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ANGELONE - Fundamental Analysis: Financial Health & Valuation

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Rating: 4.1

Last Updated Time : 19 Mar 26, 07:09 pm

Fundamental Rating: 4.1

Stock Code ANGELONE Market Cap 21,461 Cr. Current Price 236 ₹ High / Low 328 ₹
Stock P/E 25.2 Book Value 64.2 ₹ Dividend Yield 2.03 % ROCE 26.3 %
ROE 28.3 % Face Value 1.00 ₹ DMA 50 242 ₹ DMA 200 251 ₹
Chg in FII Hold -0.66 % Chg in DII Hold 3.24 % PAT Qtr 301 Cr. PAT Prev Qtr 236 Cr.
RSI 51.0 MACD -8.87 Volume 2,73,09,799 Avg Vol 1Wk 1,46,27,890
Low price 206 ₹ High price 328 ₹ PEG Ratio 0.99 Debt to equity 0.76
52w Index 24.8 % Qtr Profit Var 0.00 % EPS 9.39 ₹ Industry PE 17.2

📊 Financials

  • Revenue & Profitability: PAT improved from ₹236 Cr. to ₹301 Cr., showing strong earnings momentum. EPS at ₹9.39 is modest but consistent.
  • Margins & Returns: ROCE at 26.3% and ROE at 28.3% are excellent, reflecting strong efficiency and profitability.
  • Debt & Liquidity: Debt-to-equity ratio of 0.76 indicates moderate leverage, manageable but worth monitoring.
  • Cash Flow: Dividend yield of 2.03% provides attractive shareholder returns.

💹 Valuation

  • P/E Ratio: 25.2 vs Industry PE of 17.2 — trading at a premium valuation.
  • P/B Ratio: Current price ₹236 vs Book Value ₹64.2 — ~3.7x book value, moderately expensive.
  • PEG Ratio: 0.99 — indicates fair valuation relative to growth.
  • Intrinsic Value: Current price is slightly above fair value, offering limited margin of safety.

🏢 Business Model & Competitive Advantage

  • Operates in financial services and brokerage, benefiting from rising retail participation in capital markets.
  • High ROCE and ROE reflect operational excellence and strong competitive positioning.
  • Moderate debt levels are manageable, but leverage should be monitored.

📈 Entry Zone & Long-Term Guidance

  • Entry Zone: Attractive accumulation range between ₹220 – ₹235, near its support levels.
  • Long-Term Holding: Strong fundamentals and industry tailwinds make it a good candidate for long-term holding. Accumulate on dips for sustained growth.

✅ Positive

  • Excellent ROCE (26.3%) and ROE (28.3%) highlight superior efficiency.
  • Dividend yield of 2.03% provides attractive shareholder returns.
  • DII holdings increased by 3.24%, showing strong domestic institutional confidence.

⚠️ Limitation

  • Valuation multiples (P/E, P/B) suggest overvaluation compared to industry peers.
  • Debt-to-equity ratio of 0.76 indicates moderate leverage.
  • EPS remains modest relative to price levels.

📉 Company Negative News

  • FII holdings declined by 0.66%, showing reduced foreign investor confidence.
  • MACD at -8.87 indicates weak technical momentum.

📈 Company Positive News

  • Quarterly PAT growth highlights strong earnings trajectory.
  • DII holdings increased significantly, showing confidence from domestic institutions.
  • High trading volumes reflect strong investor interest.

🏭 Industry

  • Financial services sector benefits from rising retail participation and capital market growth.
  • Industry PE at 17.2 is lower than company’s valuation, highlighting premium pricing for ANGELONE.

🔎 Conclusion

ANGELONE demonstrates strong fundamentals with excellent efficiency, consistent earnings growth, and attractive dividend yield. However, valuations are stretched and moderate debt levels require monitoring. Best strategy: accumulate near ₹220–₹235 and hold for long-term gains, leveraging industry growth and the company’s strong competitive positioning.

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