Anand Rathi Wealth Limited

Financial Services — Asset Management · NSE

₹2,159.70+₹17.10 (+0.80%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Anand Rathi Wealth Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Anand Rathi Wealth Limited engages in the distribution and sale of financial products in India. The company offers wealth solutions.

IndustryAsset Management

SectorFinancial Services

Employees1,256

Annual revenue₹1,149 Cr

How does it make money?

Turns over ₹1,149 Cr a year. Of every ₹100 of sales, about ₹34 reaches shareholders as profit, with ₹45 left at the operating level before interest, tax and depreciation. Each of its 1,256 employees supports ₹91.5 lakh of revenue a year, the signature of a people-led business.

EBITDA margin45.5%

Net margin34.5%

Revenue / employee₹91.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC BANK LTDP/E 15.9x · ROE 13.8%

ICICI BANK LTD.P/E 18.1x · ROE 16.5%

STATE BANK OF INDIAP/E 10.3x · ROE 15.2%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROCE50.0%

ROE43.0%

Peer median ROE16.5%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 22.2% and earnings to grow about 19.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+22.2%

Est. earnings growth+19.2%

Analysts2

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +109% while net margin moved +12% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+109%

Margin effect+12%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 79.6x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 79.9x
✗ P/B of 27.83x is a steep premium to book

Quality vs. Valuation

Company Quality

84/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

79.6x

3Y Median

79.9x

40 monthly readings · mean 81.0x · range 35.4x–114.7x

Sector Median

17.0x

median of 4 sector peers

🟡Currently trading close to its 3y median of 79.9x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 368% above the peer median of 17.0x.

vs. its own history

Fair

79.9x median over 40 months · -0%

vs. sector peers

Expensive

17.0x median of 4 peers · +368%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

79.6x

P/B

27.83x

EV/EBITDA

68.4x

PEG

2.41

Dividend Yield

0.35%

What's Good / What's Bad

🟢 What's Going Well3

Return on equity is rising
ROE has improved from 36.0% to 39.7%.
Return on capital is rising
ROCE has improved from 45.9% to 50.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 27785% against revenue growth of 109% — customers are taking longer to pay.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 368% above the peer median. That premium needs a reason that persists, or it closes.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 21% a year✓ 27.9% CAGR
Latest reported year was 16.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 43%✓ 45.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 41%✓ 43.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 79.9x✓ 79.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 2 neutral · 4 weak

Market Cap

₹35,860 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

79.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

27.83x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹27.14

Profitable

Profitable on a per-share basis

ROE

43.0%

Strong

Strong capital efficiency

ROCE

50.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.34x

High

High leverage

Revenue Growth (YoY)

16.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-11.9%

Falling

Profits are shrinking

Dividend Yield

0.35%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹426 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹2,159.7

P/E (Forward)

64.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

28.1%

Good

Assets are working hard

Operating Margin

33.7%

Good

Healthy core-business profitability

Net Margin

31.3%

Good

Strong bottom-line conversion

Current Ratio

4.96

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

88%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

2137.6 / 2165.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹549 Cr	₹724 Cr	₹939 Cr	₹1,149 Cr	+27.9%
EBITDA	₹247 Cr	₹325 Cr	₹428 Cr	₹522 Cr	+28.4%
EBITDA Margin	45.0%	44.8%	45.6%	45.5%	—
PAT (Net Profit)	₹168 Cr	₹225 Cr	₹300 Cr	₹396 Cr	+33.0%
EPS	₹10.07	₹13.51	₹18.09	₹23.59	+32.8%
ROE	36.0%	34.7%	44.5%	39.7%	—
ROCE	45.9%	44.4%	54.4%	50.0%	—
Total Debt	₹37 Cr	₹52 Cr	₹79 Cr	₹83 Cr	+31.5%
Free Cash Flow	₹67 Cr	₹273 Cr	₹203 Cr	₹268 Cr	+58.7%

🟢 Revenue has grown at 27.9% a year over 3 years.

🟢 EBITDA has grown at 28.4% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 45.5% over 3 years.

🟢 PAT (Net Profit) has grown at 33.0% a year over 3 years.

🟢 EPS has grown at 32.8% a year over 3 years.

🟢 ROE has risen from 36.0% to 39.7% over 3 years (+3.7 pts).

🟢 ROCE has risen from 45.9% to 50.0% over 3 years (+4.2 pts).

🔴 Total Debt has grown at 31.5% a year over 3 years.

🟢 Free Cash Flow has grown at 58.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,329 Cr

Total Liabilities

₹317 Cr

Total Debt

₹83 Cr

Cash & Equivalents

₹241 Cr

Operating Cash Flow

₹281 Cr

Capex

-₹13 Cr

Shareholding (proxy)

Institutional Holding

31.1%

Insider Holding

27.0%

Corporate Actions

Dividend Rate

₹7.5

Ex-Dividend Date

15 Oct 2026

Analyst Consensus

Recommendations

0 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹1,580

-26.8% vs CMP

Target Range

₹1,530 – ₹1,630

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

1 positive2 mixed2 negative1 general

Anand Rathi Wealth Ltd. Futures Price: Live NSE/BSE Futures Chart & Updates

HDFC Sky, 16 Oct

Anand Rathi Wealth shares soar 330% in 3 years, but fall 5% today: What’s behind the slump? Can they fall more? Decoded

Livemint, 09 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Anand Rathi Wealth promoter shifts pledge of 88.46 lakh shares to Yes Bank

scanx.trade, 16 OctOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Earnings call transcript: Anand Rathi Wealth Q2 2026 revenue misses forecast

Investing.com India, 12 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Anand Rathi Wealth Share Price Falls Nearly 5% Ahead of Q2 Results

NDTV Profit, 09 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Dividend, Bonus and Split: 3 Record Dates Explained

Kalkine India, 14 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong17.5/20

🟢Financial HealthStrong17/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong13.5/15

🔴ValuationDemanding5.3/15

🟢RiskLow7.2/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

This thesis breaks if

✓Revenue growth stays above 21% a year27.9% CAGR
✓EBITDA margin holds above 43%45.5%
✓Return on equity stays above 41%43.0%
✓Valuation vs its own median of 79.9x79.6x today