Anand Rathi Share & Stock Brokers
Stock Snapshot
Price Performance
Vista Outlook
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Anand Rathi Share and Stock Brokers Limited is poised for growth, driven by management's optimistic outlook on the broking and Margin Trade Facility (MTF) segments. The company has reported a significant increase in active clients, aligning with its strategy to expand Assets Under Custody (AUC). This focus on MTF as a core growth engine, coupled with a projected revenue growth target of 15-20% year-on-year, supports Vista's forecast of accelerating revenue and improving margins. However, the company faces challenges from economic volatility and heightened competition, which could impact profitability and market share. The capital markets sector is experiencing structural tailwinds, including increased financialization of household savings and a favorable regulatory environment, which enhances investor confidence. Despite these positive indicators, risks such as governance concerns related to managerial remuneration and potential geopolitical impacts remain. Over the next 12-24 months, key opportunities include expanding non-broking revenues and enhancing technology investments, while watchpoints include managing competition and economic uncertainties
Why We Like This Stock
- Significant growth in active clients and a focus on the Margin Trade Facility (MTF) as a core growth engine
- Projected revenue growth of 15-20% year-on-year, supported by diversification into non-broking segments
- Favorable regulatory environment and increasing financialization of household savings enhancing market potential
Things To Watch Out For
- Risks related to economic volatility and increased competition could impact profitability and market share
- Governance concerns surrounding proposed high managerial remuneration may affect investor sentiment
- Geopolitical risks and a fragile global economic environment could dampen market confidence
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 681 | 844 | 931 | 1,064 | 1,263 |
| Profit Before Tax (Cr.) | 117 | 141 | 174 | 227 | 261 |
| PBT Margin | 17.2% | 16.7% | 1868.4% | 21.3% | 20.6% |
| Net Profit (Cr.) | 88 | 104 | 132 | 172 | 198 |
| Earnings Per Share | 13.9 | 16.6 | 20.9 | 27.3 | 31.4 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Anand Rathi Share and Stock Brokers Limited provides stock brokerage services in India and internationally. The company offers equities, derivatives, alternative investment funds, IPOs, mutual funds, portfolio management services, investment basket, margin trading facility, NRI investing, commodities, currencies, fixed income, and insurance products. It also provides TradeMobi, an online app for trading and account related services; TradeXpress, a web-based platform to execute trades and access real-time market data; AR Invest; and Algozy for algorithmic trading strategies. The company was formerly known as Navratan Capital and Securities Limited and changed its name to Anand Rathi Share and Stock Brokers Limited in January 2008. Anand Rathi Share and Stock Brokers Limited was incorporated in 1991 and is based in Mumbai, India. Anand Rathi Share and Stock Brokers Limited operates as a subsidiary of Anand Rathi Financial Services Limited.