#AngelOne Q4 results are as per expectation & superb. My key takeaways from the investor presentation in this mini 🧵
1. SmartStore is the joker in the pack. If Angel can build a successful engagement based platform for the users. We also see that they have initiated regulatory approval for AMC already
2. Some Details on how they are developing the platform for educating traders. Discussion forums are the primary variable to track IMO. I am HOOKED to ValuePickr.com I came for the knowledge, but stayed for the community.
3. ARQ Prime, their proprietary smart beta strategy is steadily outperforming midcap index. Would be interesting to see what kind of cos it picks (havent done that yet).
4. Good to see expanding market share of NSE active clients. Would also love to get feedback on whether angel indulges in any petty practices to inflate this number (the way ICICI direct and groww do).
As suspected, the bulk of the volume growth is coming from the tier 2 and 3 cities but interesting to see that there is an actual acceleration in growth as we go down the tiers.
6. The # of trades metric is most important for revenue (flat fee structure). Good to see ~15% QoQ growth in that. ADTO is also important in order to have an engaged client base. As suspected most of growth is coming from F&O segment with cash and commodity being flattish.
7. The margin funding book is growing nicely. Remains to be seen how much of this is sticky growth. Remains to be seen how fast India margin (~1B$ now) funding becomes as large as China
... (100B$) & US (800B$)
8. Interesting to see how their digital focussed talent pool has growth even though the overall talent pool hasnt. Shows the transformation in the thought process & focus on AI & ML enabled user experiences
9. Look at the strength of the independent directors on the board. Max life insurance, World Bank, LIC, SBI life insurance
Do read this thread to understand the biz of Angel if you haven't:
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