Angel One VS Motilal Oswal

Angel One VS Motilal Oswal The number of retail investors in India has surged in recent years since the onset of the pandemic. This has enabled new small and large traders and investors to learn and implement their skills at their leisure. This has benefited several companies that generate revenue through their activities in financial markets.

Angel Broking and Motilal Oswal are two of the best brokers in India. Both have millions of customers and provide financial services. Read this article to compare the two companies.

Angel One vs Motilal Oswal – Company Overview

angel one

Angel One Limited, a prominent fintech platform, has been successfully helping young people in India build wealth since its inception in 1996. Originally founded as a traditional stock brokerage firm, the company embarked on a “digital journey” in 2019 to transform its services.

Currently, Angel One Limited provides comprehensive digital investment solutions covering stocks, currencies, commodity broking, margin trading, depository services and mutual fund distribution. With its commitment to providing end-to-end digital financial solutions, the company has also forayed into portfolio management services.

Notably, Angel One Limited has achieved the remarkable status of being the third largest stock broker in India based on NSE active customers. The company’s impressive reach is evidenced by over 39 million app downloads, reflecting its strong user base of 13.8 million customers. Through its innovative approach and digital capabilities, Angel One Limited continues to play a pivotal role in shaping the financial landscape for millions of Indians.

Motilal Oswal

Motilal Oswal Financial Services (MOFSL) was established in 1987 as a small sub-broking unit with two promoters and one employee and has evolved into a strong and diversified financial services company. MOFSL is committed to creating wealth through knowledge.

The company has an extensive footprint serving over 550 cities through a network of over 2,500 locations. With a dedicated team of over 9,800 employees, MOFSL offers a comprehensive range of financial products and services covering retail and institutional broking, private wealth, investment banking, private equity, wealth management and housing finance.

MOFSL has established a strong position in the financial industry as one of the top four brokerages in terms of total revenue under management. Notably, the company’s total assets under management (AUM) recently crossed INR 1 trillion, demonstrating the company’s success and importance in the financial services sector.

segment analysis

angel one: Angel One is a diversified financial services company with brokerage and depository operations, stock trading and support services, customer financing, third-party distribution, mutual funds, insurance, IPO and bonds.

fatal orl: Motilal Oswal Financial Services Limited (MOFSL) is a diversified financial services company engaged in stock broking business activities. MOFSL’s businesses include retail brokerage and distribution, institutional broking, investment banking, asset management, asset management, alternative assets, housing finance, and securities lending.

Industry Overview

India continues to remain a bright spot in the global economic landscape. Drive sustained growth by leveraging demographic dividends, digital transformation, and innovation potential. According to the Economic Survey, India is expected to see real GDP growth of 6.5% in FY24, albeit lower than in FY23, which will still make India one of the fastest-growing economies in the world. This will be primarily driven by a progressive regulatory environment, strong industrial policy (through PLI), debt reduction and continued capital spending, especially on large infrastructure projects.

The Indian stock market has seen a paradigm shift with the significant increase in the participation of individual investors in the stock market. Their share of both cash and equity derivatives has increased over time. Retail investors’ share of equity cash turnover expanded from 33.0% in FY16 to 36.5% in FY23. Additionally, its share in the equity derivatives turnover segment expanded from 23.0% in FY16 to 27.7% in FY23. This trend reflects that retail investors have good portfolio composition. Individual investors are increasingly building portfolios for the long term.

Angel One vs Motilal Oswal – Finance

Sales and Net Profit

Angle One reported revenue of Rs. 3201 crore in FY23 compared to Rs 229.7 billion in FY22, an increase of 39%. Profitability increased to 500 billion won. 890 crore in FY23 from Rs. It increased by 42% to 62.5 billion won. Revenues and profits grew significantly as total customer base grew by 49.5% year-on-year and overall average daily turnover (ADTO) increased to Rs 13.6 trillion in FY23, 110.4% higher than FY22.

Motilal Oswal reported revenue of Rs. 4197 crore in FY23 compared to Rs 431.6 billion in FY22, a decrease of 2.75%. Profitability decreased to 500 billion won. 935 crore in FY23 from Rs. It decreased by 29% to 131.2 billion won. In the long term, sales and profits have increased.

On a 4-year CAGR basis, Angel One has grown at a higher growth rate than Motilal Oswal in terms of revenue and profits. The picture below compares revenue and profit This is Angel One vs Motilal Oswal from the last 5 years.

profit

The operating profit margin of Angel One and Motilal Oswal is 42.68% and 44%, respectively, with Motilal slightly ahead. However, if you look at the five-year average, Motilal’s OPM is higher.

The net profit margins of Angel One and Motilal Oswal are 29.64% and 22.33%, respectively, with Angel One leading. However, if you look at the five-year average, you will see that the margins are roughly the same.

While Angel One’s margins have consistently increased over the years, Motilal Oswal’s margins have been fluctuating due to cyclical fluctuations in business volumes. The picture below compares profit This is Angel One vs Motilal Oswal from the last 5 years.

rate of return

Angel One reported a return on equity of 41.17%, which is higher than its five-year average of 27.16%. Motilal Oswal reported a return on equity of 14.90% compared to the five-year average of 16.33%.

Considering the return on capital, Angel One and Motilal Oswal recorded 56.72% and 13.32%, respectively. While Angel One’s return is higher than its 5-year average of 42.31%, Motilal Oswal could not beat its 5-year average of 16.16%.

While the Angel One ratio has continued to improve over the years, generating significant returns, the Motilal Oswal ratio has been inconsistent due to fluctuations in trading volume.

The picture below compares Return on equity and return on capital It’s Angel One vs Motilal Oswal for the last five financial years.

leverage ratio

The debt ratios of both companies over the past five years are showing positive signs. Both companies no longer had to rely on borrowed capital. The five-year average debt-to-equity ratios of Angel One and Motilal Oswal are 0.93 and 1.43, respectively. This means you can keep more of your profits because you don’t have a large obligation to repay debt and interest.

In terms of interest coverage ratio, Angel One leads with an ICR of 14.65, while Motilal Oswal’s figure is 3.18 times. An ICR above 1.5x is an acceptable ratio, according to which both companies are considered safe.

The picture below compares Debt ratio and ICR This is Angel One vs Motilal Oswal from the last 5 years.

Key Indicators for Angel One vs Motilal Oswal

Angel One Vs Motilal Oswal – Future Plans

angel one

• We plan to integrate the latest technology tools and develop powerful AI and data science capabilities.
• We aim to secure market leadership.

Motilal Oswal

• We will further diversify our business model towards more pension revenue streams.
• We aim to make payment documents paperless.
• We aim to drive more performance-linked AUM across both PMS and AIF as this helps increase net returns.

conclusion

As we conclude our article on comparison between Angel One and Motilal Oswal, we have understood their business, finances, and future prospects. Both are major players in the financial sector. Prior to investment, additional analysis is required to determine the nature and suitability of risk and return. Please leave your thoughts in the section below.

Written by Ashish Agarwal

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