Angel One shares plunge 10% to 52-week low amid data breach concerns

Shares of Angel One tumbled 10 percent in intra-day trading on Monday, March 3, hitting a 52-week low of ₹1,952.20 amid heavy volumes. A total of 24.4 lakh equity shares worth ₹493.3 crore changed hands. The stock has now declined 12 percent over the past two days following the company’s disclosure of a data breach.

Data Breach Raises Investor Concerns

Angel One informed the stock exchanges that some of its AWS resources had been “compromised,” leading to unauthorized access to client data on the dark web.

“In order to contain the impact, the company has immediately changed all related credentials of its AWS cloud and other applications… We continue to investigate this further to assess its potential impact, if any,” Angel One said in a statement.

In a stock exchange filing, the company added that it had enlisted an external forensic expert to assess the breach and conduct a root cause analysis.

“We have verified that this breach does not have any impact on clients’ securities, funds, and credentials; and all our client accounts remain secure. We continue to investigate this further to assess its potential impact, if any, and are making this disclosure as a matter of good governance,” the brokerage firm said in its notification dated February 28.

Client Base and Financial Performance

Despite the recent setback, Angel One’s client base continues to expand. As of January 2025, the company served 30.13 million clients, adding 66,000 new accounts in the month. In comparison, the client base stood at 29.52 million in December 2024 and 20.43 million in January 2024.

On the financial front, credit rating agency CRISIL reaffirmed its ratings on Angel One’s various facilities.

It maintained a ‘CRISIL AA-’ rating with a ‘Positive’ outlook on the company’s long-term ratings and reaffirmed its ‘CRISIL A1+’ rating on short-term ratings.

“The ratings continue to factor in the Angel group’s strong market share and longstanding presence in the equity broking segment along with extensive experience of its promoters in the capital market business. The ratings also take into consideration the group’s sound risk management systems and its comfortable capital position,” CRISIL stated.

The company’s growing active client base has also translated into improved earnings. Broking income rose to ₹2,678 crore for the first nine months of FY25 (9MFY25), reflecting a 34 percent year-on-year growth. Total income for the same period stood at ₹4,190 crore, marking a 43 percent annual increase.

Stock Price Trend

Angel One’s stock has lost over 23 percent in the last year. It declined 7.5 percent in February following a sharp 20 percent drop in January.

Currently, the stock is more than 44 percent below its 52-week high of ₹3,502.60, recorded in December 2024.

In summary, the recent data breach disclosure has heightened investor concerns, triggering a sharp selloff in Angel One’s stock. While the company has taken immediate remedial actions and reassured clients regarding fund security, the breach’s long-term impact on investor confidence remains to be seen. Meanwhile, despite the stock’s decline, Angel One continues to expand its client base and post strong financial performance, as indicated by CRISIL’s reaffirmed ratings and robust earnings growth.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.