Angel One Gets 'Buy' From JM Financial As Brokerage Bullish On Expansion To Wealth Management, Insurance
One of the key highlights for Angel One is the transition from an offline broker to a digital market leader over the last decade, the brokerage noted.
JM Financial has initiated coverage on Angel One with a 'Buy' rating. The brokerage expects the company to have earnings per share of Rs 141 in the financial year 2027, hence a target price of Rs 2,700 has been set with an expected price-to-earnings ratio of 19 times the FY27 EPS.
"The company is amongst the largest retail brokers in India, with over 32 million clients, of which over 9 million are NSE active," the brokerage noted.
It also noted that, the company saw strong growth across parameters with client base growing at 68% compound annual growth rate, net revenue at 80% CAGR and profit after tax at 90% CAGR over FY20-FY24.
"Starting in FY24, Angel One has entered adjacent business lines within financial services, including wealth management, asset management, loan origination and life insurance even as regulations around the derivatives business have evolved," JM Financial said.
One of the key highlights for Angel One is the transition from an offline broker to a digital market leader over the last decade, the brokerage noted.
It further added that the company is now focused on expanding its offerings to wealth management, credit disbursement and insurance offering and distribution.
Retail broking has seen a decline in volume over the last year, which should translate into a 15% fall in PAT for Angel One in FY26e.
"With the distribution offerings to existing clients and normalising cost of client acquisition, we expect the company to return to strong growth by FY27e. We also see the stock incrementally rerate as the company’s revenue transitions from transactional to recurring," the brokerage said.
