Target: ₹2,319
CMP: ₹2,057.70
Angel One Ltd (AOL) reported a strong growth of 36 per cent on a Q-o-Q basis and 47 per cent on a Y-o-Y basis in the number of trades during the quarter. The all-time high (average daily turnover) ADTO in the F&O and commodity contributed to this growth, led by robust market conditions.
With consistent growth in client base, the Company’s net revenue in the broking segment has jumped by 32 per cent on a Q-o-Q basis and 46 per cent on a Y-o-Y basis, contributing 69 per cent to its gross income. PAT surged by 38 per cent on a Q-o-Q basis and 43 per cent on a Y-o-Y basis in Q2-FY24.
The company continues to gain market share in NSE’s active client base, up from 14.3% in Q1FY24 to 14.6 per cent in Q2-FY24.
We have revised our estimates and maintain a BUY rating on Angel One with a target price of ₹2,319 (15x FY25 earnings). AOL showcased a strong performance on all fronts, leading to market share gain Q-o-Q. We expect AOL to grow faster than the industry.