Anand Rathi Wealth Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:27 am

Market Cap	17,014 Cr.
Current Price	4,063
High / Low	4,646/2,500
Stock P/E	65.5
Book Value	140
Dividend Yield	0.34 %
ROCE	48.0 %
ROE	37.3 %
Face Value	5.00
PEG Ratio	2.11

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Multipurpose Trading & Agencies Ltd	5.23 Cr.	10.6	13.3/7.81	29.1	10.2	0.00 %	4.44 %	3.91 %	10.0
Munoth Financial Services Ltd	34.4 Cr.	67.0	81.3/54.6		21.2	0.00 %	1.71 %	1.79 %	10.0
Nam Securities Ltd	72.5 Cr.	134	198/65.6	201	21.2	0.00 %	4.16 %	3.05 %	10.0
Naperol Investments Ltd	733 Cr.	1,275	2,041/801	748	3,204	0.00 %	0.08 %	0.05 %	10.0
Inani Securities Ltd	13.2 Cr.	29.0	42.0/20.5	9.10	42.2	0.00 %	10.6 %	6.92 %	10.0
Industry Average	6,895.83 Cr	1,836.48		3,514.44	5,415.95	0.31%	15.08%	16.58%	7.38

All Competitor Stocks of

Quarterly Result

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Sales	98	102	109	128	132	133	137	168	175	175	177	229	234
Expenses	56	58	64	73	72	72	78	96	100	97	106	133	132
Operating Profit	43	44	45	55	59	61	59	71	75	78	71	96	102
OPM %	43%	43%	41%	43%	45%	46%	43%	43%	43%	44%	40%	42%	44%
Other Income	1	2	1	1	1	2	3	3	6	4	12	7	6
Interest	0	0	1	1	1	1	1	1	2	2	2	1	3
Depreciation	3	3	2	3	3	3	3	3	3	4	4	4	5
Profit before tax	41	43	43	53	57	58	59	70	76	76	77	97	101
Tax %	26%	25%	22%	25%	25%	26%	26%	25%	26%	26%	28%	26%	25%
Net Profit	30	32	34	39	43	43	43	52	57	57	56	72	75
EPS in Rs	7.25	7.66	8.18	9.48	10.23	10.29	10.36	12.56	13.57	13.64	13.27	17.27	17.92

Last Updated: November 6, 2024, 7:20 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 3:09 pm

Month	Mar 2016	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	1	214	275	327	260	408	538	720	815
Expenses	1	136	180	213	185	230	296	400	469
Operating Profit	0	78	95	114	75	178	242	320	346
OPM %	26%	36%	35%	35%	29%	44%	45%	44%	42%
Other Income	0	6	6	1	2	1	0	0	30
Interest	0	9	3	3	3	2	4	6	8
Depreciation	0	4	4	16	12	11	12	14	17
Profit before tax	0	71	94	96	62	166	226	300	352
Tax %	21%	29%	30%	26%	29%	24%	26%	26%
Net Profit	0	50	65	71	44	125	168	221	260
EPS in Rs	8.22	37.45	24.22	26.37	16.07	30.14	40.34	52.94	62.10
Dividend Payout %	0%	0%	0%	0%	31%	36%	30%	26%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	30.00%	9.23%	-38.03%	184.09%	34.40%	31.55%
Change in YoY Net Profit Growth (%)	0.00%	-20.77%	-47.26%	222.12%	-149.69%	-2.85%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2018-2019 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	21%
3 Years:	40%
TTM:	33%

Compounded Profit Growth
10 Years:	%
5 Years:	28%
3 Years:	71%
TTM:	33%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	92%
1 Year:	57%

Return on Equity
10 Years:	%
5 Years:	35%
3 Years:	38%
Last Year:	37%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:17 pm

Month	Mar 2016	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	0.19	13	13	14	14	21	21	21	21
Reserves	6	76	141	212	266	360	484	661	564
Borrowings	0	1	1	42	48	39	36	51	66
Other Liabilities	0	79	58	162	35	82	102	160	210
Total Liabilities	7	169	213	429	362	501	644	894	861
Fixed Assets	0	9	9	32	20	93	110	131	150
CWIP	0	0	0	65	69	0	0	1	1
Investments	4	62	129	193	194	193	195	202	202
Other Assets	3	98	75	139	79	215	338	559	508
Total Assets	7	169	213	429	362	501	644	894	861

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2016	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	0	97	57	143	-24	147	109	267
Cash from Investing Activity +	0	-91	-43	-156	52	-79	-44	-233
Cash from Financing Activity +	0	-7	-3	28	-17	-49	-64	-72
Net Cash Flow	0	-2	11	15	12	19	0	-37

Free Cash Flow

Month	Mar 2016	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	0.00	77.00	94.00	72.00	27.00	139.00	206.00	269.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Mar 2016	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	248	18	12	9	14	13	11	14
Inventory Days
Days Payable
Cash Conversion Cycle	248	18	12	9	14	13	11	14
Working Capital Days	816	22	-36	-48	-13	26	100	192
ROCE %			79%	47%	22%	45%	48%	48%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	48.82%	48.82%	48.82%	48.74%	48.74%	48.74%	48.75%	48.69%	48.20%	48.02%	48.09%
FIIs	1.03%	1.02%	0.90%	0.84%	0.81%	1.71%	2.11%	1.84%	3.01%	4.86%	5.02%
DIIs	11.08%	10.02%	11.32%	11.41%	11.82%	9.99%	9.72%	10.26%	9.16%	8.78%	8.32%
Public	39.07%	40.14%	38.95%	39.01%	38.63%	39.56%	39.42%	39.21%	39.64%	38.35%	38.56%
No. of Shareholders	57,939	45,437	41,960	39,028	36,831	35,643	35,821	37,141	44,369	44,307	68,256

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Quant Small Cap Fund	764,197	1.49	233.71	225,000	2024-12-19	239.64%
SBI Small Cap Fund	555,578	0.68	169.91	225,000	2024-12-19	146.92%
DSP Small Cap Fund	423,370	0.93	129.48	225,000	2024-12-19	88.16%
Canara Robeco Small Cap Fund	412,771	1.32	126.24	225,000	2024-12-19	83.45%
Invesco India Multicap Fund	233,796	2.28	71.5	225,000	2024-12-19	3.91%
ICICI Prudential Banking and Financial Services	225,120	0.94	68.85	225,000	2024-12-19	0.05%
Quant Flexi Cap Fund	225,000	1.94	68.81	225,000	2024-12-19	0%
Franklin India Smaller Companies Fund	220,481	0.57	67.43	225,000	2024-12-19	-2.01%
Invesco India ELSS Tax Saver Fund	182,065	2.21	55.68	225,000	2024-12-19	-19.08%
Invesco India Smallcap Fund	125,514	1.05	38.39	225,000	2024-12-19	-44.22%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21
FaceValue	5.00	5.00	5.00	5.00
Basic EPS (Rs.)	54.10	40.46	30.49	10.87
Diluted EPS (Rs.)	54.03	40.28	30.36	10.74
Cash EPS (Rs.)	58.62	44.43	34.23	22.66
Book Value[Excl.RevalReserv]/Share (Rs.)	158.16	115.16	85.38	92.02
Book Value[Incl.RevalReserv]/Share (Rs.)	158.16	115.16	85.38	92.02
Revenue From Operations / Share (Rs.)	173.17	131.60	100.32	96.44
PBDIT / Share (Rs.)	79.24	59.59	44.54	30.35
PBIT / Share (Rs.)	74.61	55.61	40.77	23.91
PBT / Share (Rs.)	73.06	54.67	40.29	22.86
Net Profit / Share (Rs.)	53.99	40.44	30.47	16.22
NP After MI And SOA / Share (Rs.)	53.78	40.40	30.45	16.22
PBDIT Margin (%)	45.75	45.28	44.39	31.47
PBIT Margin (%)	43.08	42.25	40.64	24.78
PBT Margin (%)	42.19	41.53	40.16	23.69
Net Profit Margin (%)	31.17	30.73	30.37	16.81
NP After MI And SOA Margin (%)	31.05	30.69	30.35	16.81
Return on Networth / Equity (%)	34.67	35.96	36.87	18.46
Return on Capital Employeed (%)	44.38	45.75	44.35	23.02
Return On Assets (%)	25.57	26.98	26.39	13.13
Long Term Debt / Equity (X)	0.00	0.01	0.04	0.10
Total Debt / Equity (X)	0.01	0.03	0.07	0.13
Asset Turnover Ratio (%)	0.96	0.99	1.02	0.00
Current Ratio (X)	3.45	2.96	2.06	1.74
Quick Ratio (X)	3.45	2.96	2.06	1.74
Dividend Payout Ratio (NP) (%)	22.24	27.23	21.89	15.41
Dividend Payout Ratio (CP) (%)	20.48	24.78	19.48	11.03
Earning Retention Ratio (%)	77.76	72.77	78.11	84.59
Cash Earning Retention Ratio (%)	79.52	75.22	80.52	88.97
Interest Coverage Ratio (X)	51.25	63.15	91.82	28.90
Interest Coverage Ratio (Post Tax) (X)	35.92	43.76	63.82	16.44
Enterprise Value (Cr.)	15428.74	3334.42	2471.23	0.00
EV / Net Operating Revenue (X)	21.30	6.08	5.92	0.00
EV / EBITDA (X)	46.55	13.42	13.33	0.00
MarketCap / Net Operating Revenue (X)	21.32	6.13	6.04	0.00
Retention Ratios (%)	77.75	72.76	78.10	84.58
Price / BV (X)	23.80	7.19	7.34	0.00
Price / Net Operating Revenue (X)	21.32	6.13	6.04	0.00
EarningsYield	0.01	0.05	0.05	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 3,432.04

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 22, 2024, is Overvalued by 15.53% compared to the current share price 4,063.00

Intrinsic Value of as of December 22, 2024 is: 4,497.46

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Undervalued by 10.69% compared to the current share price 4,063.00

Last 5 Year EPS CAGR: 31.04%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a high average ROCE of 36.13%, which is a positive sign. The company has higher reserves (307.78 cr) compared to borrowings (31.56 cr), indicating strong financial stability. The company has shown consistent growth in sales (395.33 cr) and profit (151.89 cr) over the years.	The stock has a high average Working Capital Days of 132.38, which may not be favorable. The stock has a high average Cash Conversion Cycle of 42.38, which may not be favorable.

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
1. Net Profit Margin: 31.17%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 44.38% (Industry Average ROCE: 15.08%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 34.67% (Industry Average ROE: 16.58%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 35.92
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 3.45
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 65.5 (Industry average Stock P/E: 3)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.01
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Anand Rathi Wealth Ltd. is a Public Limited Listed company incorporated on 22/03/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L67120MH1995PLC086696 and registration number is 086696. Currently Company is involved in the business activities of Activities auxiliary to financial service activities. Company’s Total Operating Revenue is Rs. 403.66 Cr. and Equity Capital is Rs. 20.81 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Finance & Investments	Express Zone, A Wing, 10th Floor, Mumbai Maharashtra 400063	csarwsl@rathi.com https://anandrathiwealth.in

Management
Name	Position Held
Mr. Anand Rathi	Chairman & Non-Exe.Director
Mr. Pradeep Navratan Gupta	Non Executive Director
Mr. Rakesh Rawal	WholeTime Director & CEO
Mr. Mohan Vasant Tanksale	Independent Director
Mr. Ramesh Chandak	Independent Director
Mr. Kishan Gopal Somani	Independent Director
Mrs. Sudha Pravin Navandar	Independent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹3432.04, which is 15.53% lower than the current market price of ₹4,063.00. The stock has a market capitalization of 17,014 Cr. and recorded a high/low of 4,646/2,500 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹564 Cr and total liabilities of ₹861 Cr.

What is the Market Cap of ?

The Market Cap of is 17,014 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 4,063.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 4,646/2,500.

What is the Stock P/E of ?

The Stock P/E of is 65.5.

What is the Book Value of ?

The Book Value of is 140.

What is the Dividend Yield of ?

The Dividend Yield of is 0.34 %.

What is the ROCE of ?

The ROCE of is 48.0 %.

What is the ROE of ?

The ROE of is 37.3 %.

What is the Face Value of ?

The Face Value of is 5.00.