Angel One has so far given 340 percent return to investors in comparison to its issue price. At the same time, the brokerage house on this stock is also looking bullish for the future.
Block Buster IPO: Some IPOs that get listed in the stock market within 1 to 1.5 years have proved to be blockbusters for investors. There have been many IPOs which have given multiple times returns compared to the issue price during this period. Among them, one of the stock brokerage firm Angel One. Angel One has so far given 340 percent return to investors in comparison to its issue price. At the same time, the brokerage house on this stock is also looking bullish for the future. Brokerage house Motilal Oswal has given a target of Rs 1900 while advising investment in the stock. Let us inform that this stock has been listed in the market on 5 October 2020 i.e. about 16 months back.
Growing company’s market share
Brokerage house Motilal Oswal says that Angel One has improved its market share in Average Daily Turnover (ADTO). The company’s F&O market share has grown to 23.8 per cent in 1QFY22 from 3.3 per cent in 1QFY20. The company’s stock had fallen 20.3 percent in September 2021, since then it has recovered 21 percent. The company’s market share in the cash segment has increased to 18.4 per cent in 2QFY21 from 13.7 per cent in 1QFY20. The brokerage believes that this recovery is going to continue even further.
focus on digitization
According to the brokerage, the company will get the benefit of the focus on digitalisation. The company appointed Narayan Gangadhar as CEO in April 2021, who has long experience of working in tech edge companies. He has worked with Microsoft, Google, Uber and Amazon. The company will get the benefit of this experience. The company has also strengthened the digital tech team.
Benefits of fast in demat account
The company will also benefit from the rapidly increasing number of demat accounts. The number of demat accounts in India has gone up to 7.70 crore by November 2021. Whereas in FY18 it was 3.30 crores. That is, the number of demat accounts has increased more than double during this period. IPO of LIC and some other big companies are to come ahead, in such a situation its number can increase rapidly. Brokerage companies will get the benefit of this.
How much return can I get
The brokerage says that the valuation of Angel One is attractive. The Company’s Revenue/PAT CAGR is expected to be 18%/20% during FY22-24E. The P/E of the stock is at a multiple of 13 in FY24E terms. The brokerage house has given a target of Rs 1900 in the stock, which is 42 percent more than the current price of Rs 1345.
340% return from issue price
Angel One was listed on the stock market on 5 October 2020. The company had fixed the issue price at Rs 306. Whereas its listing was around Rs 275 with a discount of about 10 percent. On the day of listing, it closed at Rs 275.85. But now the share has reached a price of Rs 1345, which is 340 percent more than the issue price.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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