Anand Rathi stock reflects vigour

Jittery equity

- Manish Joshi

There are investors who want to bet on asset management companies (AMCs) that benefit from the growing culture of equity mutual fund (MF) investments in India. However, it is difficult to pick the winners among the AMCs. The other option for investors is to consider proxy plays such as Anand Rathi Wealth Ltd (ARW). ARW is the only pure-play listed wealth management company in India, with half of its assets under management (AUM) in equity mutual funds. Recall that 360 One WAM Ltd also diversified into equity broking recently by acquiring B&K Securities.

ARW managed to grow its revenue by 30% year-on-year (y-o-y) to ₹939 crore during FY25 and net profit by 33% to ₹301 crore. The management has guided for the net profit growth rate to come down to 25% for FY26. While a higher base could be a reason for the slower earnings growth guidance, slightly sluggish quarter-on-quarter (q-o-q) performance in the March quarter (Q4FY25) may also have driven the decision.