Anand Rathi hits record high on healthy Q1 results; stock up 43% in a month

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Shares of Anand Rathi Wealth rallied 7 per cent to hit a new high of Rs 1,246.15 in Tuesday’s intra-day trade. In comparison, the S&P BSE Sensex was flat at 66,530, as of 2:24 pm.

The stock of non-bank wealth solutions firm, catering to high and ultra-high net worth individuals continued its upward movement after it reported a healthy performance in the April-June quarter (Q1FY24).

In the past one month, the stock soared 43 per cent, as against a 2 per cent rise in the S&P BSE Sensex.

The management hailed the Q1 performance and said that the demand for wealth management services has increased significantly due to availability of a wide range of investment options. These include mutual funds, insurance products and pension schemes.

"The growth potential of wealth management services in India is poised to replicate rapid increase in income levels and the number of HNIs that the country is expected to witness. This shift in mindset towards managing wealth has created a positive sentiment in wealth management space, indicating positive outlook for the industry," the management added.

Meanwhile, in Q1FY24, the company’s revenue growth increased by 21.3 per cent quarter-on-quarter (QoQ) to Rs 178 crore, driven by healthy growth of 11.3 per cent QoQ in assets under management (AUM). On year-on-year (YoY) basis, revenue and AUM grew 33.6 per cent and 32 per cent, respectively.

The company's mutual fund (MF) portfolio, meanwhile, witnessed strong uptick with AUM increasing by 36 per cent YoY to Rs 19,982 crore. Profit after tax growth came at 24.6 per cent QoQ and 34 per cent YoY in Q1FY24 to Rs 53.2 crore.

The management, further, said that the strong performance was fueled by robust growth in AUM, which witnessed 32 per cent YoY increase, reaching to Rs 43,413 crore.

"This growth was driven by cumulative efforts of team and favorable market conditions. The company has over 8,700 client families, out of which 62 per cent are with it for more than 3 years and account for 80 per cent of total AUM of the company," they added.