Buy ANGEL One; target of Rs 2550: Motilal Oswal

Motilal Oswal's research report on ANGEL One

ANGELONE reported a PAT of INR3b, a 7% beat on our estimates and saw a growth of 42% YoY. Net Revenue grew 48% YoY and 30% QoQ at INR6.7b (in line with our estimate). CI ratio increased significantly to 48.7% (vs. estimate of 52.6%), declining 270bp sequentially. Expenses were 4.5% lower than our estimates, primarily due to a reduction in administrative and other expenses, which came in 7% lower than expected. The Board has declared 2nd Interim Dividend of INR12.7 per share for FY24. In 1HFY24, the company reported revenue/PAT growth of 36%/33%. We have raised our FY24/FY25 earnings estimates by 8.9%/7.9% to factor in higher net interest income on account of growth in MTF book, relatively lower admin expenses, and better-than-forecasted growth in F&O orders.

Outlook

We reiterate our BUY rating on the stock with a revised TP of INR 2,550 (premised on 16x Mar’25E EPS).

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