Motilal Oswal’s Bullish Outlook: ANGEL One Target Price - INR 2550

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Motilal Oswal Forecasts ANGEL One to Reach INR 2550


ANGEL One Limited, formerly known as Angel Broking Limited, is an Indian stockbroker firm established in 1996. The company is a member of the Bombay Stock Exchange, National Stock Exchange of India, National Commodity & Derivatives Exchange Limited and Multi Commodity Exchange of India Limited. It provides a range of financial services including stockbroking, portfolio management, mutual funds, life insurance, health insurance, IPO, depository services, and investment advisory.

Stellar Financial Performance by ANGEL One: Surpassing Expectations

ANGEL One reported a Profit After Tax (PAT) of INR 3 billion. This figure exceeded our estimates by 7% and marked a growth of 42% Year on Year (YoY). This robust performance is indicative of the company’s strong financial health and growth potential. It also reflects the effectiveness of the company’s business strategies and its ability to generate substantial profits.

Impressive Revenue Growth by ANGEL One: Skyrocketing Success

The company’s Net Revenue grew by 48% YoY and 30% Quarter on Quarter (QoQ) to INR 6.7 billion. This growth was in line with our estimate. The significant revenue growth underscores the company’s market dominance and its ability to leverage market opportunities. It also highlights the company’s successful customer acquisition strategies and its strong product portfolio.

Efficient Cost Management by ANGEL One: Mastering the Balance

The Cost-Income (CI) ratio increased significantly to 48.7%, compared to our estimate of 52.6%, marking a sequential decline of 270 basis points. This improvement in the CI ratio reflects the company’s effective cost management strategies. It also indicates that the company has been successful in enhancing its operational efficiency and managing its resources effectively.

Lower-than-Expected Expenses by ANGEL One: Prudent Spending

The company’s expenses were 4.5% lower than our estimates, primarily due to a reduction in administrative and other expenses, which were 7% lower than expected. This demonstrates the company’s focus on cost optimization and operational efficiency. It also shows that the company is committed to maintaining a lean operational structure while ensuring high-quality service delivery.

Rewarding Shareholders of ANGEL One: Sharing the Wealth

The Board has declared a second Interim Dividend of INR 12.7 per share for FY24. This decision reflects the company’s commitment to rewarding its shareholders and its strong financial position. It also underscores the company’s confidence in its future prospects and its dedication to providing returns to its shareholders.

ANGEL One Consistent Growth in 1HFY24: Steady Ascent

In the first half of FY24, the company reported revenue/PAT growth of 36%/33%. This consistent growth trajectory underscores the company’s ability to deliver strong financial results. It also highlights the effectiveness of the company’s business strategies and its ability to sustain growth over time.

ANGEL One Upward Revision of Earnings Estimates: A Bright Horizon

We have raised our FY24/FY25 earnings estimates by 8.9%/7.9% to factor in higher net interest income due to growth in Margin Trading Facility (MTF) book, relatively lower administrative expenses, and better-than-forecasted growth in Futures & Options (F&O) orders.

Motilal Oswal’s Target for ANGEL One: Aiming High

Motilal Oswal has set a target price of INR 2550 for ANGEL One, reflecting their confidence in the company’s future performance and potential for further growth.

In conclusion, ANGEL One presents a promising investment opportunity with its strong financial performance, efficient cost management, and consistent growth trajectory. With a target of INR 2550 set by Motilal Oswal, it is poised for significant returns in the future.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be considered as investment advice. Investment in securities market are subject to market risks, read all related documents carefully before investing.

Keyword: ANGEL One, Financial Performance, Revenue Growth, Cost Management, Lower Expenses, Shareholder Dividends, 1HFY24 Growth, Earnings Estimates, Motilal Oswal Target

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