While everyone’s busy chasing Zomatos and Zeel dramas, Anand Rathi Wealth is over here casually doubling profits every two years, throwing in 36% ROE, and looking like the HDFC Bank of wealth distribution.
So why isn’t this the most hyped stock in town? Let’s dig in.
🧾 Company Snapshot
- 🧬 Established: 1995
- 🧠 Business: Non-bank wealth solutions player – MF distribution, insurance, PMS, and a bit of tech-enablement sprinkled in
- 🏦 Parent Group: Anand Rathi Group (AUM: ₹77,103 Cr as of FY25)
- 🧮 Core Focus: High-net-worth (HNI) & ultra-HNI financial product distribution
- 🧾 Structure: Pure play on India’s rising financialisation — without credit risk
- 🎓 Edu-Analogy: Zerodha + HDFC + AMFI = Anand Rathi Wealth Lite
📈 Stock Performance Snapshot
| Duration | Price (₹) | Return (%) |
|---|---|---|
| 1 Year | 1,980 → 2,013 | +1.6% 😐 |
| 3 Year | ~750 → 2,013 | +168% 🚀 |
| Since Listing (Dec 2021 IPO) | ₹550 → ₹2,013 | +266% 💸 |
- 🏆 All-Time High: ₹2,323
- 📉 Current: ₹2,013
- ⚠️ Volatility: Low float, low volume — not for the faint-hearted
💰 5-Year Financials (Consolidated)
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EBITDA Margin (%) | ROCE (%) | ROE (%) |
|---|---|---|---|---|---|
| FY21 | 273 | 45 | 28% | 25% | 8.2% |
| FY22 | 424 | 127 | 43% | 50% | 15.2% |
| FY23 | 559 | 169 | 45% | 51% | 20.2% |
| FY24 | 752 | 226 | 44% | 51% | 26.9% |
| FY25 | 980 | 301 | 45% | 56% | 36.1% |
📈 Profit CAGR (5Y): 37%
🧾 Sales CAGR (5Y): 24%
💡 Edu Take: These are startup-like numbers from a finance uncle stock.
🔍 Valuation & Ratios (as of June 2025)
| Metric | Value |
|---|---|
| Market Cap | ₹16,713 Cr |
| Stock Price | ₹2,013 |
| P/E Ratio | 55.7x |
| Book Value | ₹81.2 |
| P/B Ratio | 24.8x 🤯 |
| Dividend Yield | 0.52% |
| ROCE (FY25) | 56.3% 💪 |
| ROE (FY25) | 45.3% 🚀 |
| Debt | Minimal |
| Promoter Holding | 47.29% (↓ QoQ) |
🎯 Note: Most expensive capital markets stock on P/B basis. But the returns kinda justify it.
🧠 EduAnalysis: This Ain’t No Fluke
✅ What We Love:
- 🧩 Zero credit risk – This is not an NBFC. You’re not loaning, just advising.
- 💸 Recurring revenue model – commissions from MFs, insurance, PMS, etc.
- 📊 High operating leverage – fixed team, scaling AUM = margin explosion
- 🧠 Consistent profitability – even during market corrections
- 📈 ESG compliant – tech platform, no lending book = low carbon finance bro
🧐 What Bugs Us:
- 📉 Promoter selling seen (0.7% down last quarter)
- ⚠️ Valuation looks nuts at 24.8x Book and 55x P/E
- 💹 Growth is high, but is it sustainable at ₹17,000 Cr market cap?
- 🐘 Liquidity risk – low float could mean sharp corrections on bad news
👀 Peer Check
| Company | P/E | ROE | AUM (₹ Cr) | Comment |
|---|---|---|---|---|
| Anand Rathi | 55.7x | 45.3% | 77,103 | Pure HNI play, full-throttle |
| Prudent Corp | 60.1x | 44.1% | ~89,000 | Similar model, more retail |
| IIFL Wealth (360 ONE) | ~40x | ~22% | 3,00,000+ | Bigger, more institutional |
| Dharni Capital | 28.3x | 25% | Small cap | Microcap risk |
🧠 Edu Take: The entire capital markets distribution segment trades like a SaaS biz. No wonder — the metrics match.
📉 Shareholding Trends
| Category | Mar 2023 | Mar 2025 |
|---|---|---|
| Promoters | 48.74% | 47.29% 🔻 |
| FIIs | 1.71% | 4.85% 🔼 |
| DIIs | 9.99% | 7.21% 🔻 |
| Public | 39.56% | 40.64% 🔼 |
📌 Takeaway: FII interest rising 👀 — possibly due to India’s structural shift to financial assets.
🗣️ Final Take: Multibagger, Meh, or Mirage?
✅ Verdict: Multibagger with Momentum Risk
- If you believe India will move from real estate & gold → SIPs & portfolios… this is your vehicle.
- Not as “cheap” anymore, so expect sideways correction or time-based consolidation
- But as a long-term play on rising Indian affluence, it’s hard to bet against.
📉 Buy zone: Under ₹1,850
🚨 Overheated above ₹2,200
🎯 EduCall: “Mutual fund sahi hai. But Anand Rathi stock… is better.”
🧾 TL;DR Summary
| Metric | Value |
|---|---|
| 5Y Profit CAGR | 37% 🚀 |
| ROE (FY25) | 45.3% 💸 |
| P/E Ratio | 55.7x 😬 |
| Dividend Payout | 39% ✅ |
| Risk | Liquidity + Valuation |
✍️ Written by Prashant | 📅 June 14, 2025
Tags: Anand Rathi Wealth, Mutual Fund Distributors, Capital Markets, Wealth Management, Nifty 500, High ROE Stocks, EduInvesting, SIP Growth, Non-Bank Financial Stocks
