In my opinion, in a bull market (like we are in) earnings of Brokers and AMC companies will necessarily be higher and they will continue to post great numbers QOQ/ YOY due to addition of new clients/increased options turnover/ increased market activity. Operating leverage is at play in AMC companies because increased revenue doesn’t necessitate corresponding increase in expense.
But the bigger risk always remains sebi intervention (like the recent f&o decision which brought a fall in price) or whenever the bears take over ( which is to say when the music stops) and that’s when revenue growth will take a hit
Discl : Invested
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