Anand Rathi Wealth Considers Launching AMC, Revokes Sale Of Subsidiary
The company is evaluating and considering some other businesses like an asset management company someday, says deputy CEO.
Anand Rathi Wealth Ltd. is 'evaluating and considering' launching an asset management company after revoking its earlier decision to sell its subsidiary, Freedom Wealth Solutions Pvt., according to Deputy Chief Executive Officer Feroze Azeez.
The unit was earlier categorised under 'assets classified as held for sale', according to a note in the annual report of the financial products distributor.
However, the company re-evaluated the decision and later revoked the sale of Freedom Wealth Solutions, Azeez told BQ Prime in an interview. "There are some other business opportunities that we have thought of that can be part of this subsidiary."
The company is evaluating and considering some other businesses, like an asset management company someday, Azeez said. There is no firm timeline yet, and the firm has yet to start conversations with the regulator.
Feroze Azeez, Deputy Chief Executive Officer, Anand Rathi Wealth Ltd. (Source: Company source)
Anand Rathi Wealth Q1 FY24 Highlights (YoY)
Total revenue increased 33.6% to Rs 178.4 crore.
PAT margin stands at 29.8%.
Assets under management increased 31.7% to Rs 43,413 crore.
Profit after tax rose 34% to Rs 53.2 crore.
Shares of Anand Rathi surged 8.16% to Rs 1,009.15 apiece as of 1:43 p.m., compared to a 0.71% rise in the benchmark NSE Nifty 50. The stock jumped 17.11% intraday to hit an all-time high of Rs 1,092.65.
The total traded volume so far in the day stood at 65.4 times its 30-day average. The relative strength index was at 86.14, implying that the stock is overbought.
The two analysts tracking the company maintain a 'buy' on the stock, according to Bloomberg data. The average 12-month consensus price target implies an upside of 5.9%.
