Motilal Oswal has given Buy recommendation for ANGEL One recommended buy rating on the stock with a target price of Rs 1900 in its research re with a target price of Rs. 1900 in its research report issued on Jan 18, 2022

Motilal Oswal’s research report on ANGEL One

PAT grew 23% QoQ and 125% YoY to INR1.65b (9% beat) in 3QFY22. The beat on profitability was driven by a) a 2% beat on operating revenue (up 17% QoQ and 105% YoY to INR3.5b) owing to a 5% beat on interest income, whereas net brokerage revenue was in line with our expectation; b) a 4% beat on other income (growth of 5% QoQ and 85% YoY); and c) admin costs coming in 6% below our expectation (growth of 5% QoQ and 103% YoY). CIR stood at 49.3% (est. 52.5%). The management has guided for a stable cost-to-income ratio of 49% in the coming quarters. The lead conversion ratio for direct clients improved substantially during the quarter, which translated into the activation ratio improving to 39% (from 38% in 2QFY22). The new onboarding journey improved the conversion ratio to 40.5% v/s 30.7%. We upgrade our earnings estimates by 8%/7%/7% for FY22E/FY23E/FY24E on the back of a strong margin performance in 3QFY22.

Outlook

We upgrade our PAT estimates by 8.0%/7.3%/6.9% for FY22E/FY23E/FY24E on the back of a better-than-expected CI ratio and the management guidance of the same sustaining. We maintain our BUY rating with revised Target Price of INR1,900 (20x Sep’23E EPS).

More Info on Trent

At 16:00 hrs Angel One was quoting at Rs 1,340.20, down Rs 174.95, or 11.55 percent.

It has touched an intraday high of Rs 1,515.00 and an intraday low of Rs 1,248.75.

It was trading with volumes of 200,703 shares, compared to its thirty day average of 55,443 shares, an increase of 262.00 percent.

In the previous trading session, the share closed up 2.10 percent or Rs 31.10 at Rs 1,515.15.

The share touched its 52-week high Rs 1,689.30 and 52-week low Rs 282.10 on 13 October, 2021 and 12 April, 2021, respectively.

Currently, it is trading 20.67 percent below its 52-week high and 375.08 percent above its 52-week low.

Market capitalisation stands at Rs 11,094.45 crore.

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