ANANDRATHI - Investment Analysis

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

Investment Rating: 4.3

📊 Fundamental Analysis Summary

Anand Rathi Wealth (ANANDRATHI) is a high-quality financial services company with exceptional capital efficiency and strong earnings momentum. Its low debt and consistent profit growth make it a compelling long-term investment. However, the current valuation is rich, and technical indicators suggest short-term overheating.

Metric Value Interpretation

P/E Ratio 69.7 High — priced for growth, slightly above industry average

PEG Ratio 2.08 Overvalued relative to growth — caution for fresh entry

ROE / ROCE 45.3% / 56.3% Outstanding — top-tier capital efficiency

Dividend Yield 0.39% Low — reinvestment-focused strategy

Debt-to-Equity 0.12 Very low — strong financial health

EPS ₹38.6 Solid earnings — supports valuation

PAT Growth (QoQ) +27.8% Strong — earnings momentum intact

Book Value ₹81.2 Price-to-book ~33× — very high, but justified by ROE

RSI / MACD 75.5 / +162 RSI overbought; MACD strong — short-term overheating

DMA 50 / 200 ₹2,232 / ₹1,982 Price well above both — bullish trend

52W Price Range ₹1,586 – ₹2,700 At 52-week high — not ideal for fresh entry

FII/DII Change +0.05% / +1.19% Institutional accumulation — positive sentiment

📉 Ideal Entry Price Zone

Entry Zone: ₹2,300 – ₹2,450

Near 50-DMA and below RSI 60 — better risk-reward.

Avoid entry above ₹2,650 unless PEG improves and RSI cools off.

🧭 Exit Strategy & Holding Period

Holding Period

5+ years — ideal for long-term compounding through high ROE and earnings growth.

Exit Strategy

Consider partial exit if PEG rises above 3.0 or ROE drops below 30%.

Reassess if price exceeds ₹2,900 without corresponding EPS or PAT growth.

Key Metrics to Monitor

ROCE consistently above 50%

PEG ratio trending below 1.5

PAT growth > 20% YoY

EPS trending above ₹45+

🧠 Final Thoughts

Anand Rathi Wealth is a premium financial stock with elite capital efficiency and strong growth momentum. While valuation is stretched, its fundamentals justify long-term holding. Ideal for investors seeking wealth creation through financial sector exposure and compounding returns.

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