Angel One: Metamorphosis into a Fintech? (Previously Angel Broking)

To understand the potential corrections in Angel One’s stock price, we should consider the following factors:

1. Demat and Trading Accounts Comparison: We need to evaluate the number of demat and trading accounts in India compared to the U.S. This will provide insight into market participation and potential future trends.
2. Stock Valuation: The stock’s current Price-to-Earnings (P/E) ratio is 16.4, which is below the median P/E ratio of 20.6. This indicates that the stock may be undervalued relative to its historical performance.
3. Price Decline: The stock has already declined by 47% from its all-time high. This significant drop suggests that the stock has experienced a substantial correction.
4. Potential Future Corrections: Despite the recent decline, further corrections could occur, with potential price levels around 1950 and 1635. However, this does not mean the stock should be overlooked.

In summary, while Angel One’s stock may experience further corrections, its current valuation and the number of trading accounts suggest it could still be a valuable investment opportunity.