Angel One Limited

“Angel One has undergone a permanent business model degradation — from a capital-light, high-ROE digital broker to a capital-consuming, leverage-dependent NBFC hybrid — driven by SEBI's structural F&O crackdown. At 30x trailing earnings with negative free cash flow, a 76% debt/equity ratio, and promoters who have sold 16 percentage points of stake in 4.5 years, the stock offers no margin of safety and significant downside risk. The Indian retail financialization TAM is real but Angel One's moat is too narrow and its financial trajectory too impaired to benefit minority shareholders. Capital should be deployed elsewhere.”