ANGELONE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | ANGELONE | Market Cap | 30,949 Cr. | Current Price | 339 ₹ | High / Low | 345 ₹ |
| Stock P/E | 30.2 | Book Value | 68.1 ₹ | Dividend Yield | 1.38 % | ROCE | 15.6 % |
| ROE | 17.3 % | Face Value | 1.00 ₹ | DMA 50 | 291 ₹ | DMA 200 | 265 ₹ |
| Chg in FII Hold | 0.36 % | Chg in DII Hold | 0.77 % | PAT Qtr | 351 Cr. | PAT Prev Qtr | 301 Cr. |
| RSI | 67.3 | MACD | 10.6 | Volume | 2,61,71,636 | Avg Vol 1Wk | 1,50,43,592 |
| Low price | 209 ₹ | High price | 345 ₹ | PEG Ratio | 5.60 | Debt to equity | 1.28 |
| 52w Index | 95.9 % | Qtr Profit Var | 95.0 % | EPS | 11.2 ₹ | Industry PE | 22.8 |
📊 Financial Overview:
ANGELONE shows moderate fundamentals with quarterly PAT rising to ₹351 Cr. from ₹301 Cr., reflecting strong earnings growth. ROCE at 15.6% and ROE at 17.3% indicate decent capital efficiency. Debt-to-equity is relatively high at 1.28, adding financial risk. EPS stands at ₹11.2, supported by profitability, but leverage remains a concern. Cash flows appear healthy given rising profits and strong trading volumes.
💹 Valuation Indicators:
The stock trades at a P/E of 30.2, above the industry average of 22.8, suggesting overvaluation. P/B ratio is ~5.0 (339 ÷ 68.1), which is elevated. PEG ratio of 5.60 indicates poor valuation relative to growth prospects. Dividend yield of 1.38% adds some investor appeal. Intrinsic value appears lower than current price, limiting upside potential.
🏢 Business Model & Advantage:
ANGELONE operates in financial services and brokerage, benefiting from India’s growing retail participation in capital markets. Its competitive advantage lies in digital platforms, strong client base, and diversified offerings. Institutional sentiment is positive, with FIIs (+0.36%) and DIIs (+0.77%) increasing holdings, reflecting confidence in growth.
📈 Entry Zone:
Technically, support lies near ₹291 (50 DMA) and ₹265 (200 DMA). A favorable entry zone would be between ₹300–₹320 if the stock consolidates. Long-term investors may hold given strong growth prospects, though high debt and stretched valuations warrant caution.
Positive
- 📌 Strong quarterly PAT growth (₹351 Cr. vs ₹301 Cr.).
- 📌 ROE (17.3%) and ROCE (15.6%) reflect decent efficiency.
- 📌 Dividend yield of 1.38% adds investor returns.
- 📌 Institutional investors increased holdings (FII +0.36%, DII +0.77%).
Limitation
- ⚠️ High debt-to-equity ratio (1.28).
- ⚠️ Elevated P/E (30.2) compared to industry average (22.8).
- ⚠️ High PEG ratio (5.60) suggests poor valuation relative to growth.
- ⚠️ P/B ratio (~5.0) is stretched.
Company Negative News
- 📰 Concerns over high leverage and stretched valuations.
Company Positive News
- 📰 Strong profit growth and rising institutional confidence.
- 📰 Dividend yield supports investor sentiment.
Industry
- 🌐 Financial services industry benefits from rising retail participation in capital markets.
- 🌐 Industry P/E at 22.8 reflects moderate valuations, while ANGELONE trades at a premium.
Conclusion
✅ ANGELONE is financially stable with strong profit growth and decent efficiency ratios. However, high debt and stretched valuations make it risky for fresh entry. Entry is advisable near ₹300–₹320 with caution. Long-term holding is supported by industry growth and digital advantage, but investors should monitor leverage and valuation multiples closely.
For deeper insights, you could explore a peer comparison or a financial services sector outlook to complement this analysis.