Stock of this wealth management company has zoomed 139% in 4 months

Shares of Anand Rathi Wealth hit a new high of Rs 2,075, surging 9% in Wednesday's intraday. It has zoomed 196% thus far in the calendar year 2023

Shares of Anand Rathi Wealth hit a new high of Rs 2,075 as they rallied 9 per cent on the BSE in Wednesday's intraday trade, in an otherwise subdued market. The stock of the financial products distributor company surpassed its previous high of Rs 1,971.95 touched on October 9. In comparison, the S&P BSE Sensex was down 0.19 per cent at 63,754 at 10:51 AM.

The stock price of the company has zoomed 139 per cent in the past four months on the back of strong earnings for the first half (April to September) of the financial year 2023-24 (H1FY24). Thus far in the calendar year 2023, it has skyrocketed 196 per cent, as compared to 4.3 per cent rise in the S&P BSE Sensex.

Anand Rathi Wealth has revised its guidance upwards for the full financial year 2024 with revenue guidance now at Rs 720 crore from the earlier guidance of Rs 661 crore. The profit after tax (PAT) guidance has been revised to Rs 220 crore from the earlier guidance of Rs 205 crore.

Iin H1FY24, the company's revenue grew by 35 per cent year-on-year (YoY) to Rs 368 crore, while profit after tax (PAT) increased by 34 per cent YoY to Rs 111 crore. Total asset under management (AUM) rose 34 per cent YoY to Rs 47,957 crore.

India's position as one of the world's fastest-growing economies continues to attract investments in the equity markets. In H1FY24, equity mutual fund net flows increased by 14 per cent YoY to Rs 1,870 crore.

With the Indian economy poised for continued growth, the future holds promising opportunities for clients and wealth managers, the management said.

In the first half of the year, excluding SIP flows, the industry approximately witnessed an outflow of Rs 30,000 crore, while Anand Rathi Wealth saw inflows of more than Rs 1,600 crore during the same period. The Private Wealth vertical has consistently delivered YoY growth, and the management said it expects to see larger growth opportunities going forward.

Anand Rathi Wealth is amongst India's leading non-bank wealth solutions firms, catering to high and ultra-high net worth individuals. In addition to Private Wealth Vertical (PW),the cCompany has two new age technology led business verticals i.e., Digital Wealth (DW) and Omni Financial Advisors (OFA).

DW business is a fin-tech extension of the company’s proposition for the mass affluent segment with wealth solution delivered through a combination of human interface empowered with technology. OFA business is a strategic extension for capturing wealth management landscape to service retail clients through mutual fund distributors by using a technology platform.