🧐 At a Glance

Once the darling of retail stockbroking, Angel One scaled from dusty brokerage tables to app-store domination. But FY25 ended with declining profits, promoter stake dips, and shrinking margins. Yet, it still has a 5-year profit CAGR of 67%, 27% ROE, and offers a juicy 1.7% dividend yield. At ₹2,828 — is Angel now a fallen angel or still worth betting on?

📊 1. What Does Angel One Actually Do?

Angel One is India’s second-largest retail stockbroker by active clients. But that’s not all.

🧩 Business Segments:

• Broking & Distribution: Stock, commodity, currency, MTF
• Margin Lending: NBFC arm lends against shares
• Third-Party Product Distribution: MFs, insurance, IPOs
• Tech-Driven Trading: One of India’s top-rated trading apps
• New bets: AI-led advisory, smallcase-type products

It’s basically Zerodha with marketing, leverage, and dividends.

📈 2. 5-Year Journey: From Undercover to Unstoppable to Uncertain?

🏆 5-Year Sales CAGR: 48%
🏆 5-Year Profit CAGR: 67%

But FY25 growth slowed. Profits are flat, and March 2025 EPS fell to ₹19 from ₹47 in Sept 2024. That’s not a dip — it’s a tumble.

📉 3. What Went Wrong?

🧨 Q4 FY25 profit was ₹175 Cr — down 59% from Q2
📉 OPM collapsed to 32% in Q4
📉 Margins under pressure from:

• Increased competition (Zerodha + Groww = price war)
• Rising cost of client acquisition
• Interest cost up (loan book ballooned)

💥 Debtors improved (21 days vs 42 last year)
💥 But… Borrowings doubled to ₹3,414 Cr

⚠️ Revenue growth now needs higher volumes and higher leverage.

🏛️ 4. Promoter Holding Slipping = Good Sign or Red Flag?

• 👨‍👨‍👧 Promoters now own just 35.5% (down from 43.8% in 2022)
• 📉 FIIs also declining — from 17.2% in Mar ’23 to 13% now
• 📈 DIIs are steady (14.3%)
• 🤯 Public holding rising → now 37%

Looks like the big boys are easing out, and retailers are left holding the bag.

💰 5. Valuation: Still Reasonable?

Let’s break it down:

• Market Cap: ₹25,600 Cr
• TTM PAT: ₹1,172 Cr
• P/E: ~21.8x
• P/B: 4.5x (Book Value = ₹623)

💥 Compared to:

Angel is actually undervalued on a relative basis.

🎯 EduInvesting Fair Value Estimate

Let’s project FY26E profit at a flat ₹1,200 Cr.

• Base P/E: 18x → ₹21,600 Cr → ₹2,380/share
• Aggressive P/E: 22x → ₹26,400 Cr → ₹2,915/share

🎯 Fair Value Range = ₹2,380–₹2,915
(Current price = ₹2,828 → near upper range)

So unless earnings rebound fast, upside is capped.

💻 6. Tech Strength: Is Angel Still an App Powerhouse?

📱 1 Cr+ downloads on Play Store
👨‍💼 AI-powered advisory in beta
📊 Dashboard UX better than most

BUT:

• Groww and Zerodha eating market share
• Angel’s ARPU is higher due to margin products — but risky in volatile markets
• They’re trying to become a full-stack finlife platform — but face brand perception issues (still seen as “old-school”)

📦 7. Business Model Check: Scalable or Saturated?

🔄 Pros:

• High Operating Leverage
• Low incremental cost for new customers
• Diversification into lending

🚧 Cons:

• Heavily reliant on market activity
• Pressure on margins if trading slows
• Competitive fee compression

This is not HDFC Bank. This is trading-leveraged tech-broking — not exactly recession-proof.

🧠 Final Thoughts: Is Angel Still a Multibagger?

Angel One is:

• ✅ Consistently profitable
• ✅ Dividend-paying
• ✅ Tech-forward
• ⚠️ Facing growth saturation
• ⚠️ Losing promoter skin-in-the-game

If you’re in it — hold with caution, trail SL around ₹2,600
If you’re considering — wait for results on July 17

🧮 TL;DR (Too Lazy? Here’s the Juice)

• 💼 India’s #2 retail stockbroker with 5Y profit CAGR of 67%
• 💸 ROE = 27%, Dividend yield = 1.7%
• 📉 Q4 FY25 was rough — profit down, margins down
• 🎯 FV Range = ₹2,380–₹2,915
• ⚠️ Stock nearing upper end of valuation with no profit growth
• 🧘🏽‍♂️ Stay alert — not a blind buy at these levels

✍️ Written by Prashant | 📅 22 June 2025
📌 Tags: angel one, stockbroker india, trading apps, discount brokers, margin trading india, fintech broking, nifty500 stocks

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