Round 2 (CasAngel)

Case Study - Sustaining growth in the broking industry

About the firm

 Angel One (formerly Angel Broking) is a Fintech brand that offers a one-stop solution for
all financial needs of an individual. As a digital broker, the company caters to more than
77 lakh clients spread across 98% of India’s pin codes i.e. 18,874 locations. The
digital-first platform is now set to offer a wider bouquet of products including mutual
funds, insurance and other financial products to this rapidly growing client base
 In 1996, the company began as a single-branch-led physical stockbroking firm. By 2019,
it grew to a multi-state presence with 180+ physical branches. With the digital
revolution, it ventured into solutions backed by Artificial Intelligence and Machine
Learning; and implemented a completely digital model
 The platform now has digital products like ARQ Prime, Angel BEE, Smart Money, Smart
Store, and SmartAPI. ARQ Prime is a proprietary digital advisory product that offers
personalized investment advisory services
 Angel One currently offers its iTrade Prime Plan which includes ₹0 brokerage on equity
delivery trade & ₹20 brokerage for intraday, F&O, commodity and currencies trade. It
also offers free margin trading facility & free brokerage for the first 30 days on all
segments

Problem statement
 India is an underpenetrated Broking market, with historically people preferring to invest
in safe assets like Gold, Real estate and FDs. Though the millennials have kept opened
Demat accounts leading to highest ever Industry figures. Is this growth sustainable and
how this growth can continue?

Requirements
1. Submit an analysis of the broking industry with a relevant framework and mention its
future outlook. According to you, is this current growth sustainable or not?
2. Prepare a valuation model of Angel One. Use the annual report for your evaluation -
Angel One - Annual Report 2020-21
a) Conclude if the share price is currently overvalued, undervalued or fairly valued
b) Explain the reasons for the difference (if any) in the fair value and share price
(Clearly state the method and assumptions for your model)
3. What steps can Angel One take to withstand the competition from emerging fintechs.
For e.g. Should we explore a different pricing model or enter into the AMC business or
something else? (Back this with proper research, analysis and financial, if any)
Other details:
1. Teams can submit their presentations in either .pptx format or .ppt format.
2. The presentation can have a maximum of 10 slides, excluding the team introduction, and
Thank you slides.
3. Naming convention of the file should be TeamName_InstituteName. In case of any issues,
the decision of Ignisense, Symbiosis Institute of International Business, Pune will be final
and binding.