans to increase its customer consistently by 0.3 million (m) to 0.4 m.

For the financial year 2023, the company has declared the total dividend of Rs 26.3 per share.

How shares of Angel Broking have performed recently

Angel Broking shares have declined by more than 14% in the last one month.

And in 2023 so far, the shares have eroded over 18%. After falling to its 52-week low on Wednesday this week, the stock is up over 10% today and has at least recovered last week's losses.

Angel Broking touched its 52-week high of Rs 2,022 on 29 April 2022 and its 52-week low of Rs 999 on 1 March 2023.

About Angel Broking

Angel Broking, now known as Angel one, is the largest independent listed full-service retail broking house in India, with more than 9.2 m clients and 3.7 m active clients on NSE.

The company is a member of the National Stock Exchange of India Limited (NSE), Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and many more.

Presently the company is engaged in the business of stock currency and commodity broking, providing margin trading facility, depository services, and distribution of mutual funds to its clients and earns brokerage, fees, commission, and interest income thereon.

It has also been providing portfolio management services (PMS). Their broking services include equity, commodity, and depository operations.

For more details, see the Angel Broking company fact sheet and quarterly results on our website.

You can also compare Angel Broking with its peers on our website:

Angel Broking vs 5Paisa Capital

Angel Broking vs Aditya Birla Money

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