Buy Angel One, target price Rs 3,600: Motilal Oswal Financial Services

Motilal Oswal Financial Services has a buy call on Angel One with a target price of Rs 3,600. The current market price of Angel One is Rs 2,896. Angel One, incorporated in 1996, is a Small Cap company with a market cap of Rs 26117.64 crore, operating in Financial Services sector.

Angel One's key products/revenue segments include Fees & Commission Income, Interest and Income From Sale Of Share & Securities for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 1515.96 crore, up 7.51% from last quarter Total Income of Rs 1410.07 crore and up 44.47% from last year same quarter Total Income of Rs 1049.30 crore. The company has reported net profit after tax of Rs 423.37 crore in the latest quarter.

Investment Rationale
Motilal Oswal Financial Services has built in a total size of 14,000 APs by FY27, of which 30% will sell MFs generating an AUM of Rs 126 billion and leading to gross/net revenue of Rs 1,260/378 m (net revenues is post 70% sharing with APs). For instance, Prudent Corporate Advisory has grown its number of partners/ number of customers/AUM by 11x/9x/22x over the past decade.

Promoter/FII Holdings
Promoters held 35.61 per cent stake in the company as of 30-Sep-2024, while FIIs owned 12.27 per cent, DIIs 12.73 per cent.