Angel One, a leading financial services company, is poised for significant growth according to Motilal Oswal Financial Services. With a projected 24% upside and a target price of ₹3,600, the company’s expansion into new business segments presents promising opportunities for investors. The diversification strategy, focusing on wealth management, AMC, and loan distribution, is expected to generate substantial revenues of ₹250-300 crore by FY27.
Table of Contents
Angelone : New Business Ventures
- Exclusive focus on passive investment products
- Strategic positioning in less competitive space
- Long-term revenue potential
- Measured approach to market entry
Loan Distribution Services
- Partnerships with three NBFCs
- ₹3.6 billion in loans distributed (2QFY25)
- Data science and machine learning implementation
- Conservative growth approach
- Plans for additional banking partnerships
Wealth Management Division
- ₹2.5 billion capital infusion
- Experienced management team
- Strong RM recruitment drive
- “Phygital” service model
- Strategic presence in tier 2 cities
Core Business Strategy
Customer-Centric Approach
- Maximizing customer Lifetime Value (LTV)
- Leveraging 27.5 million customer base
- Activating dormant accounts
- Data-driven product offerings
- Enhanced customer engagement
Market Performance
Share Price Analysis
- 1.5% increase in past month
- 10-14% growth over 3-6 months
- Current trading range: ₹2,894-2,954
- Impact of F&O regulations assessed at 13-14%
Growth Drivers
- Revenue diversification
- Strong foundation in new segments
- Expanded distribution channels
- Enhanced customer value proposition
- Strategic market positioning
Investment Perspective
The combination of strategic expansion, strong customer base, and innovative “phygital” approach positions Angel One for sustainable growth. While F&O regulations present near-term challenges, the company’s proactive diversification efforts and focus on customer value creation provide a solid foundation for long-term success. Investors should monitor the execution of these initiatives and the realization of projected revenue targets from new business segments.
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FAQs
Q1: What is the target price set by Motilal Oswal for Angelone?
Motilal Oswal has set a target price of ₹3,600 for Angel One, representing a 24% upside potential from current levels. This target is based on 16x Sep’26E EPS and factors in the company’s expansion into new business segments.
Q2: How is Angelone diversifying its revenue streams?
Angel One is diversifying through three main channels: wealth management services through a new subsidiary, AMC business focusing on passive investment products, and loan distribution services in partnership with NBFCs and banks. These initiatives are expected to contribute ₹250-300 crore to revenues by FY27.