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Anand Rathi Wealth Ltd
NSE: ANANDRATHI BSE: 543415 INE463V01026 Financial Services Cap Markets 🔎 Screen
NIFTY 500 Smallcap 50 Smallcap 100 Smallcap 250
₹33,907 Cr
Market Cap
34.46
P/B
57.5%
ROCE
45.3%
ROE
0.08
D/E
39.5%
Fin. Margin
+45.3%
% from 52W High
12
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Anand Rathi Wealth Ltd was incorporated on March 22, 1995. It is an AMFI registered mutual fund distributor and is one of the leading non-bank wealth solutions firms in India, being ranked amongst the top three non-bank mutual fund distributors in the country. The company offers a wide product portfolio of wealth solutions, financial product distribution, and technology solutions to its clients.

✓ Strengths 5
  • Company is almost debt free.
  • Company has delivered good profit growth of 54.7% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 42.2%
  • Company has been maintaining a healthy dividend payout of 31.1%
  • Company's median sales growth is 29.8% of last 10 years
! Concerns 3
  • Stock is trading at 33.7 times its book value
  • Promoter holding has decreased over last quarter: -1.75%
  • Earnings include an other income of Rs.200 Cr.
Key Ratios Snapshot
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📈 Growth Pattern
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Strong beat: Revenue, PAT, and AUM all grew double-digits YoY, with PAT margin expanding 140bps to 34.4% – though PAT growth decelerated from prior quarters. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹336.4 Cr
+18.4% YoY
PAT Margin
34.4%
+140bps YoY
PAT
₹115.9 Cr
+23.5% YoY
AUM
₹1,06,300 Cr
+21.1% YoY; net inflows ₹3,824 Cr
What Went Right
  • Revenue grew 18.4% YoY to ₹336 Cr on adjusted basis.
  • PAT grew 23.5% YoY to ₹116 Cr, with margin expanding 140bps to 34.4%.
  • AUM crossed ₹1,06,300 Cr, up 21.1% YoY, driven by net inflows of ₹3,824 Cr.
  • Relationship Managers increased to 417 (from 382) and client families to 13,941 (from 12,330).
  • Client attrition remained negligible at 0.09% of AUM (vs 0.11% last year).
What to Watch
  • PAT growth of 23.5% YoY decelerated from the ~28-38% range seen in recent quarters, partly due to a high base.
  • Digital Wealth AUM grew only 23% YoY to ₹2,526 Cr, trailing the overall AUM growth rate.
  • Revenue from 'Other financial products' grew 18.5% YoY, slightly below total revenue growth, suggesting a possible mix shift.
Management Guidance
  • FY27 guidance: Revenue ₹1,415 Cr, PAT ₹460 Cr, AUM ₹1,20,000 Cr. Q1 achieved 24% of revenue and 25% of PAT guidance.
Investor Lens
Thesis remains intact: sticky HNI relationships, low attrition (0.09%), and a proven risk-adjusted strategy (Jensen's Alpha 6.53%) support consistent performance. However, PAT growth deceleration to 23.5% YoY (from 30%+ in prior years) warrants monitoring, especially given the high base. Wallet share expansion and RM productivity remain key growth levers. The 1:1 bonus and rising dividends reinforce management's commitment to shareholders. Next quarter, watch net inflow momentum and any impact from market volatility on AUM growth.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Net profit jumps 77% YoY to ₹163 Cr, but operating profit dips 13.6%
Revenue
Revenue grew 18.1% YoY to ₹313 Cr, and rose 13% QoQ, driven by strong core business performance. The company continues to show robust top-line momentum.
Profitability
Net profit surged 77.2% YoY to ₹163 Cr, aided by other income of ₹109 Cr. EPS improved to ₹9.83 from ₹5.56 a year ago, reflecting higher profitability despite operational headwinds.
Margins
Operating profit margin dropped sharply to 35% from 47% YoY, indicating cost pressure or lower-margin business mix. QoQ margin improved from 30%, but remains below historical levels.
Key Risks
Sustainability of other income is uncertain; operating margin compression could persist. High PE of 74.75 leaves little room for execution errors. Debt-to-equity is low at 0.08, limiting financial leverage risk.
Outlook
Revenue growth remains strong, but margin recovery is critical for long-term valuation support. The company's high ROE of 45.3% provides a buffer, but operational efficiency will be key.
Generated by AI · Jun 2026 results · Not investment advice
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Investment Risk:
Investing in securities, including equities and mutual funds, involves inherent risks, including the potential loss of principal. All investments are subject to market fluctuations, regulatory changes, and other risks that may affect their value. Past performance is not indicative of future results. This report is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This report does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a SEBI-registered investment adviser or other qualified financial professional before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities or financial instruments discussed in this report. Any such positions, if material, are disclosed to the best of the author's knowledge and are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company, institution, or third party.

Information Sources:
The analysis and opinions expressed herein are based on publicly available information, including but not limited to company filings with the BSE/NSE, annual reports, management commentary, investor presentations, data from the Reserve Bank of India (RBI), SEBI, industry publications, and other reliable financial data sources. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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