ANGELONE - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 4.1
| Stock Code | ANGELONE | Market Cap | 24,357 Cr. | Current Price | 2,680 ₹ | High / Low | 3,285 ₹ |
| Stock P/E | 28.6 | Book Value | 642 ₹ | Dividend Yield | 1.79 % | ROCE | 26.3 % |
| ROE | 28.3 % | Face Value | 10.0 ₹ | DMA 50 | 2,528 ₹ | DMA 200 | 2,543 ₹ |
| Chg in FII Hold | -0.66 % | Chg in DII Hold | 3.24 % | PAT Qtr | 301 Cr. | PAT Prev Qtr | 236 Cr. |
| RSI | 57.7 | MACD | 11.0 | Volume | 14,34,293 | Avg Vol 1Wk | 19,47,964 |
| Low price | 1,941 ₹ | High price | 3,285 ₹ | PEG Ratio | 1.12 | Debt to equity | 0.76 |
| 52w Index | 55.0 % | Qtr Profit Var | 0.00 % | EPS | 93.9 ₹ | Industry PE | 20.0 |
📊 Analysis: ANGELONE demonstrates strong fundamentals with ROE at 28.3% and ROCE at 26.3%, reflecting excellent capital efficiency. Debt-to-equity at 0.76 is on the higher side but manageable. EPS of ₹93.9 supports profitability, and dividend yield of 1.79% adds decent income potential. The P/E of 28.6 is above the industry average of 20.0, suggesting premium valuation. The PEG ratio of 1.12 indicates fair valuation relative to growth. Quarterly PAT remained stable (301 Cr vs 236 Cr), showing earnings consistency. Technicals are supportive: RSI at 57.7 (neutral to bullish), MACD positive (11.0), and price above DMA 50 and DMA 200, signaling strength. Overall, the stock is a solid candidate for long-term investment.
💡 Entry Price Zone: Ideal accumulation range is between ₹2,500 – ₹2,650, closer to DMA support levels, offering better risk-reward.
⏳ Exit / Holding Strategy: Long-term investors (3–5 years) can hold given strong ROE/ROCE and consistent profitability. Exit or partial profit booking should be considered near ₹3,200–₹3,300 resistance levels if valuations stretch further without earnings growth acceleration.
Positive ✅
- Strong ROE (28.3%) and ROCE (26.3%) highlight excellent capital efficiency.
- Dividend yield of 1.79% provides decent income support.
- EPS of ₹93.9 supports profitability.
- DII holdings increased by 3.24%, reflecting strong domestic institutional confidence.
- Technical indicators (RSI, MACD) show bullish momentum.
Limitation ⚠️
- P/E of 28.6 is higher than industry average (20.0).
- Debt-to-equity ratio of 0.76 adds financial risk.
- Quarterly PAT growth stagnated (0% variation).
- FII holdings decreased (-0.66%), showing reduced foreign investor confidence.
Company Negative News 📉
- No major negative news reported, but high debt and premium valuation remain concerns.
Company Positive News 📈
- Strong fundamentals with high ROE and ROCE.
- Stable quarterly profits support earnings consistency.
- DII confidence increased with higher holdings.
- 52-week index return of 55% highlights strong past performance.
Industry 🌐
- Industry P/E at 20.0 indicates moderate valuation levels.
- Financial services sector benefits from rising demand in brokerage, wealth management, and advisory services.
Conclusion 📝
ANGELONE is a fundamentally strong company with excellent ROE/ROCE, consistent profitability, and decent dividend yield. While valuations are slightly stretched and debt levels are moderate, long-term investors can accumulate near ₹2,500–₹2,650 for better risk-reward. Existing holders should maintain a 3–5 year horizon, with partial profit booking near ₹3,200–₹3,300 resistance levels if earnings growth does not accelerate further.