ANANDRATHI - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Here’s a sharp breakdown of Anand Rathi Wealth Ltd. (ANANDRATHI) — a top-tier player in India’s wealth management arena, boasting elite-level return metrics and operational strength, albeit trading at frothy valuations.

💼 Core Financial Highlights

Profitability & Growth

ROE: 45.3% and ROCE: 56.3% — stellar capital efficiency, reflecting a high-margin business model.

EPS: ₹38.6 — solid earnings delivery that supports premium valuations.

Quarterly PAT: ₹93.6 Cr vs ₹73.4 Cr — +27.8% growth, impressive scalability and operational expansion.

Leverage & Payouts

Debt-to-Equity: 0.12 — conservative capital structure.

Dividend Yield: 0.39% — modest, reinforcing growth prioritization.

📊 Valuation Dashboard

Metric Value Commentary

P/E Ratio 69.7 ⚠️ Richly priced vs Industry PE: 63.4

P/B Ratio ~33.1 Steep premium to Book Value ₹81.2

PEG Ratio 2.08 🚩 Indicates price may be running ahead of earnings growth

Intrinsic Value ❌ Slightly Below CMP Suggests caution; fundamentals strong but valuation stretched

🧠 Business Model & Competitive Edge

Specializes in wealth management for HNIs, offering advisory, execution, and portfolio services.

Asset-light and scalable — with recurring fee income and strong wallet-share capture.

Robust branding and digital adoption have accelerated client onboarding.

Institutional Trends

FII ↑ +0.05%

DII ↑ +1.19% — positive domestic outlook despite stretched RSI.

📈 Technical Snapshot

RSI: 75.5 — strongly overbought; potential near-term cooling.

MACD: +162 — powerful bullish trend, supported by high volume.

Trading above both DMA 50 & DMA 200 — technically strong.

CMP hugging 52W high ₹2,700 — near breakout level, but entry here carries volatility risk.

🎯 Suggested Entry Zone & Long-Term Strategy

Entry Zone: ₹2,250–₹2,350 — preferable during mild corrections or consolidation.

Long-Term View

Ideal for investors targeting high-ROE compounders in financial services.

Maintain caution due to lofty multiples — future performance must justify price.

Monitor AUM growth, client churn, fee structure trends, and cost-to-income ratios.

Would you like help comparing Anand Rathi against peers like Nuvama Wealth, 360 One WAM, or Geojit to rank risk-adjusted returns and valuation comfort? I can spin up a clean matrix to navigate that with ease 📊💼.

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