Angel One Ltd. share price target

Angel One reported total income of INR9.9b, up 19% YoY/down 18% QoQ and largely in line with our estimate. The sequential decline was owing to the impact of F&O regulations and True-to-Label regulations on other income.

Angel One’s business execution remains strong, underlined by increasing share in cash volumes (17.5%), share in F&O volumes (20.7%)

2QFY25 PAT grew 39% YoY to INR4.2b (5% beat), aided by better than expected operational efficiency. Revenue from operations jumped 45% YoY to INR9.8b.

Quarterly Update Q1FY25

Quarterly Update Q4FY24

Net brokerage income grew 65% YoY to INR6.8b in 4QFY24 and total
income from operations rose 65% YoY to INR10.6b. Total operating expenses surged 114% YoY and 26% QoQ. On a sequential basis, the CI ratio declined marginally by ~80bp to 55.2% in 4QFY24

Quarterly Update Q3FY24

Quarterly Update Q2FY24

Quarterly Update Q1FY24

Angel One (Angel) is gradually focusing on its business strategy to expand product portfolio beyond broking and increasing the reach through improved digital collaboration with offline partners, while continually augmenting its core digital capability through SuperApp.

Angel One (Angel) registered strong performance in May’23 in terms of growth in number of orders, client additions and market share after a soft Apr’23. Factoring this in our estimates, we forecast PAT at a strong Rs2.3bn in Q1FY24 (vs Rs10bn in FY24E).

Angel One (Angel) continued with its strong performance in Q4FY23 in terms of client additions (~1.3mn in Q4FY23 vs ~1mn in Q3FY23) and growth in the number of orders (average monthly run-rate of ~88mn orders in Q4FY23 vs ~74mn in 9MFY23). Factoring this, we raise our EPS estimates by 7% and 11% for FY24 and FY25, respectively.

Quarterly Update Q4FY23

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.

Angel One (Angel) continued with its strong performance in Q3FY23 in terms of client additions (average of ~1mn per quarter in 9MFY23), growth in the number of orders (average monthly run-rate of ~74mn in 9MFY23) and cost discipline (total ‘opex to sales’ of 48% in 9MFY23). These strides are reflected in 9.5% and 11% increase in our EPS estimates for FY23E and FY24E respectively.