Angel One Q3 Results Review - Strong Performance Continues: ICICI Securities

ICICI Securities Report

Angel One Ltd. continued with its strong performance in Q3 FY23 in terms of client additions (average of ~1 million per quarter in nine months-FY23), growth in the number of orders (average monthly run-rate of ~74 million in nine months-FY23) and cost discipline (total ‘opex to sales’ of 48% in nine months-FY23).

These strides are reflected in 9.5% and 11% increase in our earnings per share estimates for FY23E and FY24E respectively. Our optimism has also been inspired by the robust growth in overall equity option volumes on NSE (126% compound annual growth rate over past two years).

We remain positive on Angel One considering its track record (~three times growth in number of orders over past two years) and strong position (21.5% retail volume share as of Q3 FY23).

Risks include sharp drop in market volumes and any regulatory action to curb volume growth (especially in equity options). We factor-in a 19% earnings CAGR over FY22-FY24E and expect profit after tax of Rs 9.4 billion in FY24E.

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