Angel One, formerly known as Angel Broking, has been experiencing a significant downturn in its share price, marking the third consecutive day of decline as of September 9, 2024. Over the past three days, the company’s stock has plummeted approximately 6%, with a notable drop of 4% realized today alone. Currently, the shares are trading at Rs 2396.90 on the Bombay Stock Exchange (BSE), resulting in a decreased market capitalization of Rs 21,605 crore. This decline is stark when compared to the all-time high of Rs 3900.35 the shares achieved on January 9, 2024, reflecting a substantial drop of about 40% from that peak.
Reasons Behind the Decline
The recent fall in Angel One’s stock price can be attributed to several key factors influencing the company’s performance:
- In August 2024, Angel One’s gross client acquisition experienced a sharp decline of 21.1% month-on-month, totaling ₹9 lakh. However, when viewed on a yearly basis, there’s a 23.3% growth, indicating resilience in a long-term framework.
- The company’s client base stood at 2.67 crore in August, which marks a 3.3% growth month-on-month and an impressive 62.9% growth year-on-year.
- Despite a rising average funding book, which increased 3.2% month-on-month and 169.6% year-on-year to ₹3,850 crore, the brokerage’s overall order volumes took a hit. They reached 161.2 million in August, recording a decline of 5.9% from the previous month and 40.8% year-on-year.
Market Performance Statistics
| Metric | Current Value | Change (Month-on-Month) | Change (Year-on-Year) |
|---|---|---|---|
| Gross Client Acquisition | ₹9 lakh | -21.1% | +23.3% |
| Total Client Base | 2.67 crore | +3.3% | +62.9% |
| Order Volumes | 161.2 million | -5.9% | -40.8% |
| F&O Market Share | 20.7% | Flat | Flat |
| Cash Segment Market Share | 17.4% | -10 bps | N/A |
Technical Analysis of Angel One Shares
From a technical perspective, Angel One closed above its 50-day moving average on Monday, which offers some short-term optimism. However, it is currently trading below the 100, 150, and 200-day moving averages. The stock’s Relative Strength Index (RSI) stands at 48.2, suggesting it is in a neutral position—not overbought or oversold. A reading above 70 would indicate overbought conditions, while below 30 suggests oversold conditions.
Historical Performance
Angel One is notable for being one of the few IPOs that initially listed below its issue price, yet has thrived in the stock market. The stock debuted at ₹273, which was below the IPO price of ₹306, but has since skyrocketed nearly 700%, showcasing a remarkable turnaround and ensuring it remains a strong player in the competitive brokerage market.
Despite the recent correction in stock price, Angel One remains one of the better investments over the past month, boasting a 10% increase. Investors and market analysts continue to monitor the company’s strategies moving forward, especially in light of fluctuating market conditions and client acquisition trends.
