Angel One: This multibagger stock is down 20% in last six sessions, should you buy now?

livemint.com:

Angel One shares witnessed another 5% intraday decline today, reaching a low of ₹3,085 per share. This downtrend has persisted since the announcement of its Q3FY24 results on January 15, resulting in a cumulative loss of 20% in share value. After the release of the company's financial results, domestic brokerage firms revised down their earnings estimates for Angel One due to escalating operating expenses.

The company witnessed a notable surge in customer acquisition costs and an uptick in employee expenses, contributing to a 21% year-on-year and 13% quarter-on-quarter decrease in EBITDA. The rise in employee costs can be attributed to the increased headcount, particularly in the asset management business, data and analytics, and technology operations functions. Also Read: ICICI Bank share price jumps over 5% to 52-week high after Q3 results; should you buy? The company achieved the highest-ever client addition, welcoming 2.5 million clients in Q3.

This success, however, incurred escalated one-time customer acquisition and onboarding costs. Furthermore, heightened expenditures on technology infrastructure, DEMAT charges in alignment with business growth, and an additional quarterly expenditure of ₹25 million on CSR contributed to the overall increase, said domestic brokerage firm Keynote Capitals. Finance costs also jumped during the quarter due to increased average borrowings during the period, aligning with the expansion of the client funding book and elevated margin requirements resulting from business growth.