Anand Rathi Wealth hits record high, soars 8% on strong Q2 results

Shares of Anand Rathi Wealth hit a 52-week high of Rs 732.45 as the stock soared 8 per cent on the BSE in Friday’s intra-day trade after the company reported a strong 41 per cent year-on-year (YoY) growth in consolidated net profit at Rs 43 crore, on back of healthy revenue growth. Total revenue increased 33 per cent YoY at Rs 138 crore during the quarter.

The stock of non-bank wealth solutions firm surpassed its previous high of Rs 712, which it touched on April 19, 2022. The company made its stock market debut on December 14, 2021. It had raised funds by issuing shares at price of Rs 550 per share in initial public offering (IPO). At 10:05 AM, the stock traded 6 per cent higher at Rs 721, as compared to 1.8 per cent rise in the S&P BSE Sensex.

Anand Rathi Wealth reported strong growth in asset under management (AUM) of 16 per cent YoY at Rs 35,842 crore. The board has declared 100 per cent or Rs 5 per share interim dividend.

The management said the company delivered a strong performance across verticals coupled with an overall improvement in operational efficiencies. Inspite of the volatile market scenario the company has witnessed strong net flows of Rs 2,474 crore in H1FY23 which is more than double as compared to the net flows of Rs 1,202 crore same period of last year.

Anand Rathi Wealth has grown into a wide range of financial products consortium in India with a presence in sections such as non-banking financial services, wealth management, stock-broking, investment banking, and insurance broking. The Anand Rathi Group has grown its geographic reach and now has presence across India and the Middle East, which are serviced by business associates and representative office buildings firms.

Going forward, the wealth management demands of the potential customer would be defined by increased knowledge, a shift in attitude toward growing money rather than preserving wealth, and technological improvements. Thus, technology adoption is anticipated to play a major influence in determining the beneficiaries. The players who would successfully be able to cater the increased demand and have cost effective methods to service this clientele in a relevant manner would have a definite advantage over the long term, the company said in its FY22 annual report.