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Business Standard
an hour ago
- Business
- Business Standard
Angel One share price rises 2% on posting Q1 results; Buy, sell or hold?
Angel One shares rose 2.2 per cent on Thursday, logging an intraday high at ₹2,778 per share on the National Stock Exchange (NSE) after posting Q1FY26 results. At 9:35 AM, Angel One share price was trading 0.8 per cent higher at ₹2,738.4 per share on the BSE. In comparison, the NSE Nifty was up 0.11 per cent at 2,738.4. The company's market capitalisation stood at ₹24,801.39 crore. The 52-week high of the stock was at ₹3,503.15 per share, and the 52-week low of the stock was at ₹1,941 per share. Angel One Q1FY26 results In the quarter ended June 30, 2025, Angel One's profit after tax (PAT) declined to ₹114.5 crore, down 60.9 per cent, as compared to ₹292.7 crore a year ago. Its revenue for the quarter also declined 19 per cent to ₹1,140.5 crore as compared to ₹1,405.5 crore a year ago. However, sequentially, the revenue rose 8 per cent. The Securities and Exchange Board of India (Sebi) in October last year raised the entry barrier for derivatives trading by nearly tripling the minimum trading lot size and limiting weekly options contracts to one per exchange, making it more costly to trade in the asset class. Angel One Q1 results analysis: Motilal Oswal The Q1 results were in line with the brokerage's estimates. In 1QFY26, the industry witnessed a slight recovery after the regulatory impact on F&O, supported by a stable market environment and cash delivery brokerage, which contributed to Angel One's top line growth. However, elevated employee expenses and increased IPL spends weighed on its bottom line. The new business of loan distribution gained strong traction during the quarter. Other new businesses, such as the distribution of fixed deposits, wealth management, and AMC, are likely to gain traction over the medium term. The brokerage will review the stock after its earnings call. Meanwhile, Kranti Bathini, director-equity strategy, WealthMills securities Pvt ltd suggests "holding" Angel One stock at the current levels. According to Bathini, broking stocks are expected to consolidate due to the Sebi norms on the derivative markets. Broking companies derive substantial revenues from the derivative markets, so Sebi's move can be an overhang for these stocks, including Angel One medium-to-short term. Technically, Angel One is witnessing resistance near its falling trendline, while the 20 EMA is on the verge of a bearish crossover with the 50 EMA, signaling a cautious outlook. Moreover, declining volume indicates a lack of buying interest at higher levels, said Drumil Vithlani, technical research analyst, Bonanza. About Angel One Established in 1996, Angel One (formerly Angel Broking) is among the leading retail stockbroking and financial services firms in India, founded and chaired by Dinesh Thakkar. The company provides a broad suite of offerings, including equities, derivatives, mutual funds, insurance, and personal loans.
Mint
21 hours ago
- Business
- Mint
Paytm share price gains for fifth straight session, crosses ₹1,000 for the first time in six months
Paytm share price in focus today: Shares of One 97 Communications, the parent company of Paytm, jumped nearly 3% in intraday trade on Wednesday, July 16, hitting the day's high of ₹ 1,014, crossing the ₹ 1,000 level for the first time in six months. Today's rally also marked the fifth consecutive session of gains for the stock, taking its total rise to 9% so far in July. The stock was last seen around the ₹ 1,000 range in early January, but failed to sustain those levels and underwent a correction that lasted for two months before regaining momentum in early March, with the stock ending the following four months in green. The recent rally in Paytm shares has been fueled by reports of its possible inclusion in the MSCI Standard Index. According to brokerage firm Motilal Oswal, there is a high probability that Paytm may be upgraded from the MSCI Smallcap Index to the Standard Index in the upcoming MSCI rebalancing in August. If that happens, Motilal Oswal estimates the stock could see inflows worth $212 million following the index adjustments. The MSCI announcement is expected on August 8, with changes taking effect from August 26. After hitting an all-time low of ₹ 310 in May 2024, Paytm has staged a strong recovery, rallying 230% to end the year at ₹ 1,017, emerging as one of the best turnaround stocks of the year. This sharp rebound is largely attributed to the company's improving performance across multiple business segments, which has revived investor sentiment and boosted confidence in its long-term growth trajectory. Mutual funds have also shown growing confidence in the company's growth prospects. According to the latest shareholding data for Q1FY26, domestic mutual funds collectively held a 13.86% stake in Paytm, up from 13.11% in the March quarter. Among the notable domestic investors are Mirae Asset Mutual Fund, Motilal Oswal Mutual Fund, Nippon Mutual Fund, and Bandhan Mutual Fund. While mutual funds expanded their stake in the company, both FIIs and retail investors trimmed their holdings. FII ownership declined to 54.9% from 55.4% in the March quarter, while retail investors reduced their stake by 1.3% QoQ to 29.3%. Paytm is scheduled to announce its June quarter results on July 22 (Tuesday), and analysts expect a strong performance, possibly marking the company's first profitable quarter on a PAT basis. According to JM Financial, Payment Services revenue (excluding UPI incentives) is expected to grow 6% QoQ and 21% YoY, driven by a 27% YoY GMV increase. However, a rising share of lower-yielding UPI transactions may result in a lower take rate. The merchant subscriber base is projected to grow by approximately 7% QoQ (22% YoY) to reach 13.3 million, reflecting the company's focus on onboarding new merchants and reactivating dormant ones. Loan disbursals in Q1 are expected to grow by 8% QoQ (23% YoY), primarily led by merchant loans with a significantly lower mix of Default Loss Guarantee (DLG). However, personal loan disbursements may remain sluggish due to tighter norms around unsecured lending. Despite the impact of wage hikes, improved operating leverage is expected to lead to an adjusted EBITDA of ₹ 211 million. Most notably, JM Financial projects that Paytm may turn PAT positive, reporting a net profit of ₹ 189 million, aided by treasury income, which is likely to offset ESOP and depreciation/amortization expenses.
Time of India
a day ago
- Business
- Time of India
Vishal Mega Mart shares may rally 20%, says Motilal Oswal. What's driving the bullish call?
Motilal Oswal has initiated coverage on Vishal Mega Mart with a 'buy' rating and a target price of Rs 165, implying a potential 20% upside from Tuesday's closing price of Rs 137. The brokerage sees the value retailer as a 'play on rising aspirations in Tier 2+ India,' underpinned by its affordable private-label portfolio, lean cost structure, and a growing footprint across underserved cities. Shares of Vishal Mega Mart rose as much as 2.2% on Wednesday to Rs 140 on the BSE. Vishal Mega Mart ( VMM ) operates 696 stores across 458 cities in India, with roughly 72% of its footprint located in Tier 2 and smaller towns. Motilal Oswal said the company is tapping into a largely unorganised Rs 70 trillion retail opportunity, which it expects will exceed Rs 100 trillion by 2028. 'VMM is one of India's largest offline-first value retailers, catering to ~1 billion people across the middle- and low-income segments,' the brokerage said, adding that the company's well-diversified exposure to apparel (44%), general merchandise and FMCG (28% each), gives it significant wallet share potential. Lean model, strong store economics According to Motilal Oswal, Vishal Mega Mart operates on one of the lowest cost structures in the industry, with a cost of retailing of about Rs 1,800 per sq ft, at least 20% lower than its nearest competitor. Its working capital discipline and asset-light approach have helped generate ~15% store-level EBITDA margins and over 50% return on capital employed. The company added around 85 net stores in FY25, and Motilal Oswal estimates about 13% compound annual growth rate in store additions, taking the count to 1,000 by FY28. Management has indicated a long-term target of adding 100 stores annually, including in states such as Tamil Nadu, Gujarat, and Maharashtra. Private labels driving profitability VMM's private labels contributed 73% of total revenue in FY25, supported by 26 in-house brands across fashion, general merchandise and FMCG. Nineteen of these brands recorded over Rs 1 billion in sales, with six crossing Rs 5 billion. The brokerage highlighted that the company's private-label FMCG products, sourced from vendors such as Indo Nissin and Bikanerwala, are priced 20–50% lower than national brands, helping attract price-sensitive consumers. 'VMM operates a 100% private label portfolio across men's, women's and kids' fashion,' Motilal Oswal said. Valuation and risks Motilal Oswal's target price of Rs 165 is based on its long-term cash flow projections, valuing the stock at around 45 times its estimated EBITDA and 69 times its projected earnings for September 2027. Despite the stock having already gained 75% since its IPO, the brokerage believes 'the risk reward remains attractive,' with potential to go as high as Rs 210 in a bullish scenario and a downside to Rs 120 in a weaker one. The brokerage expects the company to generate Rs 32 billion in operating cash flow and Rs 23 billion in free cash flow over FY25–28, supporting continued expansion. Key risks flagged include dependence on third-party vendors for manufacturing its private labels, rising competition from online and offline retailers, and the potential for promoter stake sales amid a lack of clarity on long-term ownership. Also read | Breakout Stocks: How to trade Anand Rathi Wealth, Piramal Enterprises & Vishal Mega Mart that hit a 52-week high? ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Business Standard
a day ago
- Business
- Business Standard
Vishal Mega Mart rises 2%; Motilal Oswal sees further 20% upside potential
Vishal Mega Mart shares rose 2 per cent on Wednesday, registering an intraday high at ₹140 per share on BSE. However, in the afternoon deal, at 12:40 PM, Vishal Mega Mart share price was trading 0.04 per cent higher at ₹1,37.1 per share on the BSE. In comparison, the BSE Sensex was up 0.05 per cent at 82,614.39. The company's market capitalisation stood at ₹63,907.39 crore. The 52-week high of the stock was at ₹140.45 per share and the 52-week low of the stock was at ₹96.05 per share. Motilal Oswal initiates coverage on Vishal Mega Mart The domestic brokerage has initiated coverage on Vishal Mega Mart with a 'Buy' call and has set the target at ₹165 per share, translating to an upside of 20 per cent from the previous close at ₹137.05 per share on BSE. The brokearge is bullish on the company for the following reasons: Vishal Mega Mart's retail footprint spans 696 stores over 12m sq ft across 458 cities. It operates a big-box retail format, with an average store size of ~17.5k sqft. During FY22-24, the company added 55 net stores annually. However, the pace of store additions has accelerated, with 85 net stores added in FY25. Further, the company's efficient working capital management, superior cost controls, and disciplined asset-light approach, according to Motilal Oswal, have enabled strong store economics with 15 per cent pre-IND-AS Earnings before interest, tax, depreciation and amortisation (Ebitda) margin at the store level, over 50 per cent return on capital employed (RoCE), and a payback period of fewer than two years. Well-diversified portfolio The company boasts a well-diversified category mix with over 25 per cent revenue contribution from three major categories—Apparel, FMCG, and General Merchandise (GM). Its diversified category mix makes it a one-stop destination for the entire family, expanding its total addressable market (TAM) and driving higher wallet share among consumers. Caters to ₹70 trillion worth opportunity Vishal Mega Mart is one of India's largest offline-first value retailers, catering to a population of 1 billion across the middle- and low-income segments. It serves a substantial market valued at ₹70 trillion, which is likely to reach ₹100 trillion by CY28. Outlook Motilal Oswal expects the company to post a revenue/Ebitda compound annual growth rate (CAGR) of 19 percent/20 per cent, driven by 13 per cent CAGR in store additions, consistent double-digit SSSG, and modest operating leverage benefits. Given the company's debt-free balance sheet, robust cost controls, and tight working capital management, it expects 24 per cent profit after tax (PAT) CAGR. Over FY25-28, Vishal Mega Mart is forecasted to generate a cumulative OCF/FCF of ₹3,200 crore/ ₹2,300 crore, which should enable accelerated store expansions.
News18
a day ago
- Business
- News18
Paytm Shares Cross Rs 1,000 For First Time In Six Months MSCI Buzz, Q1 Profit Hopes
Last Updated: Shares of One 97 Communications, the parent company of Paytm, surged nearly 3% in intraday trade on Wednesday; Key points for investors Paytm Share Price Today: Shares of One 97 Communications, the parent company of Paytm, surged nearly 3% in intraday trade on Wednesday, July 16, hitting a high of Rs 1,014. This marked the first time in six months that the stock crossed the Rs 1,000 level. The rally extended Paytm's winning streak to five consecutive sessions, pushing its total gains for July to 9%. The stock was last seen trading near the Rs 1,000 mark in early January but struggled to hold those levels, undergoing a two-month correction. Momentum picked up again in March, with the stock finishing the next four months in the green. The recent upward trend has been driven in part by speculation around Paytm's potential inclusion in the MSCI Standard Index. According to a note from Motilal Oswal, there is a strong possibility that Paytm may be upgraded from the MSCI Smallcap Index to the Standard Index during the upcoming August rebalancing. If the inclusion materializes, Motilal Oswal estimates that the stock could attract inflows worth $212 million. The MSCI announcement is expected on August 8, with the changes becoming effective on August 26. Paytm has staged a remarkable recovery since hitting an all-time low of Rs 310 in May 2024. The stock has rallied nearly 230%, closing the year at Rs 1,017, making it one of the most prominent turnaround stories in the market this year. The rally has been supported by improving fundamentals across business segments, helping to restore investor confidence and enhancing long-term growth visibility. Mutual funds have also demonstrated increased confidence in the company's prospects. As per the latest shareholding data for Q1FY26, domestic mutual funds collectively raised their stake in Paytm to 13.86%, up from 13.11% in the March quarter. Among the notable domestic investors are Mirae Asset Mutual Fund, Motilal Oswal Mutual Fund, Nippon Mutual Fund, and Bandhan Mutual Fund. While mutual funds expanded their holdings, foreign institutional investors (FIIs) and retail investors trimmed theirs. FII ownership declined slightly to 54.9% from 55.4%, while retail shareholding dropped by 1.3% quarter-on-quarter to 29.3%. Analysts Anticipate First PAT Profit in Q1 Results Paytm is scheduled to announce its June quarter results on July 22 (Tuesday), and analysts expect a strong showing—potentially marking the company's first profitable quarter on a profit-after-tax (PAT) basis. According to JM Financial, Payment Services revenue (excluding UPI incentives) is likely to grow 6% QoQ and 21% YoY, fueled by a 27% YoY increase in GMV. However, a rising share of low-margin UPI transactions may weigh on the take rate. The company's merchant subscriber base is projected to grow by 7% QoQ (22% YoY) to reach 13.3 million, reflecting ongoing efforts to onboard new merchants and reactivate dormant ones. Loan disbursements in Q1 are expected to rise by 8% QoQ (23% YoY), led primarily by merchant loans. The mix of Default Loss Guarantee (DLG) is expected to be significantly lower, while personal loan disbursements may remain muted due to stricter norms around unsecured lending. Despite wage hikes, Paytm is expected to benefit from improved operating leverage. JM Financial forecasts an adjusted EBITDA of Rs 211 million and a PAT of Rs 189 million, supported in part by treasury income that may offset costs related to ESOPs and depreciation/amortization. view comments First Published: July 16, 2025, 13:01 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
