Anand Rathi Wealth: Q2 FY27 Preview One-Pager (Oct 13, 2026)
Editor’s note: This is a preview built on estimates, not reported results. The last close of ₹2,100 matches NSE data for Oct 13. The draft’s market-cap estimate and peer-comparison table (which included a company that does not exist) were removed, as was the 5/5 high-conviction label. The draft’s 45-50x P/E conflicted with its own FY27 EPS estimate of ₹104 (about 20x), so P/E-based valuation lines were taken out. Target prices are scenario assumptions, not forecasts we endorse.
Stock: ANANDRATHI (NSE) | Sector: Wealth Management | Announcement: Oct 13, 2026 | Listing: December 2021
1. Company Snapshot
Anand Rathi Wealth is an independent wealth manager focused on high-net-worth and ultra-high-net-worth clients. Revenue mix (approx.): wealth advisory 60%, insurance distribution 20%, portfolio management 10%, mutual fund distribution 10%.
| Metric | Value | Note |
|---|---|---|
| Last close (Oct 13) | ₹2,100.00 | +0.62% on the day |
| 52-week range | ₹1,650-₹2,450 | Recovery from lows |
| Volume | 244,085 shares | Moderate |
| Estimated P/E (FY27) | ~20x | ₹2,100 / FY27E EPS ₹104 |
2. Financial Health
| Period | AUM | Revenue Growth | Net Margin |
|---|---|---|---|
| Q2 FY26 | ₹1,85,000 Cr | +28% | 22-24% |
| Q2 FY27E | ₹2,60,000-2,80,000 Cr | +35-40% | 24-26% |
Q2 FY27 Estimates (Jul-Sep 2026)
| Metric | Expected | Q1 FY27 | YoY |
|---|---|---|---|
| AUM | ₹2,70,000 Cr | ₹2,55,000 Cr | +38-40% |
| Revenue | ₹1,090 Cr (est) | ₹1,020 Cr | +32-35% |
| Net Profit | ₹270 Cr (est) | ₹245 Cr | +36-38% |
| Net Margin | 24.8% (est) | 24.0% | Slight expansion |
| EPS | ₹27.50 (est) | ₹25.00 | +35-38% |
Balance sheet: 35,000+ HNI clients; 92-95% recurring fee revenue; cost/income 60-62%; net worth ₹3,200+ Cr; debt/equity below 0.5x; cash ₹400-500 Cr.
3. Management & Guidance (expected)
- FY27 AUM: ₹2,90,000-3,00,000 Cr (+35-40%); FY29 target ₹5,00,000+ Cr
- FY27 revenue: ₹4,100-4,200 Cr (+32-35%); net profit: ₹1,000-1,050 Cr (+32-35%)
- Net margin: 24-25%; profit CAGR FY27-29 of 35-40%; ROE target 32-35%
- Distribution: 150+ branches by FY28 (from 120+); 500+ relationship managers to be hired in FY27
- Mix shift: toward 70% advisory by FY28; dividend payout of 30-40% expected
4. Business Initiatives
- Digital wealth platform for the ₹1-10 Cr mass-affluent segment: ₹200-250 Cr revenue by FY28; 2-3 years to profitability
- Insurance channel: premium income from ₹600-700 Cr to ₹1,000+ Cr by FY28
- Talent: 2,800+ employees to 3,300+ by end-FY27
- International: Singapore, UK and UAE operations for NRI clients; 10% of AUM by FY28
5. Forward Forecasts
| FY27E | Estimate | Growth |
|---|---|---|
| AUM | ₹2,95,000 Cr | +37% |
| Revenue | ₹4,150 Cr | +34% |
| Net Profit | ₹1,020 Cr | +35% |
| EPS | ₹104.00 | +35% |
FY28: AUM ₹4,00,000+ Cr; revenue ₹5,500+ Cr; net profit ₹1,420-1,450 Cr. Net margin 24.6% (FY27E) rising to 26.0% (FY29E); cost/income falling from 60.8% to 59.5%.
6. Growth Narrative
The draft argues that India’s HNI population (growing 18-20% a year) and a total wealth market of ₹50+ lakh Cr leave room for a founder-led firm with a sticky client base (annual churn under 3%) to roughly double its market share. Profit growth is expected to match or exceed AUM growth on operating leverage, a richer advisory mix and scale benefits.
Strengths: recurring revenue, sticky HNI clients, diversified streams, high-margin advisory (40%+ net margin). Concerns: top 10% of clients are 25-28% of AUM, equity-market sensitivity of fees, execution risk on digital and international expansion, regulatory risk.
7. Scenarios (as drafted)
| Scenario | Assumptions | Draft price scenario |
|---|---|---|
| Bull | Digital and international traction, AUM inflows above guidance, M&A | ₹3,150-3,200 (18-24 months) |
| Base | AUM growth 35-37%, digital AUM ₹20,000 Cr by FY29 | ₹2,770-2,800 (18 months) |
| Bear (15% probability) | Digital flop, 20-30% market correction, client attrition | ₹1,365-1,400 |
The draft’s DCF fair value is ₹2,650-2,750 per share (vs last close ₹2,100).
Rating in the draft: BUY (18-month base-case target ₹2,770). Suitable for growth investors with an 18-24 month horizon; not for risk-averse investors given execution and market-sensitivity risks.
| Metric to monitor | Target | Red flag |
|---|---|---|
| AUM growth | 35-38% YoY | <25% |
| Net margin | 24-25% | <23% |
| Advisory fee share | 60%+ of revenue | <55% |
| HNI client growth | 10-12% | <8% |
| Digital AUM | ₹20,000+ Cr by FY28 | Minimal traction |
| Cost/income | 60-61% | >62% |
Negative catalysts: equity market correction of 25%+, digital platform failure, senior adviser attrition, regulatory action, client concentration, economic slowdown.
Educational and informational purposes only, not investment advice. Consult a SEBI-registered advisor before investing.
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For educational purposes only, not investment advice.
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