In Thursday’s trading session, shares of one of the leading players in India’s wealth management sector, specializing in delivering customized financial solutions to high-net-worth individuals (HNIs), families, and institutional clients, jumped up to 8 percent following the Board announced it would consider a proposal for the issuance of bonus shares.
Price action
With a market capitalization of Rs. 16,088 crores on Thursday, the shares of Anand Rathi Wealth Limited were trading at Rs. 3,943 up by 8 percent making a high of Rs. 4,139.30 per share compared to its previous closing price of Rs. 3,834.40 per share.
What Happened
Anand Rathi Wealth Limited specializing in delivering customized financial solutions to high-net-worth individuals (HNIs), families, and institutional clients, has announced that the Board meeting is scheduled on Monday 13th January, regarding a proposal for Issuance of Bonus Shares to the shareholders of the Company.
About the company
Anand Rathi Wealth Limited is a prominent wealth management firm in India, offering a range of financial services, including investment advisory, portfolio management, and financial planning. The company caters to high-net-worth individuals (HNIs) and institutional clients, providing personalized wealth management solutions that align with their financial goals.
It focuses on holistic wealth management, ensuring clients’ portfolios are diversified across asset classes such as equities, fixed income, mutual funds, and alternative investments. Anand Rathi Wealth is known for its expertise in handling complex financial needs, and its client-first approach has helped it establish a loyal customer base.
Key Insights
The company has strong financial performance with an average Return on Equity (ROE) of 27.32 percent over the last three years. Additionally, it has maintained an average Return on Capital Employed (ROCE) of 34.47 percent during the same period. The company has also achieved an impressive average revenue growth of 20.16 percent over the past three years, coupled with a solid net profit growth of 21.29 percent.
Shareholding Pattern
The ownership structure of Anand Rathi Wealth Limited is as follows: the promoters hold 47.99 percent, Foreign Institutional Investors (FIIs) own 5.32 percent, Domestic Institutional Investors (DIIs) control 7.96 percent and the public holds 38.73 percent.
Financials
The company’s revenue rose by 32 percent from Rs 189.07 crore to Rs 249.63 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 57.69 crores to Rs 76.31 crore during the same period.
Key Financial ratios
Anand Rathi Wealth Limited has an impressive Return on Equity (RoE) of 47.64 percent and a Return on Capital Employed (RoCE) of 59.06 percent. Furthermore, the company’s debt-to-equity ratio is 0.12.
Written by Sridhar J
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