Price of This Stock Tripled in Just One Year. Gave Returns of Nearly 250% to Investors

Ajit Kushwaha

Over the past year, the shares of Anand Rathi Wealth Limited have witnessed a remarkable surge, delivering exceptional returns. Closing at ₹2,684 on January 15, 2024, compared to ₹792 on January 16, 2023, the stock has experienced a significant increase of 238%.

The Mumbai-based non-bank wealth manager was listed on the stock exchanges on December 17, 2021. The highly anticipated listing saw shares debut at a 12% premium to the issue price.

Anand Rathi Wealth has become a highly sought-after midcap stock, delivering impressive returns to investors despite market fluctuations and unpredictability.

Anand Rathi Wealth Ltd. has recently announced impressive results for the third quarter and nine months ended December 31, 2023.

A Mumbai-based wealth management firm has reported a consolidated net profit of Rs 58 crore for Q3 FY24, showing a strong 34% increase compared to Rs 43 crore in the corresponding quarter of the previous year.

The company witnessed a significant increase in its revenue from operations, with a jump of 34% to Rs 187.3 crore in Q3 FY24, as compared to Rs 139.7 crore in Q3 FY23.

The total value of assets under management (AUM) was Rs 47,957 crore as of December 31, 2023, which marks a significant increase of 34% compared to the previous year’s figure of Rs 35,810 crore as of December 31, 2021.

Strong Client Addition Boosts AUM Growth

Anand Rathi Wealth offers comprehensive wealth management services tailored for affluent individuals and families in India. The company’s unwavering dedication to putting clients first has resulted in a consistent growth in its customer base throughout the years.

By December 31, 2023, Anand Rathi Wealth had extended its services to 9,641 families throughout the nation, welcoming 1,005 new families in the nine months leading up to December 31, 2023. The company has successfully onboarded 45 new relationship managers over the past 12 months, bringing the total count to 392.

The impressive 34% year-on-year increase in AUM was fueled by significant client acquisitions, a well-balanced product mix, and favorable market movement. Equity assets made up 62% of the total AUM. Anand Rathi Wealth has developed an approach that emphasizes simplicity, flexibility, and transparency.

Holistic Offerings Drive Growth Momentum

Anand Rathi Wealth has embraced a straightforward, all-encompassing approach to wealth management that seamlessly integrates the client’s financial life across various areas such as investments, taxes, estate planning, succession, and will creation. This integrated approach has allowed the company to achieve steady growth.

The company provides meticulously crafted solutions customized to specific requirements across various asset classes including equity, fixed income, real estate, bullion, offshore investments, and more. Advisory services are also offered for loans, insurance, accounting, valuations, and philanthropy.

By catering to the ever-changing needs of India’s affluent population over the years, Anand Rathi Wealth has built strong connections with its clients. The company strives to be a reliable partner, helping clients reach their financial goals with tailored solutions.

Digital Transformation Initiatives Bear Fruit

Anand Rathi Wealth has embraced digitalization to enhance efficiency, productivity, and transparency in its operations.

The company’s wealth management platform offers Relationship Managers a unified view of client portfolios, enabling them to provide more informed advice. Clients can access their portfolio from anywhere using the mobile app and web portal.

Additional initiatives encompass automated workflows, paperless customer onboarding, e-KYC, digital signature, and analytics-driven insights. Anand Rathi Wealth was honored with the Digital Transformation Award at the Transformance 2022 Summit.

Technology integration has greatly enhanced the experience for clients and relationship managers, while also streamlining costs. This is evident in the company’s operating profit, which experienced a remarkable 36% year-on-year increase in Q3 FY24.

Plans to Deepen Its Presence in These Cities

Currently operating across:

  1. Bengaluru
  2. Chandigarh
  3. Chennai
  4. Delhi
  5. Gurugram
  6. Hyderabad
  7. Kolkata
  8. Mumbai
  9. Noida
  10. Rajasthan
  11. Pune

Anand Rathi Wealth aims to further establish its presence in these cities and extend into tier 2 locations.

The company has set a goal to increase its current branch count of 20 to 30 within the next 2-3 years. There are also plans to increase the RM headcount to align with the expansion of branches.

Anand Rathi Wealth is actively exploring opportunities for growth through strategic acquisitions. The company’s robust financial position, deep industry knowledge, and seamless operational integration capabilities position it favorably to assess potential opportunities.

India’s Wealth Management Industry is at an Inflection Point

India’s wealth management industry is experiencing a significant turning point, as there is a growing population of ultra high net worth individuals (HNIs), a rapid increase in financial savings, and a strong demand for sophisticated solutions.

According to a report by BCG, personal financial assets in India are projected to experience a significant growth, nearly tripling from $3 trillion in 2020 to $8 trillion in 2030.

Anand Rathi Wealth, with its strong emphasis on personalized offerings and digital capabilities, is perfectly positioned to seize this opportunity.

With a commitment to providing clients with lasting value as a trusted wealth partner, Anand Rathi Wealth is well-positioned to maintain its growth momentum in the years ahead.

The Q3 results demonstrate the success of its client-centric approach, which prioritizes simplicity, transparency, and flexibility.

Share This Article
By Ajit Kushwaha Writer
Ajit Kushwaha is a stock market investor and business owner of a chips manufacturing company in Hazaribagh, Jharkhand. He holds a Bsc. from Vinobha Bhave University and leverages over 5 years of share market experience in managing investments and his snack food business.
Leave a comment