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Last Updated on: 23 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 543415 | NSE: ANANDRATHI

Fundamental Analysis of Anand Rathi Wealth Ltd

Basic Stock Data

Last Updated: April 23, 2024, 12:33 pm

Market Cap 16,514 Cr.
Current Price 3,955
High / Low4,248/836
Stock P/E74.6
Book Value 163
Dividend Yield0.30 %
ROCE48.0 %
ROE37.3 %
Face Value 5.00

Data Source: screener.in

Competitors of Anand Rathi Wealth Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Wealth First Portfolio Managers Ltd 799 Cr. 750780/26226.8 87.00.40 %25.5 %19.1 % 10.0
Arman Holdings Ltd 33.9 Cr. 65.0100/0.001,693 11.60.00 %0.48 %0.32 % 10.0
Amarnath Securities Ltd 18.3 Cr. 61.062.5/23.3108 14.10.00 %5.67 %4.93 % 10.0
Abhishek Finlease Ltd 17.1 Cr. 40.243.7/20.4114 10.10.00 %3.33 %2.17 % 10.0
Ugro Capital Ltd 2,326 Cr. 251320/16923.1 1480.00 %10.9 %4.08 % 10.0
Industry Average638.86 Cr233.44392.9854.160.08%9.18%6.12%10.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales65679498102109128132133137168175175
Expenses445452565864737272789610097
Operating Profit20134243444555596159717578
OPM %32%20%45%43%43%41%43%45%46%43%43%43%44%
Other Income1301211123364
Interest1110011111122
Depreciation3333323333334
Profit before tax17133941434353575859707676
Tax %26%41%25%26%25%22%25%25%26%26%25%26%26%
Net Profit1382930323439434343525757
EPS in Rs4.602.8510.597.257.668.189.4810.2310.2910.3612.5613.5713.64

Last Updated: April 10, 2024, 6:00 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 5, 2024, 11:29 pm

MonthMar 2016Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1214275327260408538655
Expenses1136180213185230296371
Operating Profit0789511475178242284
OPM %26%36%35%35%29%44%45%43%
Other Income066121017
Interest09333246
Depreciation0441612111213
Profit before tax071949662166226281
Tax %21%29%30%26%29%24%26%
Net Profit050657144125168209
EPS in Rs8.2237.4524.2226.3716.0730.1440.3450.13
Dividend Payout %0%0%0%0%31%36%30%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)30.00%9.23%-38.03%184.09%34.40%
Change in YoY Net Profit Growth (%)0.00%-20.77%-47.26%222.12%-149.69%

Growth

Compounded Sales Growth
10 Years:%
5 Years:20%
3 Years:39%
TTM:29%
Compounded Profit Growth
10 Years:%
5 Years:28%
3 Years:71%
TTM:32%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:378%
Return on Equity
10 Years:%
5 Years:35%
3 Years:38%
Last Year:37%

Last Updated: April 16, 2024, 6:24 pm

Balance Sheet

MonthMar 2016Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital013131414212121
Reserves676141212266360484567
Borrowings0114248393619
Other Liabilities079581623582102190
Total Liabilities7169213429362501644797
Fixed Assets099322093110125
CWIP0006569000
Investments462129193194193193197
Other Assets3987513979215341475
Total Assets7169213429362501644797

Reserves and Borrowings Chart

Cash Flow

MonthMar 2016Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 09757143-24147109267
Cash from Investing Activity 0-91-43-15652-79-44-233
Cash from Financing Activity 0-7-328-17-49-64-72
Net Cash Flow0-2111512190-37

Free Cash Flow

MonthMar 2016Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow0.0077.0094.0072.0027.00139.00206.00

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

MonthMar 2016Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days24818129141311
Inventory Days
Days Payable
Cash Conversion Cycle24818129141311
Working Capital Days81622-36-48-1326102
ROCE %79%47%22%45%48%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters48.82%48.82%48.82%48.74%48.74%48.74%48.75%48.69%48.20%
FIIs1.03%1.02%0.90%0.84%0.81%1.71%2.11%1.84%3.01%
DIIs11.08%10.02%11.32%11.41%11.82%9.99%9.72%10.26%9.16%
Public39.07%40.14%38.95%39.01%38.63%39.56%39.42%39.21%39.64%
No. of Shareholders57,93945,43741,96039,02836,83135,64335,82137,14144,369

Shareholding Pattern Chart

No. of Shareholders

Anand Rathi Wealth Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Quant Small Cap Fund7641971.49233.71
SBI Small Cap Fund5555780.68169.91
DSP Small Cap Fund4233700.93129.48
Canara Robeco Small Cap Fund4127711.32126.24
Invesco India Multicap Fund2337962.2871.5
ICICI Prudential Banking and Financial Services2251200.9468.85
Quant Flexi Cap Fund2250001.9468.81
Franklin India Smaller Companies Fund2204810.5767.43
Invesco India ELSS Tax Saver Fund1820652.2155.68
Invesco India Smallcap Fund1255141.0538.39

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21
FaceValue5.005.005.00
Basic EPS (Rs.)40.4630.4910.87
Diluted EPS (Rs.)40.2830.3610.74
Cash EPS (Rs.)44.4334.2322.66
Book Value[Excl.RevalReserv]/Share (Rs.)115.1685.3892.02
Book Value[Incl.RevalReserv]/Share (Rs.)115.1685.3892.02
Revenue From Operations / Share (Rs.)131.60100.3296.44
PBDIT / Share (Rs.)59.5944.5430.35
PBIT / Share (Rs.)55.6140.7723.91
PBT / Share (Rs.)54.6740.2922.86
Net Profit / Share (Rs.)40.4430.4716.22
NP After MI And SOA / Share (Rs.)40.4030.4516.22
PBDIT Margin (%)45.2844.3931.47
PBIT Margin (%)42.2540.6424.78
PBT Margin (%)41.5340.1623.69
Net Profit Margin (%)30.7330.3716.81
NP After MI And SOA Margin (%)30.6930.3516.81
Return on Networth / Equity (%)35.9636.8718.46
Return on Capital Employeed (%)45.7544.3523.02
Return On Assets (%)26.9826.3913.13
Long Term Debt / Equity (X)0.010.040.10
Total Debt / Equity (X)0.030.070.13
Asset Turnover Ratio (%)0.940.950.00
Current Ratio (X)2.962.061.74
Quick Ratio (X)2.962.061.74
Dividend Payout Ratio (NP) (%)27.2321.8915.41
Dividend Payout Ratio (CP) (%)24.7819.4811.03
Earning Retention Ratio (%)72.7778.1184.59
Cash Earning Retention Ratio (%)75.2280.5288.97
Interest Coverage Ratio (X)63.1591.8228.90
Interest Coverage Ratio (Post Tax) (X)43.7663.8216.44
Enterprise Value (Cr.)3334.422471.230.00
EV / Net Operating Revenue (X)6.085.920.00
EV / EBITDA (X)13.4213.330.00
MarketCap / Net Operating Revenue (X)6.136.040.00
Retention Ratios (%)72.7678.1084.58
Price / BV (X)7.197.340.00
Price / Net Operating Revenue (X)6.136.040.00
EarningsYield0.050.050.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 4549.21

The stock is undervalued by 15.02% compared to the current price ₹3955

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 34.43%, which is a positive sign.
  2. The company has higher reserves (275.75 cr) compared to borrowings (27.25 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (334.75 cr) and profit (124.50 cr) over the years.
  1. The stock has a high average Working Capital Days of 124.14, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 46.43, which may not be favorable.

Stock Analysis

  • Based on the analysis of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Anand Rathi Wealth Ltd:
    1. Net Profit Margin: 30.73% (Higher values are generally favorable)
      • 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: 45.75% (Industry Average ROCE: 39.79%)
      • 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%: 35.96% (Industry Average ROE: 28.26%)
      • 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): 43.76 (Higher values, preferably > 2, are recommended)
      • 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: 2.96 (Higher values, preferably > 1, are recommended)
      • 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: 74.6 (Industry average Stock P/E: 260.54)
      • 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: 0.03 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.
    Stock Rating: ★★★★★

About the Company

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.
INDUSTRYADDRESSCONTACT
Finance & InvestmentsExpress Zone, A Wing, 10th Floor, Mumbai Maharashtra 400063csarwsl@rathi.com
https://anandrathiwealth.in
Management
NamePosition Held
Mr. Anand RathiChairman & Non-Exe.Director
Mr. Pradeep GuptaNon Executive Director
Mr. Rakesh RawalExecutive Director & CEO
Mr. Mohan TanksaleIndependent Director
Mr. Ramesh ChandakIndependent Director
Mr. Kishan Gopal SomaniIndependent Director
Mrs. Sudha NavandarIndependent Director

Anand Rathi Wealth Ltd. Share Price Update

Share PriceValue
Today₹3,965.40
Previous Day₹4,028.60

FAQ

What is the latest fair value of Anand Rathi Wealth Ltd?

The latest fair value of Anand Rathi Wealth Ltd is ₹4549.21.

What is the Market Cap of Anand Rathi Wealth Ltd?

The Market Cap of Anand Rathi Wealth Ltd is 16,514 Cr..

What is the current Stock Price of Anand Rathi Wealth Ltd as on 23 April 2024?

The current stock price of Anand Rathi Wealth Ltd as on 23 April 2024 is 3,955.

What is the High / Low of Anand Rathi Wealth Ltd stocks in FY 2024?

In FY 2024, the High / Low of Anand Rathi Wealth Ltd stocks is ₹4,248/836.

What is the Stock P/E of Anand Rathi Wealth Ltd?

The Stock P/E of Anand Rathi Wealth Ltd is 74.6.

What is the Book Value of Anand Rathi Wealth Ltd?

The Book Value of Anand Rathi Wealth Ltd is 163.

What is the Dividend Yield of Anand Rathi Wealth Ltd?

The Dividend Yield of Anand Rathi Wealth Ltd is 0.30 %.

What is the ROCE of Anand Rathi Wealth Ltd?

The ROCE of Anand Rathi Wealth Ltd is 48.0 %.

What is the ROE of Anand Rathi Wealth Ltd?

The ROE of Anand Rathi Wealth Ltd is 37.3 %.

What is the Face Value of Anand Rathi Wealth Ltd?

The Face Value of Anand Rathi Wealth Ltd is 5.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Anand Rathi Wealth Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE