Shares of this multibagger small-cap stock jumped approximately 6 percent in Tuesday’s trading session after the company’s Board of Directors (BOD) is set to meet to consider the proposal for buyback of its equity shares. In the last five trading sessions, the company’s stock has gained nearly 15 percent for its holders.
With a market capitalization of Rs 16,583.04 crores, the stocks of Anand Rathi Wealth Limited started their trading session on Tuesday at Rs 3,999 and currently trades at Rs 3,964.55, gaining around 6 percent compared to the previous closing levels of Rs 3,735.40 apiece.
Such sharp share price movements were observed today after the company, via a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated that the company’s Board of Directors (BOD) has scheduled a meeting on Friday, 12th April 2024, for key decision-making activity.
The same pertains to the consideration of the proposal for the buyback of fully paid-up equity shares of the company of face value of Rs 5 each and other matters in accordance with the applicable provisions under the Companies Act, 2013, the SEBI (Buy-back of Securities) Regulations, 2018, and other applicable laws
During the recent financial quarters, i.e., quarters ended September and December 2023, the company’s basic business parameters, viz, its operating revenues as well as its after-tax profits, reported numbers staying at uniform levels with the former reported at levels of Rs 183 crores and the latter at levels of Rs 58 crores.
In addition to the above, the company’s ratio analysis portrays the return ratios, i.e., the return on equity (RoE) as well as the return on capital employed (RoCE), reported at decent numbers during FY22-23 with the former reported at 35.96 percent and the latter at 45.75 percent.
Keeping a purview of the last six months, the company’s stock has been successful in delivering multibagger returns of around 110 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.10 lakhs.
Incorporated in 1995, Anand Rathi Wealth Limited is an India-based company engaged in the business of distribution as well as the sale of Mutual Funds & other financial products. It distributes non-principal protected structured products, equity & debt mutual funds, and other financial products.
Written by Amit Madnani
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