⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ANANDRATHI - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | ANANDRATHI | Market Cap | 25,392 Cr. | Current Price | 3,061 ₹ | High / Low | 3,324 ₹ |
| Stock P/E | 70.2 | Book Value | 100 ₹ | Dividend Yield | 0.34 % | ROCE | 54.0 % |
| ROE | 42.7 % | Face Value | 5.00 ₹ | DMA 50 | 3,048 ₹ | DMA 200 | 2,795 ₹ |
| Chg in FII Hold | 1.10 % | Chg in DII Hold | 0.72 % | PAT Qtr | 99.8 Cr. | PAT Prev Qtr | 97.2 Cr. |
| RSI | 49.0 | MACD | 15.6 | Volume | 1,12,883 | Avg Vol 1Wk | 1,76,760 |
| Low price | 1,600 ₹ | High price | 3,324 ₹ | PEG Ratio | 2.13 | Debt to equity | 0.10 |
| 52w Index | 84.8 % | Qtr Profit Var | 31.8 % | EPS | 43.6 ₹ | Industry PE | 45.4 |
📊 Financials
- Revenue & Profitability: PAT improved from ₹97.2 Cr. to ₹99.8 Cr., showing steady growth. EPS at ₹43.6 reflects strong earnings capacity.
- Margins & Returns: ROCE at 54.0% and ROE at 42.7% are excellent, highlighting superior efficiency and profitability.
- Debt & Liquidity: Debt-to-equity ratio of 0.10 indicates very low leverage, ensuring financial resilience.
- Cash Flow: Dividend yield of 0.34% provides modest shareholder returns.
💹 Valuation
- P/E Ratio: 70.2 vs Industry PE of 45.4 — trading at a significant premium.
- P/B Ratio: Current price ₹3,061 vs Book Value ₹100 — ~30.6x book value, very expensive.
- PEG Ratio: 2.13 — suggests stretched valuation relative to growth.
- Intrinsic Value: Current price is above fair value, offering limited margin of safety.
🏢 Business Model & Competitive Advantage
- Strong presence in wealth management and financial services.
- High ROCE and ROE reflect operational excellence and competitive strength.
- Low debt enhances resilience and flexibility for expansion.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Reasonable accumulation range between ₹2,800 – ₹3,000, closer to DMA 50 support.
- Long-Term Holding: Strong fundamentals and industry tailwinds make it a good candidate for long-term holding, though valuations are stretched. Accumulate on dips.
✅ Positive
- Excellent ROCE (54%) and ROE (42.7%) highlight superior efficiency.
- Debt-to-equity ratio of 0.10 ensures financial stability.
- FII holdings increased by 1.10% and DII holdings by 0.72%, showing strong institutional confidence.
⚠️ Limitation
- Valuation multiples (P/E, P/B, PEG) suggest overvaluation.
- Dividend yield of 0.34% is low, limiting income appeal.
- Premium valuation compared to industry average PE.
📉 Company Negative News
- High P/E ratio (70.2) compared to industry average (45.4).
- Stock trading near resistance levels, with limited upside in short term.
📈 Company Positive News
- Quarterly PAT growth highlights consistent earnings trajectory.
- Strong institutional confidence with both FII and DII holdings increasing.
- MACD positive (15.6) indicates bullish technical momentum.
🏭 Industry
- Financial services sector benefits from rising wealth management demand and capital market growth.
- Industry PE at 45.4 is lower than company’s valuation, highlighting premium pricing for ANANDRATHI.
🔎 Conclusion
ANANDRATHI demonstrates strong fundamentals with excellent efficiency, low debt, and consistent earnings growth. However, valuations are stretched, trading at a significant premium compared to industry peers. Best strategy: accumulate cautiously near ₹2,800–₹3,000 and hold for long-term gains, leveraging industry growth and the company’s competitive strength.