Shares of Angel One opened 5% higher on April 18 as the retail stockbroker continued its solid quarterly performance, with consolidated profit rising 30.4% year-on-year to Rs 2.67 billion in the third quarter of the fiscal year 2022-23.

Revenue and operating performance were strong. Consolidated revenue stood at Rs 825.7 crore, up 21.3%, while on the operational side, EBITDA rose 30% year-on-year to Rs 385 crore.

Shares of Angel One were quoted at Rs 1,334.30 on the National Stock Exchange at 9:30 am, up 4% from the previous close. The stock has risen more than 23% in the past month.

It did take a hit last year, like the trend for all brokerage stocks when the retail frenzy subsides. Shares of Angel One are down nearly 40% from their all-time highs.

In the fourth quarter, the company’s total customer acquisition was 1.3 million, up 31% quarter-over-quarter but down 12% year-over-year.

Volatility in the stock market also contributed to a decline in the active customer ratio to 31.2% in the fourth quarter from 33.6% a year earlier. The active customer ratio indicates the number of customers who transact regularly.

While F&O and merchandise market share improved, Angel One’s cash market share fell to 12% from 13% in the previous quarter.

In March, ICICI Securities identified the exit of CEO Narayan Gangadhar and a reduction in floating income due to a fund freeze as key risks for the stock.

The Securities and Exchange Board of India (SEBI) has allowed the use of ASBA (Application Supported by Blocked Amount) in the secondary market. This means brokers cannot earn interest on “float” funds or sit idle in trading accounts.

ICICI Securities cut its target price on the stock to Rs 1,420 from Rs 1,980.