Anand Rathi Wealth: 34% PAT growth & 35% revenue growth in 9M-24 at a PE of 56
Strong performance in the 3 quarters of FY24 already in the price. Outlook for FY25 will decide the trajectory in the stock. While ANANDRATHI is executing well the stock price may have run ahead
1. Leading Private Wealth Solutions company
anandrathiwealth.in | NSE: ANANDRATHI
3rd largest non-bank sponsored mutual fund distributor in India
2. FY18-23: PAT CAGR of 30% & Revenue CAGR of 20%
3. Strong H1-24: PAT up 34% & Revenue up 35%
4. Strong Q3-24: PAT up 34% & Revenue up 34%
5. Strong 9M-24: PAT up 34% & Revenue up 35%
6. Strong and consistent return ratios
• ROE (Annualized) – 42% for 9MFY24
7. Outlook: Outperforming the guidance
Growth outlook for FY-24 vs FY23
Revenue = 29% (guidance) vs 35% (9M-24)
PAT = 30% (guidance) vs 34% (9M-24)
EPS = 30% (guidance) vs 34% (9M-24)
8. PAT growth of 34% & Revenue growth of 35% 9M-24 for a PE of 56
9. So Wait and Watch
If I hold the stock then one may continue holding on to ANANDRATHI
Coverage of ANANDRATHI was initiated after Q2-24 results. The investment thesis has not changed after a strong Q3-24. The management is on track to beating its guidance for FY-24 based on the performance in 9M-24. .
ANANDRATHI has delivered a strong 9M-24 where all the 3 quarters were strong.
With FY24 mostly done the next trigger in ANANDRATHI would come from the guidance for FY25 which would come in after Q4-24.
11. Or, join the ride
If I am looking to enter ANANDRATHI then
ANANDRATHI has delivered a strong 9M-24 with PAT up 34% & revenue up 35% at PE of 56 which makes the valuations quite rich in the short term.
The strong performance in all the 3 quarters of FY24 is already discounted in the price. Outlook for FY25 will now decide the trajectory in the stock. While the company is executing well the stock price may have run ahead of its performance in the short term.
If one feels that the growth momentum guided for FY24 will continue into FY25, then the valuations could start looking attractive.
At a PE of 56 the margin of safety is limited in ANANDRATHI, one not so strong quarter and the stock may start looking quite expensive.
Previous coverage on ANANDRATHI
Don’t like what you are reading? Let us know at hi@moneymuscle.in
Disclaimer
It is an analysis of the company data and not a stock recommendation
Perspectives may change based on evolving understanding of the company.
Focus is on identifying potential stock ideas for long-term market-beating returns.
Content does not constitute explicit stock recommendations.
Investors should conduct thorough stock research and seek professional advice.
Information is for educational purposes and not financial advice or a call to action.