Angel One: Imagine a bustling marketplace, not for fruits and vegetables, but for a different kind of treasure, the ownership in companies. This is the stock market, a dynamic space where businesses raise capital and ambitious individuals chase the potential for growth. But how does one participate in this complex ecosystem? Enter the realm of brokerage firms, your trusted guides in this financial odyssey.
Think of a brokerage firm in the investment world, they provide a platform where you can buy and sell these pieces of ownership called stocks. They handle the nitty gritty of executing your trades, ensuring your orders reach the right buyers or sellers. But their role goes beyond mere transactions. Brokerage firms offer valuable insights and research to help you make informed decisions.
They can be your educators, explaining market trends and the intricacies of different investment options. In essence, a good brokerage firm empowers you to navigate the exciting, yet sometimes intimidating, world of the stock market.
This is where Angel one steps in, they act as a bridge between the individual and the world of investing. Angel one recognised the potential for a more inclusive investment landscape. They meticulously crafted user friendly platforms, offered a variety of investment options and prioritized investor education.
By demystifying the stock market, Angel one empowered countless individuals to take control of their financial future. Come let’s learn more about the industry and company.
Industry Overview Of Angel One
The Indian capital markets have witnessed a paradigm shift in recent years, driven by the rising participation of retail investors. This trend has been facilitated by the increasing adoption of digital broking platforms, which offer a seamless and convenient experience for investors.
The Indian broking industry has consolidated towards digital brokers, who leverage technology to provide services at competitive fees and superior client experience. The growth of retail investors has been fueled by several factors, including the rise of internet and smartphone penetration beyond urban centers, the popularity of investment apps, and the growing awareness of financial instruments.
Retail investors now have access to a wide range of investment options, including equities, mutual funds, and derivative products, enabling them to build diversified portfolios.
The Indian government and regulatory bodies have played a crucial role in fostering a secure and investor-friendly environment. Initiatives such as the introduction of the pledge mechanism and the implementation of peak margin norms have aimed to protect the interests of retail investors, further boosting their confidence in the capital markets.
The Indian stock market has remained resilient, sustaining its strong performance despite various challenges. The robust performance reflects the strong earning profile of Indian corporates and investors’ belief in India’s growth story. The growth in Systematic Investment Plans (SIPs) and the surge in new demat account openings are testament to the growing interest of retail investors in the equity markets.
Company Overview Of Angel One
Angel one started its journey as a wealth management, retail and corporate broking firm by Dhinesh Thakkar. It was incorporated as Angel Broking Ltd in 1996. The company is headquartered in Mumbai, India. In 1998, Angel Capital and Debt Market Ltd the subsidiary of Angel one gained membership of the National Stock Exchange as a legal entity.
In 2004, Angel one expanded its offering by opening a commodity broking division. During 2018, Angel Broking Ltd converted itself into a public limited company by getting a certificate of incorporation from the Registrar of companies and changed its name to Angel one Limited
Currently, the company is in the business of brokering stocks, currencies, and commodities. It also offers its clients depository services, mutual fund distribution, and margin trading capabilities. From these activities, the company receives money from brokerage, fees, commissions, and interest.
Angel One has a total client base of 22.2 Mn and it holds 23.1% share in India’s incremental Demat accounts. FIIs and DIIs currently hold 17.95% and 13.59% shares of Angel one. The share price is currently trading in the range of 2400-2600.
Financials Of Angel One
In the FY 2023 Angel One saw an increase in revenue, surging by 31.01% to reach 3,001.59 crore rupees as opposed to 2,291.11 crore rupees in FY 2022. Analysing a span of three years, encompassing FY 2021 to FY 2023, the company displayed a Compounded annual growth rate (CAGR) of 60.60% in revenue.
Future Plans Of Angel One
Launch Of Asset Management Company (AMC) And Wealth Management Business
Angel one sees a huge opportunity in the AMC space to complement their broking business. Currently they have on boarded the core leadership team and they are in the process of getting regulatory approvals to launch the businesses. The company is planning to leverage technology integration with their domain expertise to enhance productivity and reach.
Fixed Income And Lending Products
Angel one is planning to launch lending and fixed income products on their platform after completing its beta testing phase. Fixed deposits and corporate bond offerings are expected to be launched in the next quarter through partnerships.
Focus On Broking Business Scale
The company is investing in brand building through 5 year IPL sponsorship for its visibility. It aims to acquire 35% of the market share through new client acquisitions. They are also focused on offering multiple services to customers through their “Super App” platform to customer engagement and lifetime value.
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