HDFC Securities Initiates "Buy" On This Financial Services Stock, Sees 55% Strong Upside

HDFC Securities has come with a "Buy" call on Angel One Ltd. with a target price of Rs 1800/share. The brokerage sees a potential upside of up to 55% from its current level if purchased at the current market price. Angel One is midcap Financial Services sector stock operating as stock broking in India.

Current Market Price, 52 Week Low & high, & Returns

The stock last traded at Rs 1,162.85/share on NSE. It hit the 52 week low on March 1, 2023, at Rs 999/share and 52 week high on April 2022 at Rs 2,022/share, respectively. Since 5 October 2020, its listing date, it has delivered a multibagger return of 321.63 crore. In the past 1 week, it delivered 2.73% positive return and 14.06% in 1 month, respectively. It gave 24.33% negative return in the past 1 year.

Traded Ex-Dividend

On Friday, 31st March 2023 the stock traded ex-dividend. The Board of Directors of Angel One Ltd. on March 22, 2023, approved and declared the 4th interim dividend of Rs 9.60 per equity share for the FY 2022-23.

According to the exchange filing by Angel One Ltd., the dividend shall be paid on or before April 20, 2023 to those members, whose names appear on the Register of members or in records of depositories as beneficial owners of the shares as on Friday, March 31, 2023, which is the record date fixed for the purpose.

Transient relief for non-bank-owned brokers

According to HDFC Securities, The SEBI, in its Board meeting, dated 29th March 2023, delivered a softer-thananticipated verdict on the proposed implementation of upstreaming of client funds aside from approving optional ASBA for secondary markets. "While the decision on upstreaming of client funds appears to offer a transient relief to standalone brokers (non-bank owned), we expect the SEBI to gradually nudge towards mandatory adoption of ASBA for secondary trades, flushing the excess float out of the broking channel. The hits to float income notwithstanding, we believe that dominant FinTech discount broking franchises have sufficient levers to offset this negative impact. Given the flat-fee model, ANGELONE is one of the best bets on the secular growth story in Indian capital markets and remains our high-conviction BUY. At CMP, we believe the stock is dislocated - we maintain BUY with an unchanged target price of INR1,800 (15x Sep-24 EPS)," the brokerage has said.
Disclaimer
The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.