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Last Updated on: 05 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 543415 | NSE: ANANDRATHI

Anand Rathi Wealth Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 4, 2024, 9:01 pm

Market Cap 17,516 Cr.
Current Price 4,184
High / Low4,382/2,379
Stock P/E67.4
Book Value 140
Dividend Yield0.33 %
ROCE48.0 %
ROE37.3 %
Face Value 5.00
PEG Ratio2.17

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

View Share Price Target for Anand Rathi Wealth Ltd

Competitors of Anand Rathi Wealth Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Nam Securities Ltd 87.6 Cr. 162198/62.8243 21.20.00 %4.16 %3.05 % 10.0
Naperol Investments Ltd 767 Cr. 1,3352,041/801783 3,2040.00 %0.08 %0.05 % 10.0
Inani Securities Ltd 12.3 Cr. 27.042.0/20.58.48 42.20.00 %10.6 %6.92 % 10.0
HB Portfolio Ltd 108 Cr. 100177/58.014.6 2791.00 %3.34 %2.90 % 10.0
Haryana Capfin Ltd 178 Cr. 342448/0.0035.3 6130.00 %1.30 %0.97 % 10.0
Industry Average8,014.23 Cr2,179.294,022.475,698.840.27%15.36%17.19%7.44

All Competitor Stocks of Anand Rathi Wealth Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales98102109128132133137168175175177229234
Expenses565864737272789610097106133132
Operating Profit434445555961597175787196102
OPM %43%43%41%43%45%46%43%43%43%44%40%42%44%
Other Income12111233641276
Interest0011111122213
Depreciation3323333334445
Profit before tax414343535758597076767797101
Tax %26%25%22%25%25%26%26%25%26%26%28%26%25%
Net Profit30323439434343525757567275
EPS in Rs7.257.668.189.4810.2310.2910.3612.5613.5713.6413.2717.2717.92

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

Quarterly Chart

Profit & Loss - Annual Report

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

MonthMar 2016Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1214275327260408538720815
Expenses1136180213185230296400469
Operating Profit0789511475178242320346
OPM %26%36%35%35%29%44%45%44%42%
Other Income0661210030
Interest093332468
Depreciation044161211121417
Profit before tax071949662166226300352
Tax %21%29%30%26%29%24%26%26%
Net Profit050657144125168221260
EPS in Rs8.2237.4524.2226.3716.0730.1440.3452.9462.10
Dividend Payout %0%0%0%0%31%36%30%26%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-20232023-2024
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%

Anand Rathi Wealth Ltd 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:%
1 Year:61%
Return on Equity
10 Years:%
5 Years:35%
3 Years:38%
Last Year:37%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 5:53 pm

MonthMar 2016Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital0.191313141421212121
Reserves676141212266360484661564
Borrowings-011424839365166
Other Liabilities079581623582102160210
Total Liabilities7169213429362501644894861
Fixed Assets-099322093110131150
CWIP-0-0-06569-0-011
Investments462129193194193195202202
Other Assets3987513979215338559508
Total Assets7169213429362501644894861

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 2023Mar 2024
Free Cash Flow0.0077.0094.0072.0027.00139.00206.00269.00

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 2023Mar 2024
Debtor Days2481812914131114
Inventory Days
Days Payable
Cash Conversion Cycle2481812914131114
Working Capital Days81622-36-48-1326100192
ROCE %79%47%22%45%48%48%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters48.82%48.82%48.82%48.74%48.74%48.74%48.75%48.69%48.20%48.02%48.09%
FIIs1.03%1.02%0.90%0.84%0.81%1.71%2.11%1.84%3.01%4.86%5.02%
DIIs11.08%10.02%11.32%11.41%11.82%9.99%9.72%10.26%9.16%8.78%8.32%
Public39.07%40.14%38.95%39.01%38.63%39.56%39.42%39.21%39.64%38.35%38.56%
No. of Shareholders57,93945,43741,96039,02836,83135,64335,82137,14144,36944,30768,256

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund764,1971.49233.71423,3702024-12-0280.5%
SBI Small Cap Fund555,5780.68169.91423,3702024-12-0231.23%
DSP Small Cap Fund423,3700.93129.48423,3702024-12-020%
Canara Robeco Small Cap Fund412,7711.32126.24423,3702024-12-02-2.5%
Invesco India Multicap Fund233,7962.2871.5423,3702024-12-02-44.78%
ICICI Prudential Banking and Financial Services225,1200.9468.85423,3702024-12-02-46.83%
Quant Flexi Cap Fund225,0001.9468.81423,3702024-12-02-46.85%
Franklin India Smaller Companies Fund220,4810.5767.43423,3702024-12-02-47.92%
Invesco India ELSS Tax Saver Fund182,0652.2155.68423,3702024-12-02-57%
Invesco India Smallcap Fund125,5141.0538.39423,3702024-12-02-70.35%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21
FaceValue5.005.005.005.00
Basic EPS (Rs.)54.1040.4630.4910.87
Diluted EPS (Rs.)54.0340.2830.3610.74
Cash EPS (Rs.)58.6244.4334.2322.66
Book Value[Excl.RevalReserv]/Share (Rs.)158.16115.1685.3892.02
Book Value[Incl.RevalReserv]/Share (Rs.)158.16115.1685.3892.02
Revenue From Operations / Share (Rs.)173.17131.60100.3296.44
PBDIT / Share (Rs.)79.2459.5944.5430.35
PBIT / Share (Rs.)74.6155.6140.7723.91
PBT / Share (Rs.)73.0654.6740.2922.86
Net Profit / Share (Rs.)53.9940.4430.4716.22
NP After MI And SOA / Share (Rs.)53.7840.4030.4516.22
PBDIT Margin (%)45.7545.2844.3931.47
PBIT Margin (%)43.0842.2540.6424.78
PBT Margin (%)42.1941.5340.1623.69
Net Profit Margin (%)31.1730.7330.3716.81
NP After MI And SOA Margin (%)31.0530.6930.3516.81
Return on Networth / Equity (%)34.6735.9636.8718.46
Return on Capital Employeed (%)44.3845.7544.3523.02
Return On Assets (%)25.5726.9826.3913.13
Long Term Debt / Equity (X)0.000.010.040.10
Total Debt / Equity (X)0.010.030.070.13
Asset Turnover Ratio (%)0.960.991.020.00
Current Ratio (X)3.452.962.061.74
Quick Ratio (X)3.452.962.061.74
Dividend Payout Ratio (NP) (%)22.2427.2321.8915.41
Dividend Payout Ratio (CP) (%)20.4824.7819.4811.03
Earning Retention Ratio (%)77.7672.7778.1184.59
Cash Earning Retention Ratio (%)79.5275.2280.5288.97
Interest Coverage Ratio (X)51.2563.1591.8228.90
Interest Coverage Ratio (Post Tax) (X)35.9243.7663.8216.44
Enterprise Value (Cr.)15428.743334.422471.230.00
EV / Net Operating Revenue (X)21.306.085.920.00
EV / EBITDA (X)46.5513.4213.330.00
MarketCap / Net Operating Revenue (X)21.326.136.040.00
Retention Ratios (%)77.7572.7678.1084.58
Price / BV (X)23.807.197.340.00
Price / Net Operating Revenue (X)21.326.136.040.00
EarningsYield0.010.050.050.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Anand Rathi Wealth Ltd as of December 5, 2024 is: 3,531.24

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 5, 2024, Anand Rathi Wealth Ltd is Overvalued by 15.60% compared to the current share price 4,184.00

Intrinsic Value of Anand Rathi Wealth Ltd as of December 5, 2024 is: 4,627.46

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 5, 2024, Anand Rathi Wealth Ltd is Undervalued by 10.60% compared to the current share price 4,184.00

Last 5 Year EPS CAGR: 31.04%

*Investments are subject to market risks

Strength and Weakness

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

Stock Analysis

  • 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 Anand Rathi Wealth Ltd:
    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: 15.15%)
      • 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: 15.8%)
      • 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: 67.4 (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.
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 Navratan GuptaNon Executive Director
Mr. Rakesh RawalWholeTime Director & CEO
Mr. Mohan Vasant TanksaleIndependent Director
Mr. Ramesh ChandakIndependent Director
Mr. Kishan Gopal SomaniIndependent Director
Mrs. Sudha Pravin NavandarIndependent Director

FAQ

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

The latest intrinsic value of Anand Rathi Wealth Ltd as on 05 December 2024 is ₹3531.24, which is 15.60% lower than the current market price of ₹4,184.00. The stock has a market capitalization of 17,516 Cr. and recorded a high/low of ₹4,382/2,379 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 Anand Rathi Wealth Ltd?

The Market Cap of Anand Rathi Wealth Ltd is 17,516 Cr..

What is the current Stock Price of Anand Rathi Wealth Ltd as on 05 December 2024?

The current stock price of Anand Rathi Wealth Ltd as on 05 December 2024 is 4,184.

What is the High / Low of Anand Rathi Wealth Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Anand Rathi Wealth Ltd stocks is 4,382/2,379.

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

The Stock P/E of Anand Rathi Wealth Ltd is 67.4.

What is the Book Value of Anand Rathi Wealth Ltd?

The Book Value of Anand Rathi Wealth Ltd is 140.

What is the Dividend Yield of Anand Rathi Wealth Ltd?

The Dividend Yield of Anand Rathi Wealth Ltd is 0.33 %.

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