Anand Rathi Share and Stock Brokers Limited

Financial Services — Financial Conglomerates · NSE

₹502.80−₹3.00 (−0.59%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Anand Rathi Share and Stock Brokers 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 Share and Stock Brokers Limited provides stock brokerage services in India and internationally.

IndustryFinancial Conglomerates

SectorFinancial Services

Employees2,214

Annual revenue₹740 Cr

How does it make money?

Turns over ₹740 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹50 left at the operating level before interest, tax and depreciation. Each of its 2,214 employees supports ₹33.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹33.4 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.

Compared side by side in Peers ↓

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.

Peer median ROE16.5%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +75% while net margin moved +96% 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+75%

Margin effect+96%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

80/ 100

Excellent

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

Valuation

71/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

20.1x

1.3Y Median

30.8x

15 monthly readings · mean 29.9x · range 21.4x–42.0x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 1.3y median of 30.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 18% above the peer median of 17.0x.

vs. its own history

Cheap

30.8x median over 15 months · -35%

vs. sector peers

Fair

17.0x median of 4 peers · +18%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.6x

PEG

0.40

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 24.9% to 50.1% over 3 years.
Return on capital is rising
ROCE has improved from 22.6% to 24.7%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 14.2% to 9.6% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 2.0x — little room if earnings dip.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.1%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 24.9% to 50.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 35% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
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?

Returns on shareholder capital are falling
ROE has dropped from 14.2% to 9.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

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

1Revenue growth stays above 15% a year✓ 20.4% CAGR
Latest reported year was 32.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 48%✓ 50.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 9%✓ 10.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 30.8x✓ 20.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

9 / 11 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 7 neutral · 0 weak

Market Cap

₹3,171 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.1x

Fair

Fairly valued against the generic band

P/B Ratio

2.29x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹24.97

Profitable

Profitable on a per-share basis

ROE

10.7%

Moderate

Moderate capital efficiency

ROCE

24.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.04x

Moderate

Moderate leverage

Revenue Growth (YoY)

32.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

7.8%

Modest

Slow profit growth

Dividend Yield

0.99%

Modest

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

Free Cash Flow

₹705 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

3.0%

Weak

Assets generate little profit

Operating Margin

23.8%

Good

Healthy core-business profitability

Net Margin

16.7%

Good

Strong bottom-line conversion

Current Ratio

2.68

Comfortable

Healthy short-term liquidity

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

519.4 / 512.5

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹424 Cr	₹590 Cr	₹703 Cr	₹740 Cr	+20.4%
EBITDA	₹105 Cr	₹224 Cr	₹305 Cr	₹371 Cr	+52.1%
EBITDA Margin	24.9%	38.0%	43.3%	50.1%	—
PAT (Net Profit)	₹38 Cr	₹77 Cr	₹104 Cr	₹129 Cr	+50.7%
EPS	₹6.02	₹12.32	₹16.52	₹23.4	+57.3%
ROE	14.2%	19.7%	20.6%	9.6%	—
ROCE	22.6%	30.5%	50.6%	24.7%	—
Total Debt	₹423 Cr	₹879 Cr	₹906 Cr	₹831 Cr	+25.2%
Free Cash Flow	-₹6 Cr	₹149 Cr	₹649 Cr	₹705 Cr	—

🟢 Revenue has grown at 20.4% a year over 3 years.

🟢 EBITDA has grown at 52.1% a year over 3 years.

🟢 EBITDA Margin has risen from 24.9% to 50.1% over 3 years (+25.3 pts).

🟢 PAT (Net Profit) has grown at 50.7% a year over 3 years.

🟢 EPS has grown at 57.3% a year over 3 years.

🔴 ROE has fallen from 14.2% to 9.6% over 3 years (-4.6 pts).

🟢 ROCE has risen from 22.6% to 24.7% over 3 years (+2.0 pts).

🔴 Total Debt has grown at 25.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹6 Cr to ₹705 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,099 Cr

Total Liabilities

₹5,751 Cr

Cash & Equivalents

₹79 Cr

Operating Cash Flow

₹725 Cr

Capex

-₹20 Cr

Shareholding (proxy)

Institutional Holding

72.0%

Insider Holding

0.1%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

23 Jun 2026

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

3 mixed3 general

Anand Rathi Share and Stock Brokers (ARSSBL.NS) Holds Firm Near ₹508 as Momentum Stalls - Factor Momentum

https://www.siam.in/, 16 Oct

Anand Rathi Share and Stock Brokers (NSEI:ARSSBL) - Stock Analysis

Simply Wall Street, 14 Oct

Anand Rathi Share and Stock Brokers shares drop 6% after Q2 results. What’s spooking investors?

The Economic Times, 14 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.

After a 56% jump in 6 months, Anand Rathi sees 30% further upside in this realty stock - Rationale, target price

TradingView, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Anand Rathi Share Price and Latest Stock Analysis

Kalkine India, 14 Oct

Anand Rathi Share and Stock Brokers Ltd (NSE:ARSSBL) (Q2 2027) Earnings Call Highlights: Profit ... By GuruFocus

Investing.com Canada, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

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.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Valuation

MiddlingProfitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑