Anand Rathi Wea. (ANANDRATHI)

FairStock Score: 58/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I begin with the business: Anand Rathi Wea. earns ₹100 Cr net profit on ₹290 Cr quarterly sales, with ROE 54.35% and ROCE 56.26%. Debt/Equity is only 0.08, Piotroski F-Score is 8/9, Altman Z-Score is 19.42, and free cash flow is ₹345 Cr. That is a high-quality, asset-light distributor with excellent returns and a strong balance sheet. Sales grew 54.06%, profit grew 76.98%, and five-year revenue CAGR is 33.30%—profit outrunning sales suggests operating leverage. Promoter holding is 43.11%, aligning interests, though dividend yield of 0.32% is token. The moat is visible in the numbers: 54.35% ROE, 56.26% ROCE, low debt, and high Piotroski/Altman scores are not typical for a commodity distributor. But Graham would immediately ask price. At ₹2174.70, market cap is ₹36,109 Cr, P/E is 78.74, P/B is 36.18, EV/EBITDA is 55.96, and PEG is 4.09. Book value is ₹60.12, so we pay about 36 times book. Graham Number is ₹283.37 and DCF intrinsic value is ₹1870.35, both below the market price; margin of safety is -985.49%. That is not a bargain—it is optimism. A business this good can still hurt if bought too dear. FairStock score of 58/100 STEADY suggests quality but not screaming value. I would watch quarterly sales and profit, whether the 33.30% revenue CAGR continues, free cash flow conversion, and any compression in ROE/ROCE. My verdict: excellent financials, but valuation leaves no margin of safety. I’d keep it on a watchlist and wait for Mr. Market to offer a sensible price.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer