Angel One's November Woes: Stock Plunges 3.5% as Client Acquisition & Orders Dip! What's Next?

Angel One Ltd.'s stock took a hit on Wednesday as investors reacted to its November business update. The brokerage firm reported significant month-on-month and year-on-year declines in crucial growth metrics like client acquisition and order volumes, sparking concerns among shareholders.

Key Business Metrics Decline

• Gross client acquisition in November stood at 0.5 million (5 lakh), an 11.1% decrease from October and a 16.6% fall year-on-year.
• The total number of orders decreased to 117.3 million, marking a 12.3% drop from the prior month and a 10.4% decline from the previous year.
• Average daily orders also fell by 7.7% month-on-month and 15.1% year-on-year to 6.17 million.
• Average daily turnover (ADTO) in futures and options, based on option premium turnover, saw a 6.5% decrease from the previous month and a 5.4% decline year-on-year, reaching ₹14,000 crore.

Client Base Growth

• Despite the month-on-month dip in acquisition, Angel One's total client base expanded by 1.5% from October.
• Year-on-year, the client base grew significantly by 21.9% to reach 35.08 million in November.

Market Share

• Angel One's retail turnover market share in the futures and options segment saw a slight contraction, falling to 21.5% from 21.6% in October and 21.9% in the previous year.

Stock Price Movement

• Shares of Angel One were down 3.5% in early trading on Wednesday, trading at ₹2,714.3 per share.
• The stock has shown resilience over a longer period, with a 6% gain in the last month and a 10% increase year-to-date in 2025.

Market Reaction

• The market reacted negatively to the business update, leading to an immediate dip in Angel One's stock price. Investors seem concerned about the slowing growth in key operational metrics.

Impact

• This news directly impacts Angel One's investors and stakeholders, potentially affecting investor sentiment towards the stock and the broader brokerage sector if such trends persist.
  • Impact rating: 6

Difficult Terms Explained

• Gross client acquisition: The total number of new clients added by the company in a given period.
• Orders: Refers to the total number of buy and sell transactions executed by clients on the platform.
• Average daily orders: The average number of transactions executed per day.
• Average daily turnover (ADTO): The average total value of all trades executed daily. In this context, it's specifically for futures and options, based on option premium turnover.
• Futures and Options (F&O): These are derivative contracts. Futures are agreements to buy/sell an asset at a predetermined price on a future date, while Options give the buyer the right, but not the obligation, to buy or sell an asset.
• Option premium turnover: The total value of premiums paid for options contracts.
• Retail turnover market share: The proportion of total trading value generated by individual investors (retail investors) on the platform, relative to the total market.