 "Anand Rathi Wealth hits 52-week low; slips 21% in 7 days post 1:1 ex-bonus")
Anand Rathi Wealth share price hit a 52-week low of Rs 1,608, down 2.5 per cent on the BSE in Thursday's intraday trade, in an otherwise firm market. The stock was trading lower for the fourth straight day, down 14 per cent during the period. Besides, Anand Rathi Wealth shares are quoting at their lowest level since February 2024.
Since March 5, in the last seven trading days, thr stock has slipped 21 per cent after the it tock turned ex-bonus in the ratio of 1:1 i.e. one new equity share for every one existing equity share held by the eligible shareholders as on the Record Date.
The company had fixed March 5 as the Record Date to determine the eligibility of shareholders for the issue of bonus equity shares and March 6 as the deemed date of allotment.
Meanwhile, the market price of Anand Rathi Wealth stock has fallen below its share buyback price of Rs 2,225 (adjusted to 1:1 bonus). In July 2024, the company had bought back 370,000 shares for Rs 164.65 crore at a price of Rs 4,450 per share. ALSO READ: Stock Market Updates Today LIVE
Anand Rathi Wealth and its subsidiaries are engaged in the business of providing services for distribution and sale of financial products.
Meanwhile, prior to ex-bonus, the company's promoters had sold 350,000 equity shares, representing 0.72 per cent holding of the company, via open market.
Also Read
Anand Rathi Wealth informed the stock exchanges that Anand Rathi, one of the promoters of the company, had sold 100,000 equity shares on February 27, 2025, 50,000 equity shares on March 3, 2025 and 30,000 equity shares on March 4, 2025. Navratan Mal Gupta HUF had sold 100,000 equity shares of the company on February 27, 2025, and 20,000 equity shares on March 4, 2025, according to disclosures made by Anand Rathi Wealth.
As per the shareholding pattern, as on March 6, 2025, the total promoters holding in the company decreased to 47.27 per cent from 47.99 per cent at the end of December 2024 quarter. ALSO READ: Gensol Engineering slides for 13th straight day, stock down 65% in 2025
According to the brokerage firm Ventura, Anand Rathi's wealth management vertical is expected to grow at a 10-12 per cent compound annual growth rate (CAGR) over the next seven years to $331 billion by 2032, presenting a substantial growth runway. Over FY21-24, Anand Rathi Wealth provided its clients with a ~14 per cent yield on its managed portfolio, which is invested across mutual funds and structured products.
This impeccable performance has led to its asset under management (AUM) swelling to Rs 75,084 crore (~70 per cent 3 year CAGR) built across 10,977 clients, the brokerage firm said.
As per the company's December 2024 quarter (Q3FY25) investor presentation, Anand Rathi Wealth's AUM stood at Rs 74,574 crore with active client families of 11,426.
The company recorded 38.8 per cent year-on-year (Y-o-Y) growth in AUM during the quarter.
Consolidated profit after tax grew 33.2 per cent Y-o-Y at Rs 58 crore on the back of 29.9 per cent Y-o-Y growth in revenue from operations of Rs 237 crore.
"The company has a strong appetite to increase exposure to Anand Rathi Wealth's AUM and thus provide for long term revenue visibility. The fact that there has been zero client attrition speaks volumes about the strong customer loyalty and satisfaction," according to Ventura. ALSO READ: VA Tech share price rises 2% on bagging orders of Rs 360-cr from GAIL, IOCL
The brokerage firm, in its January 2025 report, said they believed that the workforce operates at ~50 per cent utilisation rates and Anand Rathi Wealth can sustain its projected 36 per cent CAGR growth to Rs 1.43 trillion over the period FY24-27 without any significant ramp up in RM nos.
This AUM mobilisation is expected from new monies from existing relationships, new client onboarding, and compounding of the reinvested returns (10-12 per cent has been the compounding rate over the last 2 decades).