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Last week I took some shares of Angel One Ltd (Rs.2897) for some of my portfolio clients, who prefer to invest in quality counters. Let's do a brief analysis of the counter.

Introduction: Angel One Ltd (formerly known as Angel Broking Ltd) is one of India’s leading stockbroking firms, providing a wide range of financial services, including broking, advisory, margin trading, and financial product distribution. 

Established in 1996, the company has successfully transitioned into a fintech-- driven business, leveraging cutting - edge technology to provide seamless trading and investment experiences. With its robust digital presence and a client-first approach, Angel One has positioned itself as a key player in India’s growing financial services landscape. 

The company's consistent strong financial performance, coupled with its strategic focus on technology and customer experience, makes it an attractive investment opportunity.

Investment Rationale:

💢Expanding Client Base: Angel One has been consistent in acquiring new clients, particularly in the retail segment. With the growing financial literacy in India and increasing penetration of stock market participation, the company stands to benefit significantly.

💢Tech-Driven Growth: Angel One Ltd’s focus on leveraging Artificial Intelligence (AI) and Machine Learning (ML) for personalized offerings, automated trading tools, and user-friendly platforms has been instrumental in retaining and expanding its user base. 

Its "Angel One Super App" integrates multiple functionalities, making it a one-stop solution for investors and traders.

💢Consistent Revenue Streams: The company derives revenues from broking, interest on margin funding, distribution of financial products, and advisory services. With a diversified revenue model, Angel One is well-insulated from market volatility.

💢Favorable Industry Trends: India's equity market is growing rapidly, supported by favorable demographics, increased retail participation, and government policies promoting investment. Angel One is poised to capitalize on these tailwinds.

💢Recent Financials: Angel One’s recent quarterly and annual results underscore its strong financial health:

• Revenue Growth: The company has reported steady growth in total income, supported by increased brokerage income and higher client activity. In  Q2 FY24, Angel One Ltd posted a revenue growth of over 30% YoY and a net profit increase of 25% YoY, driven by higher client activity and improved operational efficiencies.
• Profit Margins: Angel One maintains healthy EBITDA and PAT margins, reflecting operational efficiency and effective cost management.
• Dividend Payout: The company has a history of rewarding shareholders with consistent and attractive dividends. The Dividend Payouts of Angel One Ltd changed from Rs.9.6 on Jan 24, 2023 to Rs.12.7 on Jan 23, 2024, representing a CAGR of 4.77% over 6 years.

Technical Analysis: The stock is trading above key moving averages, such as the 21 - day (2823.70), 50-day (2789.49),  and 200-day (2730.49) Exponential Moving Averages (EMA). This indicates long-term strength and suggests a buy-on-dips strategy for investors. The scrip will gain momentum once it closes above Rs.3056.58 with good volumes.

Moreover, the MACD indicator shows a bullish crossover, with the MACD line crossing above the signal line. This indicates upward momentum and strengthens the buy signal.

Also, the RSI for the scrip is hovering around 60-70, suggesting strong momentum without being overbought. It indicates room for further price appreciation.

Recent news: Angel One's wholly owned subsidiary, Angel One Asset Management Company has received approval from the SEBI to act as an asset management company for Angel One Mutual Fund.

Conclusion: Angel One's strong financial performance, technological advancements, and expanding client base position it well to capitalize on the growth potential of the Indian stock market.

From a technical standpoint, the stock exhibits strong bullish momentum, supported by favorable chart patterns and technical indicators.

For long-term investors and short-term traders alike, Angel One offers an attractive blend of growth potential and stability. 

Short-term traders can buy now at near the CMP of Rs.2897. Accumulate on dips upto Rs.2,720. Keep the stop-loss at ₹2,660. 

Finally, keep a trailing stop-loss of Rs.2,920 once the stock closes above Rs.2,980. Move the stop-loss further up to ₹3,050 when the price touches ₹3,140. Book profit at  Rs.3,200/Rs.3400.

While it's essential to conduct thorough research and consider market conditions before investing, the stock of Angel One Ltd appears to be a promising investment opportunity for both long-term and short-term investors.