Heavy buying: This small-cap stock rallies 7 per cent after a strong Q1FY24 performance!

The company has an impressive ROCE of 47.9 per cent, indicating its efficient utilization of capital and strong profitability.

In the morning trade the bulls of D-street were seen in action as Sensex and Nifty both experienced gains of 0.57 percent, indicating a positive trend in the stock market. The Sensex concluded the trading session with a higher close of 0.25 percent, while the Nifty recorded a slightly lower increase, closing higher by 0.15 percent.

On July 13, 2023, despite modest market sentiments the shares of Anand Rathi Wealth Limited dazzled with an impressive surge of 7.41 per cent, the stock hits new 52-week high of Rs 1089 per share on BSE. Additionally, the scrip witnessed a massive spurt in volume by more than 22.91 times. This indicates heavy buying among investors. The company's current market capitalization is Rs 4,181.12 crore.

On July 12, 2023, Anand Rathi Wealth Limited reported their consolidated Q1FY24 financial performance, details as follows:

The company’s total revenue surged 32.83 per cent on YoY basis from last year’s same quarter to Rs 178 crore.The profit before tax (PBT) stood at Rs 71 crore, witnessing a growth of 34 per cent from Q1FY23.

In a similar fashion, the net profit of the company soared 32.5 per cent from corresponding quarter last year at Rs 53 crore. 

Anand Rathi Wealth Ltd has witnessed a 32 per cent YoY growth in its Assets Under Management (AUM), amounting to Rs 43,413 crore.

These figures reflect the company's strong financial performance and steady growth trajectory.

Company snapshot:

Anand Rathi Wealth Limited was incorporated on March 22, 1995. It is a leading non-bank wealth solutions firm in India. As an AMFI registered mutual fund distributor, it offers a wide range of products including wealth solutions, financial product distribution, and technology solutions to its clients. The company is ranked among the top three non-bank mutual fund distributors in the country.

Over the past five years, the company has achieved a commendable profit growth of 27.3 per cent compounded annual growth rate (CAGR). Additionally, it has established a strong track record of return on equity (ROE) with a three-year average ROE of 33.0 per cent. Also, the company has maintained a commendable Return on Capital Employed (ROCE) of 47.9 per cent, indicating its efficient utilization of capital and strong profitability.

Furthermore, the company has consistently maintained a strong dividend payout of 23.8 per cent. This consistent dividend policy showcases the company's stable financial performance and its focus on rewarding its shareholders with regular income distributions.

The stock has witnessed significant buying activity as it has surged more than 54 per cent in the last one year.

Investors should keep close eye on this trending stock.