Upcoming Dividends: NBFC Stock At New High, Gains 200% In 1-Year; Q3, Dividends In Focus, Sets Record Date

Leading stock broker, Angel One witnesses a huge bandwagon of bulls as traders await its Q3 earnings and upcoming dividends payout for FY24. On Monday, the multi-bagger NBFC touched a new 52-week high of Rs 3,884.95 apiece, while its 1-year upside has now stretched to a whopping over 200%. Among the major and most-awaited dividends in January 2024, Angel One is one of them. The company's outlook is healthy.

At the time of writing, Angel One share price traded at Rs 3,872.70 apiece, up by 3.4% with a market cap of Rs 32,511.49 crore. The stock is trading near its new 52-week high of Rs 3,884.95 apiece which was recorded at the opening bell.

In a year, Angel One share price has risen by over 200%. While from its 52-week low of Rs 1,000 apiece, Angel One stock has skyrocketed by a breathtaking 289% so far.

As per the regulatory filing, Angel One's board of directors are scheduled to meet on Monday, January 15 to consider and approve the unaudited standalone and consolidated financial results (with Limited Review) for the quarter and nine months ended December 31, 2023.

Also, the board will be considering, approving and declaring a third interim dividend, if any, for the current fiscal. For this, the company has fixed January 23, as the record date for reckoning the shareholders who shall be entitled to receive the interim dividend.

Angel One will also turn ex-dividend on January 23.

In 2023, Angel One paid a series of dividends, totalling to 451.5% amounting to Rs 45.15 per share.

On the current market price, the stock has a dividend yield of 1.03%.

In the latest development, Angel One announced the joining of Anuprita Daga as its Group CISO (Chief Information Security Officer). Angel One considers information security as a backbone of its operations, leveraging technology and data-driven approaches, to deliver unparalleled solutions to its clients.

Further, Angel One has announced its monthly performance. In December 2023, the company's client base rose by 55.5% YoY to 19.45 million. Additionally, the company's average fund booking stood at Rs 18.38 billion, up by 33.7% YoY. And number of orders climbed by 59.2% to 137.24 million in the month. Meanwhile, overall business was at Rs 42,014 billion, skyrocketing by a whopping 156.2% YoY.

In its case study on Angel One, Stock Edge in its latest research report said, "As the company is in a growth phase, so the management guided that they would continue to invest in people, technology and
hardware. The company aims to reach 18-20% market share of NSE Active clients and become a dominant player. This is driven by a change in the customer acquisition strategy from focusing on breakeven within 6 months to the lifetime value of customers. The focus will be on
penetrating markets selectively."

Moreover, the brokerage believes that the rising interest rates scenario has affected customer preference for direct equity, which is reflected in the slowing count of customer additions. With upcoming of the upcoming SEBI framework regarding upstreaming of clients' funds, the management guided for increased working capital requirement for the company, going forward.

Also, it cited that the management guided that they are not focused on increasing margin funding book. However, this book may increase proportionately with a rally in mid-caps and small-caps but would not witness linear growth.

"The company is planning to launch third-party lending products like personal loans, unsecured consumer personal loans, etc where they would act as a distributor. They would partner with NBFC's for distributing these loans and provide them with analytics for better underwriting and collection process," the brokerage's note said.

Lastly, the brokerage said that the company also plans to open a wealth management business with a target audience having a ticket size of Rs 50 lakh to Rs 1 cr whereas the industry is focused more on Rs 5 cr to ₹10 cr clients.

As per Trendlyne, the consensus recommendation from 6 analysts for Angel One is BUY. EPS is expected to grow by 26.3% in FY24.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.