Multibagger stock: Anand Rathi Wealth shares rally 6% post Q2 results

Shares of Anand Rathi Wealth shares rallied as much as 6 per cent during the trading session on Friday after the company announced a decent of performance in the September 2024 quarter. The company announced its Q2FY25 earnings post market hours on Thursday.

Anand Rathi Wealth reported a 32.4 per cent year-on-year (YoY) increase in net profit at Rs 76.1 crore for the second quarter ended on September 30, 2024. The financial solutions provider had reported a net profit of Rs 57.5 crore in the year ago period.

The leading non-bank wealth solutions company's revenue from operations rose 32.8 per cent YoY to Rs 242.5 crore against Rs 182.6 crore in the year-ago period. Its Ebitda was up 34.5 per cent to Rs 104.2 crore in the second quarter of the current fiscal while Ebitda margins improved to 43 per cent in the reporting quarter.

Following the announcement of Q2 earnings, shares of Anand Rathi Wealth zoomed 5.5 per cent to Rs 4,280 on Friday with its total market capitalization close to 17,750 crore. The scrip had settled at Rs 4,055.70 in the previous trading session on Thursday.

Anand Rathi Wealth made its Dalal Street debut in December 2021, when the financial solutions firm raised a total of Rs 660 crore via IPO by selling its shares for Rs 550 apiece. The stock has zoomed 680 per cent from its issue price so far. It has jumped about 150 per cent from its 52-week low at Rs 1,737.95 hit in October 2023.

Anand Rathi Wealth reported a 70 per cent YoY rise in mutual fund distribution revenue to Rs 195 crore, with net inflows up by 128 per cent to Rs 5,700 crore. Equity mutual fund net inflows saw a 64 per cent increase to Rs 3,116 crore, while the share of equity mutual funds in assets under management (AUM) grew to 55 per cent as of September 2024.

Anand Rathi Wealth recorded an annualised return on equity (ROE) of 44 per cent. The board of directors declared an interim dividend of Rs 7 per equity share, representing 140 per cent of the face value of Rs 5.