During the lockdown, there was a significant increase in the number of people starting to invest in stocks. During March and April, 12 lakh new Demat accounts were opened under CDSL. The number of new accounts in January and February was 90,000.
Statistics show that a large number of people who were locked in their homes during the lodckdown period entered the sector when the downturn in the stock market gave them the opportunity to invest. This has led to an improvement in the business of stock broking companies, including Geojit.
Stock broking is a business that has been going on uninterrupted during the lockdown. The lockdown did not affect the performance of the stock market in any way. The market functioned as usual. Customers who trade stocks online were able to carry on as usual during the lockdown. Companies operating under SEBI were exempted from the lockdown.
Geojit Financial Services is a leading company in the field of broking. Geojit plans to further diversify into digital transaction methods. The company is in talks to acquire FundsIndia.com, an online mutual fund investment platform.
‘During the January-March quarter, Geojit doubled its profits. Geojit’s earned Rs 19.70 crore during the three-month period when the impact of COVID-19 affected businesses. Geojit had a net profit of Rs.7.43 crore in the January – March quarter last year.
Taking into account the overall performance of the last financial year, Geojit had achieved brilliant growth. The company had posted a net profit of Rs.50.58 crore in the previous fiscal. In the earlier financial year, it had declared a profit of Rs.27.72 crores.
The stock is currently trading at Rs.36, up from Rs.43.70 last month. As the circumstances are conducive for growth, the stock is likely to continue to grow as Geojit’s business improves.
