Anand Rathi Share and Stock Brokers IPO

The Highest ARPC Amongst Peer Set

Anand Rathi Share and Stock Brokers Limited recorded the highest Average Revenue Per Client (ARPC) during Fiscal 2024 (₹30,922), driven by strong client vintage, a mature client age profile, and personalised management. Over 60% of active clients have relationships exceeding three years, with 85% above 30 years old, reflecting deep client trust and engagement.

Strategic Use of MTF Business to Drive Higher ARPC

Anand Rathi’s Margin Trading Facility (MTF) enhances client flexibility and returns, contributing to significantly higher ARPC for users versus non-users. With a rapidly growing MTF book (₹7,714.66 million as of Sept 2024) and zero non-performing assets, the firm strategically leverages MTF to boost revenue while managing risks effectively.

Full-Service Brokerage House with Diversified Revenue Streams

Anand Rathi’s revenue comprises broking and non-broking segments, with non-broking growing faster at a 35.54% CAGR (Fiscal 2022–24). Assets under management rose to ₹49,045.90 million, and Margin Trading Facility book grew at 42.34% CAGR, reflecting diversified income from equity trading, mutual funds, and margin trading.

Nationwide Reach with Strong Digital Infrastructure

Anand Rathi Share and Stock Brokers Limited operates across 333 cities via 90 branches and 1,123 Authorised Persons, supported by robust digital platforms. With 55.80% clients in Tier 3 and beyond and 37.24% brokerage income from digital channels, the firm ensures seamless acquisition and servicing of clients pan-India through web and mobile technologies.

Legacy-Driven Leadership with Proven Expertise

Anand Rathi Share and Stock Brokers Limited, part of the renowned Anand Rathi Group, leverages a 30-year legacy in financial services. Guided by seasoned promoters, long-serving directors, and a skilled management team, the company benefits from brand strength, strategic synergies, and deep industry expertise across broking, wealth, lending, insurance, and asset management.

Strong Financial Growth Backed by Consistent Performance

Anand Rathi Share and Stock Brokers Limited has shown consistent financial growth, with revenue from operations rising from ₹507.99 million in FY22 to ₹772.90 million in FY24 at a 23.35% CAGR. Supported by rising client numbers, growing assets under distribution, and improving margins, the company demonstrates operational efficiency and robust business expansion.

More About Anand Rathi Share and Stock Brokers Limited

Anand Rathi Share and Stock Brokers Limited is a well-established full-service brokerage house in India with over 30 years of experience. Operating under the brand ‘Anand Rathi,’ the company offers broking services, margin trading facilities, and distribution of financial products to a diverse clientele that includes retail investors, high net worth individuals (HNIs), ultra-high net worth individuals (UHNIs), and institutional clients.

Wide Range of Investment Offerings

The firm’s investment portfolio spans multiple asset classes, including:

• Equity

• Derivatives

• Commodities

• Currency markets

As of September 30, 2024, 146,029 active clients, representing nearly 85% of the total active client base, were above 30 years of age. This key demographic focus, combined with a strong three-decade track record, positions Anand Rathi for sustained growth.

Extensive Network and Presence

Anand Rathi operates through a comprehensive network:

• 90 branches across 54 cities in India

• 1,123 authorised persons spanning 333 cities

• Robust online and digital platforms

This multi-channel presence allows the company to serve clients across Tier 1, Tier 2, Tier 3, and other cities efficiently.

Core Services

Broking Services: These cater to retail clients, HNIs, UHNIs, and institutions, enabling trading in equities (cash delivery and intraday), futures and options, commodities, and currency segments. The company also provides:

• Algorithmic trading services

• Assistance with initial public offerings (IPOs)

• Securities lending and borrowing

Margin Trading Facility: Anand Rathi offers margin trading facilities that allow clients to leverage their eligible collaterals to finance trades, adhering to stock exchange margin requirements.

Distribution of Financial Products: The company distributes third-party investment products such as mutual funds, alternative investment funds, structured products, corporate fixed deposits, non-convertible debentures, bonds, and portfolio management services via its relationship managers and digital platforms.

Technological Edge and Client Engagement

Digitisation and technological innovation remain key priorities, with proprietary platforms like Trade Mobi, AR Invest, MF Client, and Trade Xpress enhancing client experience by offering seamless trading and investment processes.

Financial Performance Highlights

• Revenue from operations grew at a CAGR of 26.90% from ₹4,233.65 million in Fiscal 2022 to ₹6,817.88 million in Fiscal 2024.

• Profit after tax increased at a CAGR of 23.35%, from ₹507.99 million to ₹772.90 million in the same period.

Industry Outlook

India’s financial services industry is poised for robust growth in 2025, driven by digital adoption, rising financial literacy, and expanding retail participation. This environment presents significant opportunities for full-service brokerage firms like Anand Rathi Share and Stock Brokers Limited.

 Stock Broking & Securities Market

• Market Size & Growth: The Indian security brokerage market is projected to reach USD 4.25 billion in 2025, expanding at a CAGR of 7.89% to USD 6.21 billion by 2030.

• Growth Drivers:

• Increased digital adoption and mobile trading platforms.

• Rising financial literacy and retail investor participation.

• Supportive government policies and regulatory frameworks.

 Margin Trading Facility (MTF)

• Market Expansion: The MTF book size grew from approximately ₹50,000 crore in March 2024 to a peak of ₹85,000 crore in September 2024.

• Growth Drivers:

• Investor interest in leveraging positions for higher returns.

• Bullish stock market trends and increased market participation.

Mutual Fund & Investment Product Distribution

• Assets Under Management (AUM): India’s mutual fund industry crossed ₹70 trillion in AUM as of March 2025, marking a 22.25% year-on-year growth.

• Growth Drivers:

• Surge in direct mutual fund plans driven by tech-savvy investors.

• Regulatory initiatives promoting small-ticket investments to deepen equity reach

How Will Anand Rathi Share and Stock Brokers Limited Benefit

• Anand Rathi will benefit from India’s growing financial literacy and retail investor base by offering diversified products tailored to informed individuals.

• Its strong presence across 333 cities ensures accessibility in emerging Tier 2 and Tier 3 markets, aligning with retail expansion trends.

• The surge in margin trading facilities complements Anand Rathi’s well-regulated MTF services, helping clients maximise market opportunities.

• A broad asset class offering—equity, derivatives, commodities, and currency—aligns well with investors’ increasing appetite for diversified portfolios.

• Rising mutual fund AUM enhances opportunities for Anand Rathi’s distribution services through its relationship managers and digital platforms.

• Robust proprietary platforms like Trade Mobi and AR Invest meet the demand for tech-enabled investing among younger, digital-savvy investors.

• Its consistent financial growth (26.90% revenue CAGR and 23.35% PAT CAGR) highlights operational strength in a rapidly expanding industry.

• A focused demographic (85% above 30 years) positions the firm to serve serious long-term investors amid market maturity.

Peer Group Comparison

Name of Company	Face Value (₹)	Revenue (₹ mn)	EPS (₹)	NAV (₹)	P/E	RONW (%)
Anand Rathi Share and Stock Brokers Limited	5.00	6,817.88	19.03	88.53	[●]	23.50%
Peer Groups
Motilal Oswal Financial Services	1.00	70,677.70	164.63	397.04	10.61*	32.50%
IIFL Capital Services Ltd (formerly IIFL Securities)	2.00	22,312.87	16.73	52.24	11.86	32.72%
Geojit Financial Services	1.00	6,141.34	6.06	28.38	10.96	17.48%
ICICI Securities Limited	5.00	50,492.10	52.51	120.38	16.02	50.09%
Angel One Limited	10.00	72,716.84	134.21	357.06	14.82	43.29%

Key Strategies for Anand Rathi Share and Stock Brokers Limited

Enhancing Revenue per Client through Cross-Selling and Margin Funding

Anand Rathi Share and Stock Brokers Limited focuses on increasing average revenue per client by cross-selling diverse investment solutions, including broking, margin funding, and distribution products. The company plans to scale its Margin Trading Facility (MTF) business to boost client retention and strengthen investment consolidation.

Expanding Investment Solutions to Deepen Client Wallet Share

To meet varied investor needs, Anand Rathi Share and Stock Brokers Limited aims to become a comprehensive solutions provider. It plans to grow its distribution business by leveraging machine learning, upskilling relationship managers, and offering research-driven advisory to cross-sell investment products and increase client wallet share.

Broadening Client Base via Geographical and Digital Expansion

Anand Rathi Share and Stock Brokers Limited seeks to grow its client base in Tier 2, Tier 3 cities through digital platforms and strategic partnerships. The company also plans to target high-income, tech-savvy investors by enhancing mobile apps, social media outreach, and increasing its physical network.

Leveraging Technology for Operational Excellence and Client Engagement

The company is committed to digital transformation, investing in IT to improve efficiency, client experience, and risk management. Anand Rathi Share and Stock Brokers Limited explores Generative AI for intelligent recommendations, aiming to empower teams and enhance decision-making through data analytics, automation, and cutting-edge technologies