Anand Rathi IPO opens tomorrow!
A simple thread explaining everything about their business and the IPO!
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Let's go ๐๐งต
A simple thread explaining everything about their business and the IPO!
Do "Retweet" and help us share this thread with more investors :)
Let's go ๐๐งต
1/n
About the Company -
- Non-bank wealth solutions firms in India
- Mutual fund distributor
- Offers financial instruments to clients such as market-linked debentures, etc
About the Company -
- Non-bank wealth solutions firms in India
- Mutual fund distributor
- Offers financial instruments to clients such as market-linked debentures, etc
2/n
AUM Definition -
- Comprises MFs (Mutual funds) + other financial products/securities held by clients in their own Demat a/c
- Does not include Demat holdings of the clients in the AUM unless the client has used Anand Rathi services to buy those products
AUM Definition -
- Comprises MFs (Mutual funds) + other financial products/securities held by clients in their own Demat a/c
- Does not include Demat holdings of the clients in the AUM unless the client has used Anand Rathi services to buy those products
3/n
AUM breakup -
- Latest AUM - Rs 30209 Cr
- Majority of AUM from the Mutual fund side
- PWM = Private Wealth Management
- DWM = Digital Wealth Management
AUM breakup -
- Latest AUM - Rs 30209 Cr
- Majority of AUM from the Mutual fund side
- PWM = Private Wealth Management
- DWM = Digital Wealth Management
4/n
Business Model -
- They earn distribution commission income from AMCs for mutual fund distribution business
- They also earn from the purchase and sale of financial products (MLDs, etc) to their clients.
Business Model -
- They earn distribution commission income from AMCs for mutual fund distribution business
- They also earn from the purchase and sale of financial products (MLDs, etc) to their clients.
5/n
Risks -
- High Competition from various outfits (Img 1)
- Certain minority shareholders of ARDWPL, one of their Subsidiaries, have filed a petition against them for transfer of share
- 9 Cr penalty by NSE on Anand Rathi for non-genuine trades in the F&O segment
Risks -
- High Competition from various outfits (Img 1)
- Certain minority shareholders of ARDWPL, one of their Subsidiaries, have filed a petition against them for transfer of share
- 9 Cr penalty by NSE on Anand Rathi for non-genuine trades in the F&O segment
6/n
Financials -
- FY19 to FY21 nothing worth talking about, topline was flat with net profits reducing
- Comfortable Debt to Equity position
- 5MFY22 has already beaten FY21 numbers, if we annualize 5M numbers, then FY22 will be a good year
Financials -
- FY19 to FY21 nothing worth talking about, topline was flat with net profits reducing
- Comfortable Debt to Equity position
- 5MFY22 has already beaten FY21 numbers, if we annualize 5M numbers, then FY22 will be a good year
7/n
About the IPO Issue -
- Total Market Cap of Rs 2255 cr post issue
- Complete Offer for Sale of 660 Cr
Shareholding -
About the IPO Issue -
- Total Market Cap of Rs 2255 cr post issue
- Complete Offer for Sale of 660 Cr
Shareholding -
8/n
Valuation -
- Rs 550 is the Upper Price Band
- Rs 10.85 FY21 EPS, FY21 P/E โ 50.7x
- Rs 12.25 5M FY22 EPS, annualized let's assume Rs 25 EPS, So FY22A P/E- 22x
- Peer Comparison is also shown.
Valuation -
- Rs 550 is the Upper Price Band
- Rs 10.85 FY21 EPS, FY21 P/E โ 50.7x
- Rs 12.25 5M FY22 EPS, annualized let's assume Rs 25 EPS, So FY22A P/E- 22x
- Peer Comparison is also shown.
9/n
Conclusion -
We have no view of the company.
Industry -
- Number of millionaires in India is set to grow by 82% (CY20-25), the second-highest growth in the World. Naturally, they will demand more wealth management services
- MF AUM grew from 3.3 Lakh cr to 37 Lakh cr!
Conclusion -
We have no view of the company.
Industry -
- Number of millionaires in India is set to grow by 82% (CY20-25), the second-highest growth in the World. Naturally, they will demand more wealth management services
- MF AUM grew from 3.3 Lakh cr to 37 Lakh cr!
10/n
Thanks for reading till the end!
Think Simple, Think JST - Stay tuned for more threads :)
Thanks for reading till the end!
Think Simple, Think JST - Stay tuned for more threads :)
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