Shares of Anand Rathi Wealth hit a 52-week high of 732.45 rupees as the stock soared 8% on BSE in intraday trading on Friday after the company reported strong growth of 41 % year-on-year (YoY) in net profit consolidation at Rs 43 crore, thanks to healthy revenue growth. Total revenue increased by 33% year-on-year to Rs 138 crore in the quarter.
The stock of the non-banking wealth solutions company surpassed its previous high of Rs 712, which it touched on April 19, 2022. The company made its public debut on December 14, 2021. It had raised funds by issuing shares at the price of Rs 550 per share in initial public offering (IPO). As of 10:05 a.m., the stock was trading up 6% at Rs 721, against a 1.8% rise in the S&P BSE Sensex.
Anand Rathi Wealth recorded strong growth in assets under management (AUM) of 16% year-on-year to Rs 35,842 crore. The board declared an interim dividend of 100% or Rs 5 per share.
Management said the company delivered strong performance across all verticals, coupled with an overall improvement in operational efficiency. Despite the volatile market scenario, the company recorded strong net flows of Rs 2,474 crore during S1FY23, more than double the net flows of Rs 1,202 crore in the same period last year.
Anand Rathi Wealth has grown into a wide range of financial product consortium in India with presence in sections such as Non-Banking Financial Services, Wealth Management, Equity Brokerage, Investment Banking and Insurance Brokerage. The Anand Rathi Group has expanded its geographical reach and now has a presence in India and the Middle East, which are served by representative business associates and office building companies.
In the future, the wealth management demands of the potential client would be defined by increased knowledge, a shift in attitude towards money growth rather than wealth preservation, and technological improvements. Thus, the adoption of the technology should play a major role in determining the beneficiaries. Players who successfully meet increased demand and have cost-effective methods to serve that customer base in relevant ways would have a definite long-term advantage, the company said in its FY22 annual report.