Motilal Oswal's research report on ANGEL One
Angel One (Angel)’s PAT grew 24% QoQ and 101% YoY to INR2b (17% beat) in 4QFY22. The beat on profitability was driven by an 11% beat on operating revenue, which rose 16% QoQ and 77% YoY to INR4.1b. Key contributors were a 13% beat on net revenue from the Broking segment and a 6% beat on net interest income. The active client ratio improved substantially in 4QFY22 to 40.2% from 39.7% in 3Q. Number of orders rose to 221m in 4QFY22 from 180m in 3Q. Angel’s operating expense stood in line at INR2.3b. CIR improved substantially to 45.1% (est. 49.3%) v/s 49% in 3QFY22 and 51% in 4QFY21. For FY22, Angel reported revenue of INR16.8b (+87.6% YoY), while its PAT more than doubled (+109.8% YoY) to INR6.3b. The cost-to-income ratio stood at 49.2% v/s 52.1% in FY21.
Outlook
We raise our earnings estimates for Angel by 7%/11% in FY23/FY24, respectively, backed by a higher-than-expected revenue and strong margin performance in 4QFY22. We maintain our BUY rating with a revised TP of INR2,300 (premised on 20x FY24E EPS).
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