ANGELONE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:14 pm

Fundamental Rating: 4.0

📊 Core Financials:

- Profitability: PAT at 236 Cr. vs 134 Cr. shows growth, but quarterly variation (-46%) indicates volatility.

- Margins: ROCE at 26.3% and ROE at 28.3% highlight strong efficiency and profitability.

- Debt: Debt-to-equity at 0.76 → moderate leverage, needs monitoring.

- EPS: 94.2 ₹, robust earnings supporting valuation.

💹 Valuation Indicators:

- P/E: 26.8 vs Industry PE of 20.7 → slightly expensive compared to peers.

- P/B: 2,515 ₹ / 643 ₹ ≈ 3.91, trading at a premium.

- PEG Ratio: 1.05 → fairly valued relative to growth.

- Intrinsic Value: Estimated fair value ~2,350–2,400 ₹, suggesting mild overvaluation at current price.

🏢 Business Model & Competitive Advantage:

Angel One operates in financial services, focusing on stockbroking, wealth management, and fintech solutions. Competitive advantage lies in strong brand presence, digital platforms, and high ROE/ROCE. Its scalable model and retail investor penetration drive profitability, though debt levels and valuation premiums warrant caution.

📈 Entry Zone & Long-Term Guidance:

- Entry Zone: Attractive accumulation range between 2,350–2,400 ₹.

- Long-Term Holding: Strong fundamentals, high return ratios, and sector growth make Angel One suitable for long-term investors, though volatility and debt require careful monitoring.

Positive

• High ROCE (26.3%) and ROE (28.3%) indicate strong profitability and efficiency.
• EPS of 94.2 ₹ reflects robust earnings power.
• Dividend yield of 1.89% provides shareholder returns.
• Strong brand presence in financial services and fintech.

Limitation

• Quarterly profit variation (-46%) indicates earnings volatility.
• P/E ratio (26.8) above industry average (20.7), suggesting premium valuation.
• Debt-to-equity at 0.76 indicates moderate leverage risk.
• Technical weakness: RSI at 39.7 and MACD (-30.2) reflect bearish sentiment.

Company Negative News

• FII holdings decreased (-1.55%), showing reduced foreign investor confidence.
• DII holdings decreased (-1.56%), showing reduced domestic institutional support.
• MACD (-30.2) indicates bearish technical trend.

Company Positive News

• Quarterly PAT growth shows operational strength despite volatility.
• Dividend yield ensures consistent shareholder returns.
• Strong retail investor penetration and digital platform adoption.

Industry

• Financial services sector supported by rising retail participation and digital adoption.
• Industry PE at 20.7 indicates moderate valuation compared to Angel One’s premium.
• Sector growth driven by fintech innovation and increasing investor base.

Conclusion

⚖️ Angel One demonstrates strong fundamentals with high ROE, ROCE, and robust earnings. While valuations are slightly stretched and debt levels need monitoring, sector tailwinds and digital adoption make it attractive for long-term investors. Accumulation near 2,350–2,400 ₹ is recommended for value-conscious entry, with potential for steady compounding returns in financial services.