Buy Angel One; target of Rs 3469: ICICI Securities

ICICI Securities research report on Angel One

Angel One is driving a very optimum balanced growth model between earnings and business investment. This is well illustrated by a margin decline (a combination of client acquisition and investments) of 616bps and earnings growth of 46% YoY in FY24. The recent fund raise of INR 15bn may enable growth in broking business while there is steady capacity buildup in AMC, wealth and lending businesses.

Outlook

We upgrade the stock to BUY (from Hold) with an unchanged target price of INR 3,469 based on 15x FY26E EPS of INR 231. Risk: Any regulatory move against rising exchange volumes. Recently, RBI decided to form a regulatory panel to weigh risks in derivatives market (link) which has made us cut the valuation multiple from 20x to 15x. We, however, believe that risk reward is favourable basis the track record of the company and current valuations.