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Anand Rathi Wealth Surges 6% on Strong Q4 Results, Shares Hit Record High

Anand Rathi Wealth posted a strong fourth-quarter performance, with shares surging 7% and a dividend of Rs 7 per share.

Shares of Anand Rathi Wealth surged 6% to Rs 884, hitting a new high on the BSE in intraday trade on Thursday after Anand Rathi group of companies reported a 23% year-on-year growth in consolidated business. Net profit for the January-March 2023 quarter (Q4FY23) was Rs 43 crore. Total revenue rose 28% year-on-year to Rs 147 crore.

For FY23, the company’s revenue rose 31% year-on-year to Rs 558 crore and profit after tax rose 33% to Rs 169 crore. The company’s holistic approach also contributed to solid assets under management (AUM) growth of 18% year-on-year to Rs 38,993 crore, management said.

Meanwhile, the board has declared a final dividend of Rs 7 per share (140%) in the company with a par value of Rs 5 per share.

The company has outperformed its own expectations in its last year as a public company. Management expects a long-term focus on providing clients with the most effective wealth solutions to see the company grow 20-25% over the next few years.

The Indian economy has remained resilient amid geopolitical tensions, high inflation and high-interest rates. Management said the economy would likely perform well this year as inflation expectations moderate and the investment cycle recovers.

Given the increase in income and savings, management believes there is a largely untapped market in the wealth management industry.

Anand Rathi Wealth is one of India’s leading non-bank wealth solutions firms serving high-net-worth and ultra-high-net-worth individuals. The company made its stock market debut on December 14, 2021. It currently offers a 61% premium to the issue price of Rs 550 per share.

The stock was up 4% at Rs 865 at 11:01 am, while the S&P BSE Sensex was down 0.3%. It surpassed the previous high of Rs 861.25 on February 1, 2023.

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