Buy Angel One; target of Rs 4200: Motilal Oswal

Motilal Oswal's research report on Angel One

Net brokerage income grew 65% YoY to INR6.8b in 4QFY24 and total income from operations rose 65% YoY to INR10.6b. Total operating expenses surged 114% YoY and 26% QoQ. On a sequential basis, the CI ratio declined marginally by ~80bp to 55.2% in 4QFY24. PAT stood at INR3.4b, up 27% YoY and 31% QoQ. For FY24, net revenue/PAT grew 45%/26% YoY to INR33.3b/INR11.3b. The company raised INR15b via QIP and the shares were allotted on 2nd Apr’24 at INR2,555.01 per share.

Outlook

We have raised our FY25/FY26 EPS estimates by 6%/8% to factor in the scale-up in business after the fund raise. On the other hand, IPL-related expenses have led to a cut in our EBIDTA margin estimates. We reiterate our BUY rating on the stock with a revised TP of INR4,200 (premised on 20x Mar’26E EPS).