Anand Rathi Wealth — Motilal Oswal Maintains 'Neutral' Stance On The Stock After Q3 Results; Here's Why

Anand Rathi Wealth is one of the few companies in the listed universe space that has consistently outperformed its stated guidance. For FY23/FY24, it beat its revenue guidance by 9%/14% and PAT guidance by 8%/10%..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Anand Rathi Wealth Ltd. reported operating revenue at Rs 2.4 billion in Q3 FY25, up 30% YoY (6% miss). The overall revenue growth was driven by a 52% YoY increase in the MF business revenue, which reached Rs 1.1 billion. For 9MFY25, the overall revenue from operations grew 33% YoY to Rs 7.2 billion. Opex grew 27% YoY to ~Rs 1.3 billion, but declined 6% sequentially due to 8% decline in employee costs to Rs 1 billion. As a result, the cost-to-income ratio improved 141 bp YoY and 224 bp QoQ, reaching 54.8% in Q3 FY25 (versus 56.3% in Q3 FY24 and our estimate of 56.6%).PAT for the quarter stood at Rs 773 million, reflecting a 33% YoY growth (in line with our estimates). For 9MFY25, it grew 34% YoY to Rs 2.3 billion. PAT margins for Q3 FY25 expanded 79 bp YoY to 32.6%. (Our estimate at 31.6%). We expect Anand Rathi Wealth to report an AUM/revenue/PAT CAGR of 26%/26%/28% during FY24-27. With a robust cash generation (Rs 8.9 billion of operating cash flow during FY24-27E), an RoE of 40%+, and a healthy balance sheet, the company’s valuation is well-priced at 42x FY26E P/E. We have cut our FY25/26/27 EPS estimates by 3%/7%/6% to factor in slower AUM growth. We maintain a Neutral rating on the stock with a one-year target price of Rs 4,200 (premised on 40x Sep’26E P/E)..Click on the attachment to read the full report:.Top Stock Pick For 2025 - 'Buy' SBI For An Upside Of 27% Says Motilal Oswal; Here's Why.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Anand Rathi Wealth — Motilal Oswal Maintains 'Neutral' Stance On The Stock After Q3 Results; Here's Why

With a robust cash generation, RoE of 40%+, and a healthy balance sheet, the company’s valuation is well-priced at 42 times FY26E P/E, says Motilal Oswal

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Anand Rathi Wealth — Motilal Oswal Maintains 'Neutral' Stance On The Stock After Q3 Results; Here's Why

With a robust cash generation, RoE of 40%+, and a healthy balance sheet, the company’s valuation is well-priced at 42 times FY26E P/E, says Motilal Oswal

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