Despite a strong IPO season, the stock of Angel Broking Ltd, one of the largest retail brokers in India, listed with a discount of about 10 per cent to the issue price on Monday. The stock made its debut at Rs 275 versus its issue price of Rs 306 a share on the National Stock Exchange. The company’s share marked an intraday high of Rs 296.7 and an intraday low of Rs 257. At 14:30 hrs on Monday, the company was trading around the listing price of Rs 275.
While the stock seemed quite expensive at the issue price, with the then price-earnings multiple of 30 (post-issue) its FY20 earnings, the valuation has dropped to about 27 considering the listing price.
Even at the current price levels, the stock seems unattractive as its other listed peers such as ICICI Securities that are is comparatively cheap or with better financial metrics.