On Tuesday, shares of 5Paisa Capital were stuck in 5 percent upper circuit at Rs 324.60 after the company reported a net profit of Rs 3.74 crore for the June-ended quarter when compared to Rs 55 lakh loss in the same period a year ago.
For the first time since its launch in March 2016, 5Paisa reported a quarterly profit. The discount broking company's total consolidated income was up by 85 percent to Rs 42.44 crore in the June-ended quarter, backed by improved trading activity and carefully curtailed expense growth.
The management said that in the April-June 2020 period it made its highest quarterly acquisition of over 1.6 lakh customers. Several news reports suggest that amid the pandemic and consequent work-from-home, millennials have taken interest in the capital markets in India as well as the US. The management is optimistic that the company is entering a new era of investing and incredible growth in coming quarters.
5paisa Capital offers financial products through its online technology platform and mobile applications. It is registered with the Securities and Exchange Board of India (Sebi) as a stockbroker, depository participant and research analyst, and with the Association of Mutual Funds in India (Amfi) as a mutual fund distributor.
With its low-cost service, its target audience is retail investors and high volume traders who prefer DIY (Do-it-Yourself) services.