EUR 120.00 For Business Accounts Only

MOSL: Morning India (10/November/21): 1. Angel One - Initiating Coverage (Leaner, stronger, faster – A transformed broker!); 2. India Strategy (The Eagel Eye); 3. Mahindra & Mahindra; 4. Britannia Ind.; 5. Bosc

MOrning India (10/November/21): 1. Angel One - Initiating Coverage (Leaner, stronger, faster – A transformed broker!); 2. India Strategy (The Eagel Eye); 3. Mahindra & Mahindra; 4. Britannia Ind.; 5. Bosch; 6. Aurobindo Pharma

 

Today’s top research idea

Angel One - Initiating Coverage: Leaner, stronger, faster – A transformed broker!

• Indian brokerage industry is at an inflection point wherein only 5.1% of the Indian population have a demat account v/s 13.7% in China and 32% in the US.
• Angel, with its transformational journey from being a traditional broker to adopting a completely digital model, offering a seamless online trading platform through its mobile app, website and call centre support is well placed to leverage on this growth opportunity and further strengthen its position.
• This transformation has been a key reason for its success so far wherein the market share in Equity ADTO has surged from 3.7% to 21.2% in a space of 10 quarters. It has emerged to be India's third-largest broker with 6.5m total clients and 2.5m active clients on the NSE.
• It has a market share of 9.3% in active clients on the NSE, which has increased from 4.8% in 1QFY20. We expect Angel to report revenue CAGR of 34% and PAT CAGR of 38% during FY21-24E.
• We initiate coverage on Angel One with a BUY rating and a one-year price target of INR1750 (20x Sep'23E).