Buy Angel One; target of Rs 3200: Motilal Oswal

Buy

Motilal Oswal's research report on Angel One

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. For 9MFY25, total income grew 45% YoY to INR33b. Total operating expenses grew 23% YoY (13% higher than est.), leading to a CI ratio of 58% vs. 56% in 3QFY24 (vs. our est. of 52.6%), driven by higher-than-expected admin and other expenses. The elevated C/I ratio resulted in PAT of INR2.8b (+8% YoY), 11% below our estimate. For 9MFY25, PAT grew 27% YoY to INR10b. The number of orders stood at 422m in 3QFY25, up 20% YoY/down 14% QoQ and largely in line with our estimate. MTF book continued to scale up and was at INR43.3b (up 4% QoQ/118% YoY) at the end of 3QFY25. The distribution business witnessed the highest SIP registrations in Dec’24 (~0.9m) and cumulative credit disbursements of INR6b as of Dec’24.

Outlook

We have cut our target multiple owing to the weaker-than-expected impact of cash brokerage introduction and uncertainty around the price hike to tackle the F&O regulation impact. We have revised our TP to INR3,200 on 17x Sep’26E EPS.

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Angel One - 15012025 - moti