Synopsis: Shares of Anand Rathi Wealth plunged over 50% after turning ex-bonus for its 1:1 bonus issue, reflecting a price adjustment rather than business weakness.
This Mid-Cap Stock, engaged in wealth management, financial planning, investment advisory, and the distribution of mutual funds and other financial products for HNIs and UHNIs, crashed 50.64 percent in today’s intraday trade. In this article, we will explore the reasons for the stock’s fall.
With a market capitalization of Rs. 28,936.01 crore, the shares of Anand Rathi Wealth Limited were currently trading at Rs. 1,747.10 per equity share, down nearly 50.64 percent from its previous day’s close price of Rs. 3,539.30.
Reason Behind the Fall
On June 3, 2026, shares of Anand Rathi Wealth Limited fell nearly 50% from the previous day’s closing price of Rs. 3,539.30 per share. The stock later declined further and is currently trading at Rs. 1,746.10 per share.
This sharp drop was due to the stock adjusting for its 1:1 bonus issue record date and does not reflect a fundamental decline in the company’s value. The price correction reflects the bonus share allotment, which proportionately adjusted the stock price.
The board had decided to issue bonus shares at a ratio of 1:1, meaning that shareholders will receive one new fully paid-up equity share of Rs. 5 each for every one existing fully paid-up equity share they hold.
For example, if a shareholder owns 10,000 shares of Anand Rathi Wealth Limited, they will receive 10,000 bonus shares, bringing their total holding to 20,000 shares after the 1:1 bonus issue.
Assets Under Management (AUM)
Anand Rathi Wealth Limited reported strong growth in its Assets Under Management (AUM) during FY2025–26. The company’s AUM increased from Rs. 75,291 crore in March 2025 to Rs. 90,819 crore in March 2026, reflecting robust business expansion and growing investor confidence.
This steady rise underscores the strength of the company’s client relationships, consistent investment inflows, and expanding presence in the wealth management sector. The growth also highlights the effectiveness of its advisory services and its ability to attract and retain high-net-worth clients.
Company Overview
Anand Rathi Wealth Limited is a leading Indian wealth management and financial services company catering primarily to high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs). The company operates as a non-bank wealth solutions provider, offering comprehensive wealth management, financial planning, and advisory services.
The company distributes a wide range of financial products, including mutual funds, and serves clients across India as well as in select international markets. Through its client-centric approach and diversified investment solutions, the company aims to help individuals preserve and grow their wealth over the long term.
Recent Quarter Results
Coming into financial highlights, Anand Rathi Wealth Limited’s revenue has increased from Rs. 213 crore in Q4 FY25 to Rs. 277 crore in Q4 FY26, which has grown by 30.05 percent. The net profit has also grown by 41.67 percent from Rs. 72 crore in Q4 FY25 to Rs. 102 crore in Q4 FY26. Anand Rathi Wealth Limited’s revenue and net profit have grown at a CAGR of 35.96 percent and 54.79 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 57.5 percent and 45.3 percent, respectively. Anand Rathi Wealth Limited has an earnings per share (EPS) of Rs. 47.2, and its debt-to-equity ratio is 0.08x.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
