Ajcon Global's IPO report on Angel Broking
Incorporated on August 8, 1996, Angel Broking Limited (“Angel”) is one of the largest independent full‐service retail broking house in India in terms of active clients on NSE as of June 30, 2020 (Source: CRISIL Report). The company was initially incorporated as “M. BNL. Securities Private Limited. Dinesh D. Thakkar, Ashok D. Thakkar and Sunita A. Magnani are the Promoters of the company. Angel is a technology led financial services company, that provides broking and advisory services, margin funding, loans against shares (through one of its Subsidiaries, AFPL) and financial products distribution to its clients under the brand “Angel Broking”. Its broking services are offered through (i) its online and digital platforms, and (ii) its network of more than 11,000 sub‐brokers, as of June 30, 2020. Angel has more than 43,90,000 downloads of its Angel Broking mobile app and nearly 10,00,000 downloads of its Angel BEE app as of June 30, 2020, which enables its clients to avail the services digitally.
Valuation and Outlook
At the upper end of price band of Rs. 306, the issue is valued at a P/E of 31x at post IPO FY20 EPS. We believe the issue is priced at a premium owing to its dominance in retail broking space and technology edge over traditional brokers, improved performance even in COVID‐19 era and improving client base owing to its focus on technology. With due consideration to the above factors, we recommend "SUBSCRIBE the issue for listing gains"
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