Angel One shares gain after trading activity recovers in September, MTF book growth continues

Shares of Angel One Ltd.gained as much as 2.5% on Tuesday, October 6, in response to its monthly and quarterly business update that it reported earlier in the day.

The business update showed that although the sequential trend remained weak, there was a sharp increase in trading activity on a month-on-month basis in September.

Daily orders for Angel One rose by 12% month-on-month in September to 5.8 million from 5.21 million in August. The MTF book also grew by 6% from August to ₹7,871 crore.

However, Angel One's gross client addition slowed in September to 0.45 million, a decline of 20% from the previous month's figure of 0.57 million. Unique SIP registrations also slowed to 5,87,000, a decline of 19% from August's figure of 7,20,700.

Even as Angel One lost 240 basis points worth of market share within the commodity segment, it managed to partially offset that through a 80 basis points market share gain in F&O and 17 basis points gain in equity.

For the September quarter, although the exit turned out to be better for the stock, the quarter in itself was weak. Client base grew during the quarter to 4 crore, 3.6% higher on a sequential basis, while the MTF book was at a record high.

Average Daily Orders saw a decline in the September quarter by 16.7% on a sequential basis, while the unique MF SIP registrations were up 11.8%.

The company's Notional Average Daily Turnover stood at ₹44.88 lakh crore in September from ₹41.39 lakh crore in August. On a premium basis, the overall average daily turnover for Angel One stood at ₹2.79 lakh crore, down from the ₹3.15 lakh crore figure in August.

Shares of Angel One are trading 2% higher on Tuesday at ₹290.8. The stock is up 24% so far this year.