Angel One (ANGELONE)

FairStock Score: 38/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

Strengths

• 5-year revenue CAGR of 17.52% shows strong past growth.
• Latest quarter net profit margin is roughly 20% (₹269 Cr on ₹1,335 Cr sales).
• ROCE of 25.80% indicates efficient capital deployment.
• Dividend yield of 2.06% provides some shareholder compensation.

Concerns

• Sales fell 14.56% and net profit fell 42.48%, showing sharp deterioration.
• Free cash flow is deeply negative at -₹4,253 Cr and EV/EBITDA is -486.06, implying negative EBITDA and poor cash conversion.
• Debt/Equity of 1.30 and Altman Z-score of 1.66 signal balance sheet stress.
• Price of ₹321 is far above the Graham Number of ₹111.78, leaving no margin of safety.

AI Analysis

Angel One is not the kind of business I would instinctively label a wonderful compounder. The stockbroking trade is inherently cyclical and competitive, and today's numbers confirm that. Sales have fallen 14.56% and net profit has dropped 42.48%, yet the market prices the stock at 27.55 times earnings. Graham would say the margin of safety is nowhere to be found: the Graham Number is only ₹111.78 against a price of ₹321.00, and the stated margin of safety is -108.63%. That is a valuation that assumes a quick recovery, not one that protects me if results stay weak. The past record has some merits. A five-year revenue CAGR of 17.52% and a latest-quarter profit margin of roughly 20% show Angel One can make money in good markets. ROCE of 25.80% is respectable, and the 2.06% dividend yield gives some return while waiting. But the financial health impresses me less. Free cash flow is deeply negative at -₹4,253 Cr, and the EV/EBITDA figure of -486.06 suggests earnings before interest, tax, depreciation and amortisation are negative. A business that cannot convert booked profit into cash demands extra scrutiny. Debt/equity of 1.30 and an Altman Z-score of 1.66 put it in a fragile zone; the Piotroski score of 5/9 is mediocre. Promoter holding of 28.87% is not the kind of owner-operator alignment I prefer. In short, this is a cyclical broker that has grown in the past but is currently shrinking and burning cash. At ₹321, I am being asked to pay a premium for a business whose recent trajectory is deteriorating. I would rather wait for a lower price, better cash generation, and proof that earnings have stabilised before channelling any of my capital into Angel One.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer