Stock in Focus: Motilal Oswal Financial Services has forecast a significant 24% upside for Angel One from the current levels, setting a target price of ₹3,600. The firm anticipates that the company’s expansion into new business segments like wealth management, asset management companies (AMC), and loan distribution could collectively drive revenues between ₹250-300 crore by FY27. This growth is expected to be a key factor in enhancing Angel One’s overall financial performance in the coming years.

“We present the sizing analysis for the company’s new segments – Loan Distribution, and Wealth Management, as well as the scale-up of distribution at the AP Channel. Cumulatively, these segments can add ₹2.5-3.0 billion to the revenues in FY27. We maintain our BUY recommendation with a one-year target price of ₹3,600 (16x Sep’26E EPS),” the brokerage said.

AMC Business

The brokerage firm (Angel One) has recently obtained regulatory approval for its Asset Management business. In this segment, it will focus solely on selling passive investment products, as the active investment space is more mature and competitive. Over the medium term (approximately 5 to 7 years), the share of non-brokerage business is expected to increase significantly as various business lines become profitable. Although the associated costs have been included in their estimates, the potential revenue has not yet been accounted for, as highlighted by the brokerage.

Loan Distribution

In addition, the brokerage company (Angel One) has recently entered the loan distribution market by partnering with three non-banking financial companies (NBFCs), with plans to include additional banks and NBFCs in the future.

As of 2QFY25, they have distributed ₹3.6 billion in loans. This initiative has been in progress for several quarters, and the company is utilising its expertise in data science and machine learning to identify the right customer base. Angel One is taking a conservative approach and aims to grow this business in a measured manner, the brokerage said in its report.

Wealth Management

The brokerage firm has established a separate subsidiary to launch its wealth management operations, recently infusing ₹2.5 billion in capital. The key to success in the wealth management business lies in both people and products. Regarding personnel, Angel One has recruited an experienced top management team that is in the process of building a robust relationship manager (RM) force.

Their “phygital” approach—combining physical and digital services—along with a strong brand presence in tier 2 cities, positions Angel One for success in this sector. For example, Dezerv, utilising a digital strategy, achieved ₹50 billion in assets under management (AUM) within just three years of operation, explained Motilal Oswal in its report.

Angel One – Core Strategy

According to the brokerage, Angel One’s core business strategy focuses on maximizing the Lifetime Value (LTV) of its customers. Currently, out of 27.5 million customers, only 7.4 million are active. With a wealth of data on customer behavior and financial capacity, Angel One is well-positioned to enhance customer LTV by offering a broader range of financial products.

According to the brokerage, Angel One share price has remained within a narrow range over the past few months due to concerns regarding the impact of new F&O regulations. During its 2QFY25 results conference call, management indicated that the effect on revenue would be approximately 13-14%.

According to Trendlyne data, the Angel One share price has increased by approximately 1.5% over the past month and by about 10-14% over the last three to six months. Angel One Share Price today opened at ₹2,899 apiece on the NSE, the stock touched an intraday high of ₹2,954 per share and low of ₹2,894.10 apiece.

“While concerns about F&O regulations have persisted over the past year, Angel One has been actively investing in diversifying its revenue base, building a foundation for loan distribution, wealth management, and AMC, and scaling up its assisted partner channel to improve the LTV of its customer base,” the brokerage said.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.