Anand Rathi Wealth share price jumps over 5% post strong Q2 results

In Friday's session, Anand Rathi Wealth share price surged by over 5% following the brokerage house's announcement of a 32.4% year-on-year (YoY) rise in net profit to ₹76.1 crore for the quarter ending September 30, 2024. Anand Rathi Wealth reported a net profit of ₹57.5 crore in the same quarter of the previous fiscal, as per the regulatory filing. 

Anand Rathi Wealth share price today opened at ₹4,202.05 apiece on BSE. The stock touched an intraday high of ₹4,280 and an intraday low of ₹4,102. According to the Trendlyne data, Anand Rathi Wealth stock price has increased by 113.48% over the past year, surpassing its sector average by 70.7%.

The company's revenue from operations grew by 32.8% YoY to ₹242.5 crore, compared to ₹182.6 crore in the same period last year.

According to the exchange filing, the company recorded a 70% YoY surge in mutual fund distribution revenue, amounting to ₹195 crore, and witnessed a 128% increase in net inflows at ₹5,700 crore.

The net inflows for equity mutual funds experienced a 64% uptick, totalling ₹3,116 crore, while the proportion of equity mutual funds in assets under management (AUM) expanded to 55% as of September 2024, compared to 50% in September 2023.

The annualised return on equity (ROE) for the company stood at 44%. The board also approved an interim dividend of ₹7 per equity share, which equals 140% of the face value of ₹5.

“In H1 FY25 our total revenue grew by 35% year-on-year to ₹495 crore and Profit after Tax was ₹150 crore, representing growth of 35% year-on-year. Our AUM has seen a significant increase of 57% to ₹75,084 crore. In the first half of FY25, we welcomed 1,066 new client families, bringing our total count of client families to 10,977. In alignment with our policy of rewarding shareholders, we have declared an interim dividend of ₹7 per share for FY25,” said Rakesh Rawal, Chief Executive Officer of the company.

Feroze Azeez, Anand Rathi Wealth's Deputy Chief Executive Officer, emphasised that the robust economic fundamentals of India have led to growing interest from domestic and international investors.

This pattern is evident in the continual inflow of funds into the stock markets, as new investments consistently reach unprecedented levels each month, said Azeez. This optimistic momentum is anticipated to enhance the Indian equity markets, creating a favourable atmosphere for long-term capital growth and expansion of the investor community, he added.

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