This listed discount broker's value has increased more than elevenfold since its debut in October 2020. There are four primary reasons behind its impressive growth.
Angel One embraced digital trading early. By 2019, it had completely digitised processes. This increased its operating profit margin by over 11 percentage points.
Its ROCE increased to 45 per cent in FY23. Moreover, its client acquisition run rate improved from a monthly average of nearly 22,000 in FY19 to nearly 4 lakh in FY23.
Angel One shifted focus to Tier 2/3 cities, acquiring 90% of clients there. This doubled its market share in the NSE active client base in the past 3 years.
Angel One's average daily turnover rose due to market upswing since Mar '20 and IPOs. It gained significant market share, especially in commodities.
5Paisa is Angel One's only closely listed peer. Its share of brokerage income to its topline is declining.
5Paisa's broking revenue has decreased from 83% in FY19 to 63% in FY23. Further, its retail market share has stagnated at around 3% since FY22.
Broking industry thrives in booms but struggles in downturns. Further, Angel One's P/E is 27, which is above its 3Y median of 20. The broker leads in consumer complaints.