Angel One Receives 'Buy' Rating from MarketsMOJO, Shows Strong Long-Term Growth

Oct 17 2024 08:21 PM IST
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Angel One, a leading finance and NBFC company, has received a 'Buy' rating from MarketsMojo on October 17, 2024. The company has shown strong long-term growth, with an average ROE of 40.31% and positive results in September 2024. Technical indicators are also bullish. Institutional holdings at 29.38% indicate confidence in the company. However, the stock has a high valuation and investors should be aware of associated risks.
Angel One, a leading finance and NBFC company, has recently received a 'Buy' rating from MarketsMOJO on October 17, 2024. This upgrade is based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 40.31%.

The company has shown healthy long-term growth, with an annual growth rate of 55.20% in Net Sales and 84.31% in Operating profit. In addition, the company declared very positive results in September 2024, with a growth in Net Profit of 44.63%. This positive trend has been consistent for the last 14 quarters, with the company's highest NET SALES(Q) at Rs 1,514.71 cr and PBDIT(Q) at Rs 671.83 cr. The OPERATING PROFIT TO NET SALES(Q) is also at its highest at 44.35%.

Technically, the stock is in a mildly bullish range, with an improved trend from sideways on October 11, 2024, generating a return of 15.64% since then. Multiple factors such as MACD, Bollinger Band, KST, and OBV are bullish for the stock.

One of the key strengths of Angel One is its high institutional holdings at 29.38%. These investors have better capability and resources to analyze the fundamentals of companies, making their confidence in Angel One a positive sign for retail investors.

The company has consistently delivered strong returns over the last 3 years, outperforming BSE 500 in each of the last 3 annual periods and generating a return of 48.26% in the last 1 year.

However, there are some risks associated with investing in Angel One. With an ROE of 24.9, the company has a very expensive valuation with a 5.5 Price to Book Value. Additionally, while the stock has generated a return of 48.26% in the past year, its profits have only risen by 29%, resulting in a PEG ratio of 1.1.

Overall, Angel One is a strong and promising company in the finance and NBFC industry, with a positive outlook for long-term growth and consistent returns. Investors should consider the risks associated with the stock before making any investment decisions.
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