ICICI Securities research report on Angel One
Angel One’s business execution remains strong, underlined by increasing share in cash volumes (17.5%), share in F&O volumes (20.7%), share in active NSE clients (15.5%), growth in MTF book (48.1% QoQ average MTF book growth in Q2FY25), and prospects of new business segments such as AMC, wealth management and other financial services. As such, despite possible regulatory overhang on option volumes, we remain constructive on earnings growth opportunity, coupled with the prospect of higher investor returns, basis current valuation (17x FY26E EPS). Key risk: Drop in volumes post the regulatory changes which may reduce participation in capital markets.
Outlook
Our FY25E/26E EBITDA margin stands at 45.2%/45.2% vs 46.8% in FY24. We estimate PAT of INR 14.9bn/16.7bn in FY25/26E, respectively. We value Angel at 20x multiple on FY26E EPS of INR 185 (earlier INR 187) to arrive at our revised target price of INR 3,700 (earlier INR 2,800).
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