The brokerage industry will grow like this for 5 to 10 years: Angel Broking CMD

Dinesh Thakkar, CMD, Angel Broking estimates that the current momentum in the securities brokerage industry will last at least 5-10 years, as market penetration is very low in India. Edited excerpts from an interview:

What was the last quarter for the company?

We reached the highest gross bill of approximately 0.96 million customers. It was the highest of any quarter in our history, growing nearly 87% quarter over quarter. For the year as a whole, we had approximately 2.4 million customers, which is approximately 322% more than last year. It is one of the best achievements of the year. Our share in the demat accounts was around 17.6%. We have seen a good improvement in our market share.

A lot of people on the streets are also wondering how sustainable is this frenetic pace of your growth?
The rise of the brokerage industry is due to digitization and people coming from level II and III cities.

has grown by around 35% this year, but 75% of the additional customer contribution has come from digital players like Angel Broking. Look at the underpenetration of the stock market in India. Today our penetration is barely 4% and China, Korea has around 12-13% while the United States is around 32%. So I think there is enough room for improvement for digital players like us. I see this trend continuing for at least 5 to 10 years.

This generation is very different from the generation we have served before. This generation is more objective and uses many technological tools to analyze the market. So I see strong growth coming from level II and level III cities. Millennials and Gen Z are much more educated and knowledgeable about how to approach the market. They are not risk takers but more informed investors.

On the medium and long term stock market outlook
I think within a few months we would be able to get out of this lockdown phase and the economy will open up. I expect GDP to grow by around 8-9% for this year as well. I expect it to be double digits next year. So if you look at the growth trajectory for the next 3-4 years in India and globally, there will be a huge increase in investment from the IFIs as well as local people. I am optimistic about the market. There may be a few gut corrections, but this is an opportunity for investors to buy.


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