ANGELONE - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.1

📊 Fundamental Analysis Summary

Angel One (ANGELONE) is a well-established player in the financial services and broking space, showing strong capital efficiency and decent valuation. While recent quarterly profit has dipped sharply, long-term metrics like ROE, ROCE, and institutional interest remain solid. The stock is currently trading below key moving averages and near oversold territory, offering a potential accumulation opportunity for long-term investors.

Metric Value Interpretation

P/E Ratio 24.0 Reasonable — below industry average, offers value

PEG Ratio 1.03 Fairly valued — growth aligned with price

ROE / ROCE 27.1% / 25.8% Strong — efficient capital deployment

Dividend Yield 1.82% Attractive — adds passive income potential

Debt-to-Equity 0.61 Moderate — acceptable for financial services

EPS ₹110 Robust — supports valuation

PAT Growth (QoQ) -34.9% Weak — short-term earnings volatility

Book Value ₹623 Price-to-book ~4.2× — fair for high ROE stock

RSI / MACD 39.6 / -46.4 RSI oversold; MACD negative — potential bottoming

DMA 50 / 200 ₹2,767 / ₹2,647 Price below both — bearish short-term trend

52W Price Range ₹1,941 – ₹3,503 Currently at 44.2% of 52W high — attractive zone

FII/DII Change +1.61% / +2.16% Positive — institutional accumulation

📉 Ideal Entry Price Zone

Entry Zone: ₹2,450 – ₹2,600

RSI near 40 and price below DMA 200 — good accumulation zone.

Avoid entry above ₹2,800 until earnings stabilize.

🧭 Exit Strategy & Holding Period

Holding Period

5+ years — suitable for long-term compounding through high ROE and dividend yield.

Exit Strategy

Exit partially if PEG rises above 1.5 or ROE drops below 20%.

Consider trimming if price exceeds ₹3,300 without EPS or PAT recovery.

Key Metrics to Monitor

ROE consistently above 25%

PEG ratio staying near or below 1.0

PAT growth resumes > 15% YoY

EPS trending above ₹120

🧠 Final Thoughts

Angel One offers a compelling mix of value, growth, and income. Despite short-term earnings pressure, its fundamentals and institutional interest suggest long-term potential. Ideal for investors seeking exposure to financial services with a disciplined entry strategy and a focus on capital efficiency.

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