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ANANDRATHI: Future Returns Will Likely Disappoint Despite Stable Margins And Dividend

Update shared on 07 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
25.6%
7D
-2.9%

Analysts have slightly revised their price target on Anand Rathi Wealth to ₹2,510, maintaining their prior fair value while marginally adjusting underlying assumptions such as discount rate, revenue growth, profit margin and future P E expectations to reflect updated risk and earnings profiles.

What's in the News

  • The Board of Directors declared a first interim dividend of INR 6.00 per equity share, equivalent to 120 percent of the INR 5 face value, for FY 2025-26. Payment to eligible shareholders is scheduled within 30 days of the October 13, 2025 declaration, with the record date set as October 17, 2025 (company filing).
  • The Board met on October 13, 2025 to review and approve unaudited standalone and consolidated financial results for the second quarter and half year ended September 30, 2025, following Audit Committee review (company filing).
  • The agenda of the same Board meeting included consideration of an interim dividend for FY 2025-26 and other routine business matters (company filing).

Valuation Changes

  • Fair Value: Unchanged at ₹2,510 per share, indicating no revision to the headline valuation target.
  • Discount Rate: Risen slightly to approximately 14.61 percent from about 14.50 percent, reflecting a modest increase in perceived risk or required return.
  • Revenue Growth: Effectively unchanged at around 21.28 percent, indicating stable medium term growth expectations.
  • Net Profit Margin: Essentially flat at about 35.11 percent, suggesting no material shift in long term profitability assumptions.
  • Future P E: Risen marginally to roughly 45.39x from about 45.25x, implying a slightly higher multiple applied to forward earnings.

Disclaimer

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