Steady Client Acquisition of 109% YoY, Buy This Capital Market Stock for Aggressive 55% Upside: Motilal Oswal

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Angel One: target price, current market price and market capitalization

The current market price (CMP) of Angel One is Rs. 1487. Motilal Oswal has estimated a target price for the stock at Rs. 2300. Stock is expected to yield a return of 55%, in 1 year. It is a mid-cap company with a market capitalization of Rs. 12,111 crores.

Stock market outlook
Current market price (CMP) Rs.1487
Target price Rs.2300
Potential return over 1 year 55.00%
Stock price at 52 week high Rs. 2,022
52 week low price Rs.990.50

Angel One is a technology-driven financial services company that provides brokerage and advisory services, margin financing, equity-based lending and financial product distribution. Their brokerage and related services are offered through our online and digital platforms, and their network of over 16,000+ registered authorized persons, as of December 31, 2021.

Company Performance: Angel One

Company Performance: Angel One

The company released an impressive financial report. Angel One’s total customer base stood at 10.1 million in May 2022. The customer base grew by 5% on a monthly basis, while it grew by 109% on a yearly basis. Angel One’s gross customer acquisition rate increased to 0.47 million in May 2022 from 0.44 million in April 2022. On the other hand, the incremental acquisition rate was better than the Motilal Oswal monthly expectation of 0.4 million for FY23.

The average funding book saw a strong MoM growth of 10% of around Rs. 18.8b. On a MoM basis, the company lost 150 basis points of market share in the F&O segment, but gained 190 basis points in the Commodities segment. The number of orders stood at 70.6 million in May 2022, up 7% per month, while the number of orders per day saw a monthly decline of 4% to 3.4 million.

However, the overall average daily turnover of Angel One or ADTO decreased by 6% on a monthly basis, with a decline of 5.5%/27.5% for F&O/Cash ADTO.

Motilal Oswal talks about the benefits of stock

Motilal Oswal talks about the benefits of stock

Motilal Oswal mentioned the benefits and potential of the stock, given its strong investment orientations. The brokerage firm said, “Angel One plays perfectly on the financialization of savings and digitization. We expect the company to register a 23% CAGR of revenue in FY22-23. Angel One guided sustained investments in technology and marketing, with a focus on acquiring more customers and improving its activation rates.We forecast a CAGR PAT of 23% in FY22-24 and a 39.5% FY24 RoE. The stock trades at 13x FY24E P/E, which is attractive given Angel One’s strong earnings growth profile.” The brokerage firm maintained a buy rating on the stock, based on 20x FY24E EPS.

Disclaimer

Disclaimer

The stock above was taken from Motilal Oswal’s brokerage report. Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author, and the brokerage are not responsible for any losses caused as a result of decisions based on the article.

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