1. At a Glance
Anand Rathi Wealth Ltd isn’t your average “let’s sell SIPs in the local bank branch” story. It’s the Ferrari showroom of wealth management where the clientele is mostly HNIs and Ultra-HNIs who probably complain that their chef didn’t plate the avocado right. With ₹77,103 Cr in assets under management (AUM), 198,000 rich families on speed dial, and a growth target of ₹1,00,000 Cr AUM by FY26, Anand Rathi looks less like a brokerage firm and more like an ATM for the privileged. The kicker? They deliver a 45% ROE while making retail investors feel like they’re window-shopping at Louis Vuitton with only ₹500 in their account.
2. Introduction
Let’s set the scene.
Imagine a world where banks are too boring, mutual fund apps too massy, and crypto bros too risky. Enter Anand Rathi Wealth Ltd (ARWL) – the “posh concierge” for your money. Incorporated in 1995, when “wealth management” in India basically meant your uncle telling you to buy LIC, ARWL has quietly grown into one of the top three non-bank mutual fund distributors.
And unlike your neighborhood insurance agent who’s always pushing you to buy a policy “for tax saving beta,” ARWL built a diversified empire. They pamper HNIs with personalized advice, hand-hold mass affluents with digital platforms, and even sell SaaS to distributors who dream of being Anand Rathi one day.
The story is juicy:
- From ₹559 Cr revenue in FY23 to ₹976 Cr in FY25.
- From 174,000 rich families in FY24 to 198,000 in FY25.
- A Dubai office already and now scouting the UK, because clearly, Europe needs more Indians explaining SIPs at 10 am over masala chai.
But here’s the punchline: despite being a ₹22,500 Cr market cap machine, the stock trades at aP/E of 70. That’s not valuation, that’s daylight robbery with consent. Still, when the company has 45% ROE, you can see why investors look the other way.
3. Business Model (WTF Do They Even Do?)
Let’s decode the circus:
a) Private Wealth – The Maharaja SuiteThe crown jewel. ₹75,291 Cr AUM, 198,000 client families, and 380 relationship managers (RMs). Fun fact: 79% of client wealth comes from loyalists who’ve stuck around for 3+ years, proving rich people hate paperwork as much as we do.
b) Digital Wealth – The Netflix Plan for Mass AffluentsThrough AR Digital Wealth, they serve 22 lakh clients, with ₹1,812 Cr AUM as of FY25 (up from ₹1,000 Cr in FY23). Basically, an app for people who want a taste of private wealth
without the minimum balance drama.
c) Omni Financial Advisor (OFA) – SaaS for DistributorsVia FFreedom Intermediary, they built a SaaS platform for MFDs/IFAs. As of FY25:
- 6,447 subscribers.
- ₹1,42,935 Cr assets managed.
- 2.2 million end-clients indirectly linked.
So, ARWL not only makes money from clients, but also from the people managing clients. The financial version of selling both Coke and the vending machine.
d) Value-Added ServicesEstate planning, succession planning, will creation. Basically, making sure your spoiled son doesn’t blow your empire on crypto and Lamborghinis.
Revenue Mix FY25: Equity 68%, Debt 14%, Others 18%. Which means they’re equity junkies, just like every Indian who buys SIPs and then Googles “Nifty crash kya karein.”
4. Financials Overview
Let’s get dirty with numbers:
Quarterly (Q1 FY26 vs Q1 FY25 and Q4 FY25):
| Metric | Latest Qtr (Q1 FY26) | YoY Qtr (Q1 FY25) | Prev Qtr (Q4 FY25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 274 | 238 | 222 | 15.1% | 23.4% |
| EBITDA (₹ Cr) | 128 | 98 | 91 | 30.6% | 40.7% |
| PAT (₹ Cr) | 94 | 73 | 74 | 28.8% | 27.0% |
| EPS (₹) | 11.3 | 8.8 | 8.9 | 28.8% | 26.9% |
Commentary:That’s not growth, that’s steroids. EPS annualized = ₹45.2 → P/E =59.9, not the 70 Screener flashed. Still expensive, but hey, luxury brands don’t discount.
5. Valuation (Fair Value RANGE only)
We use three tricks, because one is too mainstream:
a) P/E MethodEPS FY26 annualized = ₹45.2.Industry P/E = 54.4.Fair Range = ₹2,450 – ₹2,900.
b) EV/EBITDA MethodEBITDA FY25 = ₹430 Cr. EV/EBITDA Industry = ~40.Fair Value = (430 × 40) / 8.3 Cr shares ≈ ₹2,070 per share.
c)
