Mehabe score: 5 G Factor: 3 Piotski Score: 4 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 4.
Description
Angel Broking is an Indian stockbroker firm established in 1987. The company is a member of the Bombay Stock Exchange, National Stock Exchange of India, National Commodity & Derivatives Exchange Limited and Multi Commodity Exchange of India Limited. It is a technology-led financial services company providing broking and advisory services, margin funding, loans against shares (through one of their Subsidiaries, AFPL) and financial products distribution to their clients under the brand “Angel Broking”. [1]Site:ANGELBRKGMain Symbol:ANGELBRKG
Stock trades at 1398.0, above its 50dma 1191.48. It also trades above its 200dma 814.35. The stock remains bullish on techicals
The 52 week high is at 1484.00 and the 52week low is at 222.20
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
– has delivered good profit growth of 56.56% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 27.80%
Weakness
– Stock is trading at 10.21 times its book value
-Promoter holding has decreased over last quarter: -0.49%
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 22.4x. SBI Cards trades at the industry’s max P/E of 115.93x. ANGELBRKG trades at a P/E of 31.4x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 6.0. ANGELBRKG has a G-Factor of 3 and Piotski scoreof 4.
– Average 1 month return for industry is 3.9%. The max 1- month return was given by Angel Broking: a return of 14.01 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 527.0 cr compared to Rs 310.0 cr for period ended Sep 2020, a rise of 70.0%
Operating Profits reported at Rs 191.0 cr for period ended Sep 2021 vis-vis 110.0 for period ended Sep 2020 .
Operating Margins expanded 75.9 bps for period ended Sep 2021 vis-vis Sep 2020 .
The EPS for Sep 2021 was Rs 16.24 compared to Rs 14.73 for previous quarter ended Jun 2021 and Rs 9.11 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1705.0 cr for period ended TTM vis-vis sales of Rs 1289.0 cr for the period ended Mar 2021, a healthy growth of 24.4%. The 3 year sales cagr stood at 29.9%.
Net Profit reported at Rs 431.0 cr for period ended TTM vis-vis sales of Rs 297.0 cr for the period ended Mar 2021, rising 31.1%.
Company recorded a healthy Net Profit CAGR of 75.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 35.0% compared to 24.0% over the last 3 Years. – The stock has given a return of 522% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 90% vis-vis a compounded sales growth of 19% over the last 3 Years. – The compounded profit growth on a TTM basis is 198% vis-vis a compounded profit growth of 40% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 4.66% vis-vis 4.7% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 43.4% vis-vis 41.76% for Jun 2021
Conclusion
– is expected to give good quarter
– has delivered good profit growth of 56.56% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 27.80% – Stock is trading at 10.21 times its book value
-Promoter holding has decreased over last quarter: -0.49%
– might be capitalizing the interest cost
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 1191.48 and is trading at 1398.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
