External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>In its efforts to clamp down on the rising irrationality in option volumes (F&amp;O), the SEBI has directed exchanges and market infrastructure institutions (MII) to discontinue the practice of charging turnover-linked slab-wise fee structures, and levy uniform transaction charges instead</li><li>While exchanges currently levy regressive slab-wise fees (higher the turnover, lower the fees), brokers usually charge their customers at the highest prescribed slab rate, resulting in excess profit residing with brokers, especially discount brokers, which is accounted as “ancillary transaction income”</li><li>Our analysis of ANGELONE’s disclosures suggests that this revenue stream contributes ~8% to revenues and a material 20% to pre-tax profits, which is likely to be vulnerable to the SEBI’s “True to Label” mandate that calls for a complete pass-through from customers to MIIs</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In its efforts to clamp down on the rising irrationality in option volumes (F&amp;O), the SEBI has directed exchanges and market infrastructure institutions (MII) to discontinue the practice of charging turnover-linked slab-wise fee structures, and levy uniform transaction charges insteadWhile exchanges currently levy regressive slab-wise fees (higher the turnover, lower the fees), brokers usually charge their customers at the highest prescribed slab rate, resulting in excess profit residing with brokers, especially discount brokers, which is accounted as “ancillary transaction income”Our analysis of ANGELONE’s disclosures suggests that this revenue stream contributes ~8% to revenues and a material 20% to pre-tax profits, which is likely to be vulnerable to the SEBI’s “True to Label” mandate that calls for a complete pass-through from customers to MIIsContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Angel One: SEBI Clamps Down on Frothy Revenue Pools. Maintain ADD

<ul><li>Angel One beat estimates, driven by strong 31% QoQ growth in net revenues, on the back of increased activity, translating into higher ADTO and stronger ancillary transaction revenues (+28% QoQ)</li><li>However, admin costs spiked again and are likely to stay elevated on the back of investments in brand visibility, additional tech talent, and new businesses</li><li>While Angel One has gone through multiple BlitzScale gears (47k daily client adds during Q4FY24), we believe that the quality of incremental customer additions is turning inferior (lower trading intensity)</li><li>Even as individual wallets are actively looking for asset allocation alternatives, we believe that Angel One’s ability to prioritise speed over efficiency offers the franchise a potent “first scaler advantage” - however, this needs to be weighed up against RoIC.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Angel One beat estimates, driven by strong 31% QoQ growth in net revenues, on the back of increased activity, translating into higher ADTO and stronger ancillary transaction revenues (+28% QoQ)However, admin costs spiked again and are likely to stay elevated on the back of investments in brand visibility, additional tech talent, and new businessesWhile Angel One has gone through multiple BlitzScale gears (47k daily client adds during Q4FY24), we believe that the quality of incremental customer additions is turning inferior (lower trading intensity)Even as individual wallets are actively looking for asset allocation alternatives, we believe that Angel One’s ability to prioritise speed over efficiency offers the franchise a potent “first scaler advantage” - however, this needs to be weighed up against RoIC.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Angel One: Burn Rate to Stay Elevated, Maintain ADD

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.</li>
<li>On the IPO front, <a href="https://www.smartkarma.com/entities/hd-hyundai-marine-solution-co" target="_blank" data-smartkarma-citation="entities:41002:1" rel="noopener">HD Hyundai Marine Solution (443060 KS)</a> and <a href="https://www.smartkarma.com/entities/bharti-hexacom" target="_blank" data-smartkarma-citation="entities:40858:1" rel="noopener">Bharti Hexacom</a> were in the market trying to raise over US$500m each.</li>
<li>Placements flow continued unabated this week as well, India, Taiwan and South Korea seeing large blocks.</li>
</ul>


Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.
On the IPO front, HD Hyundai Marine Solution (443060 KS) and Bharti Hexacom were in the market trying to raise over US$500m each.
Placements flow continued unabated this week as well, India, Taiwan and South Korea seeing large blocks.


ECM Weekly (1st Apr 2024) - Shinhan, GlobalWafers, Mankind, Hyundai Marine, Bharti Hexacom, ChaPanda

<ul><li>Angel One clocked a modest 1.4% QoQ growth in net revenues, driven by an inferior order mix and lower ancillary transaction revenues (-10% QoQ)</li><li>Admin costs spiked again and are likely to stay elevated on the back of investments in additional tech talent and new businesses</li><li>While Angel One has gone through multiple BlitzScale gears (50k daily client adds during Dec’23), we believe that the quality of incremental customer additions is turning inferior (lower trading intensity)</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Angel One clocked a modest 1.4% QoQ growth in net revenues, driven by an inferior order mix and lower ancillary transaction revenues (-10% QoQ)Admin costs spiked again and are likely to stay elevated on the back of investments in additional tech talent and new businessesWhile Angel One has gone through multiple BlitzScale gears (50k daily client adds during Dec’23), we believe that the quality of incremental customer additions is turning inferior (lower trading intensity)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Angel One: Plateauing Marginal Utility, Maintain ADD

<ul><li>ANGELONE printed a 2.5% QoQ decline in its top line, driven by moderation in the number of orders (-5% QoQ) and lower ancillary transaction revenues (-19% QoQ)</li><li>Staff costs spiked once again and are expected to stay elevated on the back of its sustained efforts on scaling up and investing in additional tech talent</li><li>ANGELONE has been inconsistent in its intent and ability to align marketing dollars with the pace of customer adds, thereby impacting margins, we continue to monitor these expenses in a soft customer add environment, especially with the quality of recent-vintage clients on the decline</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ANGELONE printed a 2.5% QoQ decline in its top line, driven by moderation in the number of orders (-5% QoQ) and lower ancillary transaction revenues (-19% QoQ)Staff costs spiked once again and are expected to stay elevated on the back of its sustained efforts on scaling up and investing in additional tech talentANGELONE has been inconsistent in its intent and ability to align marketing dollars with the pace of customer adds, thereby impacting margins, we continue to monitor these expenses in a soft customer add environment, especially with the quality of recent-vintage clients on the declineContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Angel One - Signs of Fatigue Setting In, Downgrade to ADD

India

Angel One is an Indian technology-led financial services company that operates as a digital-first retail brokerage. It provides a comprehensive suite of investment and trading products across equity, commodity, and currency segments, along with depository services, margin trading, and mutual fund distribution. The company was founded in 1996 and is headquartered in Mumbai, India.

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Angel One (ANGELONE IN)

Angel One: SEBI Clamps Down on Frothy Revenue Pools. Maintain ADD

We cut our PBT estimates by 11% and 23% for FY25E and FY26E to factor in the potential first-order impact, we also flag the potential second-order...

HDFC Securities

Angel One: Burn Rate to Stay Elevated, Maintain ADD

Angel One beat estimates, driven by strong 31% QoQ growth in net revenues, on the back of increased activity, translating into higher ADTO and...

HDFC Securities

ECM Weekly (1st Apr 2024) - Shinhan, GlobalWafers, Mankind, Hyundai Marine, Bharti Hexacom, ChaPanda

Aequitas Research puts out a weekly update on the deals that were covered by the team recently along with updates for upcoming IPOs.

Sumeet Singh

Angel One: Plateauing Marginal Utility, Maintain ADD

Angel One clocked a modest 1.4% QoQ growth in net revenues, driven by an inferior order mix and lower ancillary transaction revenues (-10% QoQ)

HDFC Securities

Angel One - Signs of Fatigue Setting In, Downgrade to ADD

ANGELONE printed a 2.5% QoQ decline in its top line, driven by moderation in the number of orders (-5% QoQ) and lower ancillary transaction...

HDFC Securities

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