ANGELONE

Motilal Oswal is bullish on Angel One recommended buy rating on the stock with a target price of Rs 2800 in its research report dated April 17, ***** One (ANGELONE) reported a total income of INR8.3b (-16% QoQ), which was broadly in line with our estimate. F&O regulations as well as weak market activity in 4QFY25 adversely impacted the company's sequential growth. For FY25, total income grew 24% YoY to INR41.3b. While total operating expenses were flat sequentially, excluding a onetime reversal of variable employee pay (INR640m) and IPL costs (INR344m), the company's opex jumped QoQ, indicating a spike in customer acquisition costs. PAT at INR1.7b declined 38% QoQ (13% miss). For FY25, ANGELONE's PAT grew 4% YoY to INR11.7b. The number of orders declined 22% QoQ to 327m. The average down sequentially to INR1b from INR2.4b in 3QFY25. The revenue curve has picked up in Mar'25, and a similar trajectory is being witnessed in Apr 25. Management expects the impact of F&O regulations to gradually normalize, which would lead to an operating margin of 40-45% in 4QFY26.