Current Rating and Its Significance
MarketsMOJO currently assigns Angel One Ltd a 'Hold' rating, reflecting a balanced outlook on the stock. This rating suggests that investors should maintain their existing positions rather than aggressively buying or selling. The 'Hold' status indicates that while the company demonstrates certain strengths, there are also areas of caution that investors need to consider before making further investment decisions.
Quality Assessment
Angel One Ltd’s quality grade is classified as 'good', supported by its strong long-term fundamental strength. As of 11 January 2026, the company maintains an impressive average Return on Equity (ROE) of 30.19%, signalling efficient utilisation of shareholder capital over time. This robust ROE is a positive indicator of the company’s ability to generate profits relative to equity, which is a key metric for assessing corporate health and management effectiveness.
Additionally, the company has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 38.34% and operating profit growing at 37.53%. These figures highlight Angel One’s capacity to expand its revenue base and improve operational efficiency over the years, reinforcing the 'good' quality grade.
Valuation Perspective
The valuation grade for Angel One Ltd is currently 'fair'. As of 11 January 2026, the stock trades at a Price to Book (P/B) ratio of 3.6, which is moderate for a smallcap company in the capital markets sector. The company’s ROE of 13.5% relative to this valuation suggests that the stock is priced reasonably, neither significantly undervalued nor overvalued.
Investors should note that over the past year, the stock has generated a return of -11.14%, underperforming the broader market benchmark BSE500, which has delivered a positive 6.14% return in the same period. This underperformance, combined with a fair valuation, supports the cautious stance implied by the 'Hold' rating.
Financial Trend Analysis
Despite strong historical growth, the company’s recent financial trend has been negative. The latest data as of 11 January 2026 shows that Angel One Ltd has reported negative results for three consecutive quarters. Specifically, net sales for the nine months ended stand at ₹3,398.30 crores, reflecting a decline of 20.55% compared to previous periods.
Profitability metrics have also deteriorated, with Profit Before Tax (PBT) less other income for the latest quarter at ₹291.56 crores, down 13.8% relative to the previous four-quarter average. Similarly, Profit After Tax (PAT) for the quarter is ₹211.73 crores, a decline of 14.8%. These figures indicate a weakening financial trend that investors should monitor closely.
Technical Outlook
The technical grade for Angel One Ltd is mildly bearish as of 11 January 2026. The stock has experienced short-term price declines, with a one-day drop of 3.24% and a one-month decline of 7.89%. However, it has shown some recovery over three months with a 3.05% gain. The six-month performance remains negative at -14.72%, and the year-to-date return is slightly negative at -0.46%.
These mixed technical signals suggest some volatility and uncertainty in the stock’s price movement, which aligns with the 'Hold' rating that advises caution rather than aggressive trading.
Additional Considerations: Promoter Confidence and Market Performance
Another factor influencing the current rating is the reduction in promoter confidence. Promoters have decreased their stake by 6.58% over the previous quarter and currently hold 28.97% of the company. Such a decline in promoter holding may be interpreted by investors as a signal of reduced confidence in the company’s near-term prospects.
Moreover, Angel One Ltd has underperformed the market significantly over the past year. While the BSE500 index has delivered a 6.14% return, Angel One’s stock has declined by 11.14%, reflecting challenges in maintaining investor confidence and market momentum.
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What the Hold Rating Means for Investors
For investors, the 'Hold' rating on Angel One Ltd suggests maintaining current holdings without initiating new purchases or sales. The company’s strong historical fundamentals and reasonable valuation provide a foundation for potential recovery, but recent negative financial trends and technical signals warrant caution.
Investors should closely monitor upcoming quarterly results and any changes in promoter shareholding to reassess the stock’s outlook. The mildly bearish technical stance also advises a watchful approach to price movements, especially given the stock’s underperformance relative to the broader market.
In summary, Angel One Ltd’s current 'Hold' rating reflects a balanced view that recognises both the company’s strengths and the challenges it faces. This rating encourages investors to stay informed and patient while awaiting clearer signs of financial and market improvement.
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