Anand Rathi Wealth surges 17%, hits record high on healthy Q1 performance

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

Shares of Anand Rathi Wealth hit a record high of Rs 1,089, as they rallied 17 per cent on the BSE in Thursday's intra-day trade after the company reported a healthy performance in the April-June quarter (Q1FY24). Its revenue growth came in at 21.3 per cent to Rs 178 crore, driven by healthy growth of 11.3 per cent quarter-on-quarter (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 witnessed strong uptick with AUM increasing by 36 per cent YoY to Rs 19,982 crore; however healthy traction in non-MF portfolio remains primary driver for revenue. 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 said the strong performance was fueled by the 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.

As Indian economy continues to expand and progress, coupled with a growing number of millionaires and billionaires in the country, the management believes, there will be an immense opportunity for professional wealth managers.

India has a huge scope of penetration towards professionally managed financial assets like mutual funds when compared to the global average, which is 4x of India. This creates more opportunity for wealth management industry.

"Interest in equities has gone up as it’s one of the few asset classes that can deliver double digit returns. There is massive potential to increase the share of equity in client portfolios. Equity investment needs guidance, thereby, creating huge opportunity for wealth outfits. HNI population in India is expected to grow at a CAGR of 15.7 per cent from 2022 to 2027E," the company said.