ANGELONE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | ANGELONE | Market Cap | 28,119 Cr. | Current Price | 309 ₹ | High / Low | 330 ₹ |
| Stock P/E | 27.5 | Book Value | 68.1 ₹ | Dividend Yield | 1.55 % | ROCE | 15.6 % |
| ROE | 17.3 % | Face Value | 1.00 ₹ | DMA 50 | 272 ₹ | DMA 200 | 258 ₹ |
| Chg in FII Hold | 0.36 % | Chg in DII Hold | 0.77 % | PAT Qtr | 351 Cr. | PAT Prev Qtr | 301 Cr. |
| RSI | 62.2 | MACD | 19.4 | Volume | 42,17,611 | Avg Vol 1Wk | 47,01,477 |
| Low price | 209 ₹ | High price | 330 ₹ | PEG Ratio | 5.11 | Debt to equity | 1.28 |
| 52w Index | 82.3 % | Qtr Profit Var | 95.0 % | EPS | 11.2 ₹ | Industry PE | 18.5 |
📊 Financials: ANGELONE shows decent fundamentals with ROE at 17.3% and ROCE at 15.6%, reflecting moderate efficiency. Debt-to-equity ratio of 1.28 indicates relatively high leverage, which adds financial risk. EPS of ₹11.2 supports earnings visibility, with PAT growth from ₹301 Cr. to ₹351 Cr. (+95% quarterly variation) showing strong momentum.
💹 Valuation: Current P/E of 27.5 is above industry average (18.5), suggesting premium valuation. PEG ratio of 5.11 highlights expensive growth prospects. P/B ratio (~4.5) is stretched compared to book value ₹68.1, limiting intrinsic value comfort.
🏢 Business Model: ANGELONE operates in financial services and brokerage, benefiting from rising retail participation in capital markets. Competitive advantage lies in digital platforms and client acquisition. However, high leverage and premium valuations reduce margin of safety.
📈 Entry Zone: Fair entry closer to ₹270–290, near DMA 50 (₹272) and DMA 200 (₹258). Current price ₹309 is above fair accumulation zone, making staggered buying advisable only on corrections.
📌 Long-Term Holding: Suitable for medium-term investors (2–3 years). Strong earnings momentum supports holding, but high debt and premium valuations require cautious monitoring. Partial profit booking near ₹325–330 resistance is advisable.
Positive
- Strong PAT growth (+95% quarterly variation)
- ROE (17.3%) and ROCE (15.6%) reflect decent efficiency
- Dividend yield of 1.55% adds shareholder value
- Institutional buying: FII (+0.36%) and DII (+0.77%) increased holdings
Limitation
- High debt-to-equity ratio (1.28)
- P/E (27.5) above industry average (18.5)
- PEG ratio of 5.11 indicates expensive growth
- EPS of ₹11.2 is modest relative to valuation
Company Negative News
- High leverage increases financial risk
Company Positive News
- Strong quarterly PAT growth from ₹301 Cr. to ₹351 Cr.
- Institutional accumulation supports investor confidence
Industry
- Financial services sector benefits from rising retail participation
- Industry P/E at 18.5, lower than company’s valuation
Conclusion
ANGELONE is a moderately attractive candidate with strong earnings momentum and decent efficiency, but high leverage and premium valuations limit upside. Entry is recommended near ₹270–290 for margin of safety. Medium-term investors can hold with partial exits near ₹325–330 resistance unless debt levels reduce and profitability improves further.