Reliance is also the investor, cannot find BCG ??

Angel One Q1 concall highlights –

Unique SIPs registered with Angel One in Q1, Q2,Q3,Q4 FY 23 and Q1 FY24-

0.5lakh, .48 lakh, .57 lakh, 1.08 lakh & 4.3 Lakh !!
Company in No2 in no of SIPs in the mkt
Total Demat accounts in India Today-8.6 pc of population vs 1.7 pc in FY12 !!

NSE ADTO and Trade volumes going up every single year without exception since 2007. No exceptions despite multiple Mkt corrections !!!

Q1 financial outcomes(YoY)-

Revenues-811 vs 684 cr, up 18 pc
Breakdown-
Broking-557 vs 470cr
Interest income-144 vs 121cr
Other-108 vs 92cr

EBDAT – 305 vs 249 cr

PAT – 220 vs 181 cr

Client funding book size – 1139 vs 1594 cr

Avg per client exposure – 1.08 vs 0.97 lakh YoY

Angel One’s incremental client addition in last 4 FYs ( FY 20-23 ) – 5 lakh, 23 lakh, 51 lakh, 46 lakh. Another 13 lakh added in Q1

Mkt share in new client addition – 21 pc !!!

Angel One’s Mkt share in total NSE active client base – 14.3 pc ( as on June 23 ) vs 8.8 pc in Mar 21 – a staggering 545 bps Jump !!!

Segment wise Mkt share(ADTO) –

F&O – 24.6 pc
Cash Mkt – 13.4 pc
Commodity – 56.9 pc !!!

In the process of rolling out Loan Products distribution business from their super app

Angel’s total client base stands at >1.5 cr
Q1 annualised RoE @ 39 pc

Share of revenue Jun 24 vs Jun 22 vs No of years of client acquisition-

29 pc vs 55 pc @ < 1 yr
29 pc vs 18 pc @ 1-2 yrs

22 pc vs 8 pc @ 2-3 yrs
12 pc vs 9 pc @ 3-5 yrs
9 pc vs 10 pc @ > 5 yrs

This data is encouraging as more mature clients are now contributing to far higher share of revenues

Company has a large base of affiliate partners @ > 21k

Budgeted cost for ESOP this yr is 50-55 cr

In the process of obtaining final approval from SEBI for AMC business

Angel is now No 3 in no of NSE active clients. Angel’s Mkt share is around 14 pc vs Mkt leader (Zerodha) @ around 20 pc

Current Qtly revenues from distribution of Financial products is aprox 8 cr

Intend to grow this multi-fold in the next few yrs

In discussion with top banks, NBFCs for distribution of Personal loans. Company to also assist them in providing them customer data using AI models to better access the customer’s risk profile

Company in process of looking out for a new CEO. May take some time to find the right candidate

Company to go live to support BSE’s Bankex and Sensex derivatives by start of Q3

Disc: hold a tracking position. May add more on dips / better results

VST Tillers Tractors – 2 year breakout on weekly chart. Fundamentally also company looks good. They have given a growth guidance of 3000cr in FY 26(current revenue is 1000cr). Need to be monitored on quarterly basis to see if company can achieve the guidance

Not sure if anyone here is tracking this company of late. Has been reporting good set of numbers backed by robust order book, experienced track record in setting up customized equipment, sectoral tailwinds, change in management and revival in capex cycle.
Conducted its first ever con-call post Q1 FY 24

Con-call notes

1. Business Overview
   • 300 cr revenue in coming year is achievable
   • Targeting 450-500 cr revenue in 2 to 3 years
   • Enquiry pipeline of approx. 750 crores. Most of this likely to get closed in this year.

2. Global collaborations
   o Nara (Japan) – Company manufactures paddle dryers of Nara design for Indian market and in talks on supplying it for other markets
   o Carrier – manufacturing some of the equipment of their design and working on offering them engineering services from India and arrangement of contract manufacturing. Looking to support them if they get orders from US or Europe.
   o Idreco ( A European based water treatment company) is recent tie-up – started receiving orders for spare parts and other small equipment. This is an exclusive collaboration. Tenure is 3 years; and can be extended further.
   More details – Idreco_Presentation_Letter_(En).pdf (707.1 KB)

3. Applications diversified across sectors –
   o Chemicals
   o Speciality chemicals
   o Food industry
   o Fabrication of critical equipment

4. Earlier, were more product centric. Now transforming to becoming more solution providers.

5. Margins –Endeavour is to maintain 15 to 17% EBITDA margins.

6. Export is roughly – 15 to 20%. Export will remain key focus area and will look to take advantage of lower manufacturing costs compared to Europe.
   a. Currently US & Europe are serviced through a regional tie-up. Looking to setup own team there in near future.

7. What has changed of late
   o New management – Mr Ranjit Lala as MD (has 3 decades experience in different companies across different functions like Manufacturing, supply chain, international sales, etc)
   o Lot of focus on scaling up order value and Economies of scale
   o Better product mix
   o Tailwind of sector demand
   o Superior Operational efficiency – on receipt of orders, RM orders are placed within 48 hours, which mitigates fluctuation in cost of RM
   o Recently entered carbon black market
   o Fabrication of silos – Recently bagged a project with Technip for IOCL refinery in Paradip.
   o Transforming into a solution provider than product centric

8. Differentiators
   o Strong relationship with customers. (Company’s customers include Reliance Industries, Tata Chemicals, Nirma, Vinati Organics, etc). Start working right from conceptualization stage. Ability to manufacture with different kinds of exotic materials.
   o Operating in in a niche market where setting up equipment like Carbon black dryers requires technological knowhow
   o Experts in fabrication – Mastered all kinds of welding practices. There are 450 processes involved in welding and fabrication. Huge competitive advantage…

   Dryer business globally is a $1-2 billion market and in India its roughly around Rs.3,500crs.

9. Service segment has higher margins than manufacturing. Will look to scale up the service segment further

10. Competition is different by for different products
    o Rotary dryers – GMM Pfaudler, Walchandnagar.
    o Applications in carbon black – few companies in Germany, China
    o Soda ash – Chinese companies.
    o Paddle dryers – Mostly small players.

11. Products are capex intensive. Must keep monitoring capex cycle …

Disc: Invested from sub-100 levels and biased