The shares of this small-cap wealth management company surged 5.5% in Friday’s trading after the company reported net profit growth of 32.3% in Q2FY25 results.
Stock Action:
Anand Rathi Wealth Ltd, holding a market cap of Rs. 16,807.94 Crores, saw its shares rise to Rs. 4,280 per share, up from its previous close of Rs. 4,055.70 per share.
The reason behind the Action:
Anand Rathi Wealth Ltd reported a 32.8% year on year increase in revenue from operations, reaching Rs. 242.5 crore in Q2 FY25, compared to Rs. 182.6 crore in the same period last year, while net profits were up 32.3% from Rs. 57.7 Crores in Q2 2024 to Rs. 76.3 Crores in Q2 2025.
Mutual fund distribution revenue grew by 70% year on year to Rs. 195 crore, with a 128% increase in net inflows to Rs. 5,700 crore. Equity mutual funds saw a 64% rise in net inflows, reaching Rs. 3,116 crore, and the proportion of equity funds in assets under management expanded to 55% in September 2024, up from 50% in September 2023.
AUM saw significant growth of 56.6%, reaching Rs. 75,084 crore, and the company added 1,066 new client families, bringing the total to 10,977.
CEO Rakesh Rawal highlighted the company’s focus on growth, while Deputy CEO Feroze Azeez pointed to strong economic fundamentals and growing interest from both domestic and international investors. This has fueled consistent inflows into the stock markets, supporting long-term capital growth.
Financials:
The company reported revenues of Rs. 724.32 Crores in FY 2024, up from Rs. 548.63 Crores in FY 2023, resulting in 32.02% year-on-year growth, and net income for the same period increased from Rs. 168.23 Crores to Rs. 225.82 Crores, resulting in 34.2% growth in net income.
Shareholding Pattern:
As of the June quarter, shareholding pattern the company promoters own 48.09% stake, while Foreign institutional investors own 5.02% of the company, Domestic institutional investors own 8.33% of the company, and the retail investors hold 38.57% stake in the company.
About the Company:
Anand Rathi Wealth Ltd, has been in operation since 2002, focusing on Private Wealth management for high-net-worth individuals (HNIs). It is registered with AMFI as a Mutual Fund Distributor and manages assets of over INR 75,084 crores for approximately 10,977 families in India and internationally. The firm employs over 374 Relationship Managers and has a presence in 18 locations, including major Indian cities and Dubai.
The company aims to streamline the Private Wealth process for clients, emphasizing long-term relationship building. Its core values include a transparent approach and data-driven decision-making, which are designed to support clients in achieving their investment objectives. Anand Rathi also offers services related to financial planning, including safety nets against unforeseen circumstances and estate planning to facilitate wealth transfer with minimal loss.
Written By: Arvind jv
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