Inventory in Focus: Angel One set for progress with new enterprise phase, says Motilal Oswal; predicts 24% upside

Inventory in Focus: Motilal Oswal Monetary Companies has forecast a major 24% upside for Angel One from the present ranges, setting a goal worth of ₹3,600. The agency anticipates that the corporate’s growth into new enterprise segments like wealth administration, asset administration firms (AMC), and mortgage distribution may collectively drive revenues between ₹250-300 crore by FY27. This progress is anticipated to be a key consider enhancing Angel One’s total monetary efficiency within the coming years.

“We current the sizing evaluation for the corporate’s new segments – Mortgage Distribution, and Wealth Administration, in addition to the scale-up of distribution on the AP Channel. Cumulatively, these segments can add ₹2.5-3.0 billion to the revenues in FY27. We keep our BUY advice with a one-year goal worth of ₹3,600 (16x Sep’26E EPS),” the brokerage stated.

AMC Enterprise

The brokerage agency (Angel One) has not too long ago obtained regulatory approval for its Asset Administration enterprise. On this phase, it’s going to focus solely on promoting passive funding merchandise, because the lively funding house is extra mature and aggressive. Over the medium time period (roughly 5 to 7 years), the share of non-brokerage enterprise is anticipated to extend considerably as numerous enterprise traces turn out to be worthwhile. Though the related prices have been included of their estimates, the potential income has not but been accounted for, as highlighted by the brokerage.

Mortgage Distribution

As well as, the brokerage firm (Angel One) has not too long ago entered the mortgage distribution market by partnering with three non-banking monetary firms (NBFCs), with plans to incorporate extra banks and NBFCs sooner or later.

As of 2QFY25, they’ve distributed ₹3.6 billion in loans. This initiative has been in progress for a number of quarters, and the corporate is utilising its experience in knowledge science and machine studying to determine the suitable buyer base. Angel One is taking a conservative method and goals to develop this enterprise in a measured method, the brokerage stated in its report.

Wealth Administration

The brokerage agency has established a separate subsidiary to launch its wealth administration operations, not too long ago infusing ₹2.5 billion in capital. The important thing to success within the wealth administration enterprise lies in each individuals and merchandise. Concerning personnel, Angel One has recruited an skilled prime administration group that’s within the means of constructing a sturdy relationship supervisor (RM) drive.

Their “phygital” method—combining bodily and digital companies—together with a robust model presence in tier 2 cities, positions Angel One for achievement on this sector. For instance, Dezerv, utilising a digital technique, achieved ₹50 billion in belongings below administration (AUM) inside simply three years of operation, defined Motilal Oswal in its report.

Angel One – Core Technique

In keeping with the brokerage, Angel One’s core enterprise technique focuses on maximizing the Lifetime Worth (LTV) of its prospects. At the moment, out of 27.5 million prospects, solely 7.4 million are lively. With a wealth of information on buyer habits and monetary capability, Angel One is well-positioned to boost buyer LTV by providing a broader vary of economic merchandise.

In keeping with the brokerage, Angel One share worth has remained inside a slim vary over the previous few months as a result of issues relating to the affect of latest F&O rules. Throughout its 2QFY25 outcomes convention name, administration indicated that the impact on income can be roughly 13-14%.

In keeping with Trendlyne knowledge, the Angel One share worth has elevated by roughly 1.5% over the previous month and by about 10-14% over the past three to 6 months. Angel One Share Value right now opened at ₹2,899 apiece on the NSE, the inventory touched an intraday excessive of ₹2,954 per share and low of ₹2,894.10 apiece.

“Whereas issues about F&O rules have endured over the previous yr, Angel One has been actively investing in diversifying its income base, constructing a basis for mortgage distribution, wealth administration, and AMC, and scaling up its assisted companion channel to enhance the LTV of its buyer base,” the brokerage stated.

Disclaimer: The views and proposals above are these of particular person analysts, specialists and broking firms, not of Mint. We advise buyers to test with licensed specialists earlier than making any funding selections.