CEO resignation a negative surprise; we remain positive basis business momentum, attractive valuations
We retain our BUY rating on Angel One on the basis of its continuous business momentum and the currently low valuations (stock trading at 10x FY24E P/E). The possible regulatory threat on earnings from proposed blocking of funds, which can impact the float income of brokers, and any impact from the resignation of CEO Narayan Gangadhar, are well captured in our new valuation multiple of 12x compared to the earlier 18x.