Anand Rathi Wealth Shares Surge on Bonus Issue Announcement
Shares of Anand Rathi Wealth saw a strong rally on Thursday, rising by 7.5% to an intraday high of Rs 4,133.35 on the BSE, after the company announced that its board will consider a bonus issue in its upcoming meeting on January 13, 2025. The stock continued to see buying interest, with shares trading 2.72% higher at Rs 3,946 around 11:51 AM. In comparison, the BSE Sensex was down by 0.48% at 77,770.99.
At the current price, the market capitalisation of Anand Rathi Wealth stood at Rs 16,379.97 crore. The company’s stock has seen significant fluctuations over the past 52 weeks, with a high of Rs 4,640.55 and a low of Rs 2,575 per share.
The board meeting, scheduled for January 13, 2025, is expected to address several matters, including the proposal for issuing bonus shares to the company’s shareholders. This announcement has generated positive sentiment among investors, contributing to the stock’s price movement.
Strong Q2 FY25 Performance
Anand Rathi Wealth reported solid Q2 FY25 results, with a 32% year-on-year (YoY) increase in consolidated net profit to Rs 76.3 crore (up from Rs 57.7 crore in Q2FY24). The company’s revenue from operations also grew by 32% YoY, reaching Rs 249.6 crore, up from Rs 189.1 crore in the same period last year.
The company’s assets under management (AUM) surged by 57% YoY, reaching Rs 75,084 crore compared to Rs 47,957 crore in Q2FY24. Its earnings per share (EPS) also saw a 32% increase, rising to Rs 18.3 from Rs 13.8 in the same quarter last year.
A standout segment for the company was its Mutual Fund (MF) distribution business, which saw a 70% YoY increase in revenue, reaching Rs 195 crore. The company reported net inflows of Rs 5,700 crore, which represented a 128% YoY growth.
Interim Dividend Announcement
In addition to the bonus share proposal, Anand Rathi Wealth’s Board of Directors declared an interim dividend of Rs 7 per equity share (140% of face value) for the financial year 2025. This dividend decision further boosted investor sentiment.
Stock Performance
In the past year, Anand Rathi Wealth shares have delivered impressive returns, rising by 38%, significantly outperforming the Sensex, which rose by 9.5% over the same period.
Company Overview
Anand Rathi Wealth is a leading Indian financial services firm, providing a wide range of wealth management, investment banking, and retail broking services. It has established itself as one of the prominent financial institutions in India, offering comprehensive financial solutions to individual, corporate, and institutional clients.
The stock’s recent strong performance and the potential for further growth through initiatives like the bonus share issue have garnered attention from investors.
