Angel One Reports Steady Client Growth in October Amidst YoY Decline in New Additions

Angel One Ltd., a prominent brokerage firm, reported its performance for October 2024. The company added 5.6 lakh gross new clients in October, representing a 3% increase from September 2024. However, this figure shows a significant 19.8% year-on-year decline when compared to the 7 lakh clients acquired in October 2023. Despite the dip in new client acquisition year-on-year, Angel One's total client base expanded to 3.46 crore in October 2024, up 15% from September 2024. This also signifies a robust 22.5% growth from the 2.82 crore clients recorded in October 2023. The company also saw positive trends in its financial metrics. The average client funding book increased by 4.3% MoM to ₹5,791 crore, and by an impressive 40.6% YoY compared to October 2023. Trading activity, measured by average daily turnover (ADTO), demonstrated strong momentum. The F&O segment's ADTO surged 23.2% MoM and 20.4% YoY to ₹57.54 lakh crore. Overall ADTO, based on notional turnover, reached ₹59.29 lakh crore, up 23.1% MoM and 22.4% YoY. Average daily orders improved to 66.9 lakh, a 15.3% MoM increase, though still 14.1% lower than a year ago. The commodity segment experienced record orders and turnover despite a moderated market share. **Impact**: This news indicates continued growth in Angel One's user base and trading volumes, signalling a healthy trend for the Indian broking sector. The YoY decline in new client additions, however, warrants monitoring for potential market saturation or increased competition. The strong growth in funding book and turnover reflects increased investor participation, which can positively influence the company's revenue and profitability. The stock's performance on the BSE, with a slight uptick, suggests a positive market reception to these results. The overall impact on the Indian stock market is moderate, highlighting the performance of a key player in the financial services sector. **Impact Rating**: 6/10. **Difficult Terms and Meanings**: * **Gross new clients**: The total number of new accounts opened by clients during a specific period, before any closures. * **Year-on-year (YoY) decline**: A decrease in a metric compared to the same period in the previous year (e.g., October 2024 vs October 2023). * **Client base**: The total number of active customers a company serves. * **Average client-funding book**: The average amount of money clients have borrowed from the brokerage to trade, or the total capital deployed by clients for trading purposes managed by the broker. * **Average daily turnover (ADTO)**: The average total value of all trades (buy and sell) executed in a day. * **Notional turnover**: In derivatives trading, this is the total value of all contracts, which is much larger than the actual money exchanged but is used as a measure of market activity. * **F&O segment**: Refers to trading in Financial Derivatives, which include Futures and Options contracts. * **Commodity market share**: The proportion of the total trading volume in commodities that a particular company handles.