Rs 12.70/Share Dividend: Angel One Stock Hits New 52-Week High, Gives 650% Returns In 5 Years; Buy?

Stock broking firm, Angel One touched a new 52-week high of Rs 2,250 apiece during the trading hours of October 13th before correcting. Angel One's stock movement was due to its dividend reward of up to Rs 12.70 per share to shareholders, while healthy Q2 numbers. The company's revenue was in line with estimates, while profitability was better than the street's expectations. There is more steam for buying in this stock.

During Q2FY24, Angel One posted a net profit of Rs 304.5 crore, rising by a whopping 38% from Rs 220.8 crore in Q2FY23. EBDAT also witnessed double-digit growth of 37% to Rs 418.5 crore as against Rs 305.6 crore in Q2FY23. Total income zoomed by 29% YoY to Rs 1,049.3 crore.

On Friday, Angel One shares touched a new 52-week high of Rs 2,250 apiece on BSE. However, after market hours, the stock ended at Rs 2,071.35 apiece, down by 1.54%. While the market cap stood at Rs 17,377.29 crore.

Year-to-date, Angel One's share price has rallied over 57%. But in 5 years, the stock has given behemoth returns to the tune of over 654%.

Dinesh Thakkar, Chairman & Managing Director said, "We are delighted to announce that Q2 '24 has marked a historic milestone for us, as we have achieved our best-ever performance across financial and operational metrics."

Thakkar revealed that Angel One continues to make investments in refining various journeys to ensure a seamless and superior experience. He added, "We meticulously fine-tuned the onboarding process and introduced a range of innovative features, resulting in heightened client satisfaction. These efforts have not only elevated our NPS and Playstore rankings but have also expanded our market share in India's demat accounts and retail equity turnover."

The company is fostering a long-term approach to investing in equities and mutual funds. This strategic focus yielded strong adoption, solidifying our position as the second-largest player in incremental registered SIPs in India, the MD said.

Also, the company is systematically broadening its financial services offerings, with plans to close the financial lifecycle loop for its clients by distributing consumer credit products on its platform in the upcoming quarters, he added.

Lastly, Thakkar said, "In line with our established dividend policy, the Board of Directors has approved the distribution of 35% of the quarter's profit as a second interim dividend, reaffirming our commitment to delivering value to our shareholders."

Coming to the dividends, the company declared a second interim dividend of Rs 12.70 per share for FY24, having a face value of Rs 10 each. The record date has been fixed to October 20 to determine eligible shareholders for the benefit.

Angel One stated that the dividend shall be paid on or before November 10, 2023, to those members, whose names appear on the Register of Members or in records of Depositories as beneficial owners of the shares as of the closure of business hours of Friday, October 20, 2023, which is the Record Date fixed for the purpose.

Earlier, for FY24, the company paid a first interim dividend of Rs 9.25 per share or 92.5% to its shareholders. In the fiscal 2022-23, the company paid 398.50% dividends amounting to Rs 39.85 per share.

Buy or Sell?

In its research note, Motilal Oswal said, "ANGELONE is strategically positioned to benefit from the financialization of savings and digitization trends. It demonstrated a strong performance in 2QFY24 with markets reaching an all-time high. The management continues to invest in technology to reinforce its market standing. However, there has been a slowdown in client additions and activation rates."

Hence, Motilal has recommended buying Angel One shares.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, 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.