Angel One Ltd. share price target

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.

Quarterly Update Q3FY23

Quarterly Update Q2FY23

Quarterly Update Q2FY23

Angel One (Angel) has reported consistent client additions, growth in number of orders and cost discipline, which is reflected in PAT increasing from Rs1.34bn in Q2FY22 to Rs2.14bn in Q2FY23.

Initiating Coverage Report

Angel One (formerly Angel Broking) maintained its business momentum in Aug’22 with 9%/4%/29% MoM increase in number of orders/client base/gross client acquisition.