Anand Rathi Shar (ARSSBL)

FairStock Score: 41/100 — MIXED

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

Key Financials

Strengths

• High promoter holding of 69.92% aligns management with minority shareholders.
• Profit growth of 77.88% and sales growth of 21.89% show strong recent momentum.
• Piotroski F-score of 7/9 indicates solid financial health across profitability, leverage, and efficiency.
• ROCE of 21.26% reflects good capital productivity.
• PEG of 0.59 suggests attractive growth-adjusted valuation if growth persists.

Concerns

• P/E of 29.30 and P/B of 2.33 offer little margin of safety; zero dividend yield.
• Stockbroking revenues are highly cyclical; 77.88% profit growth may be inflated by a buoyant market.
• Debt/equity of 0.63 makes the business vulnerable if earnings drop.
• FairStock Score of 44/100 suggests mixed fundamentals and profitability quality.

AI Analysis

Anand Rathi Shar is a stockbroking and allied financial services firm. This is a business I can understand, but I also know that brokerage profits are tied to the mood of the market. The latest quarter shows sales of ₹248 Cr and net profit of ₹38 Cr. Sales grew 21.89% and profit grew a stunning 77.88%. A Piotroski F-score of 7/9 tells me the recent financial condition is reasonable, and ROCE of 21.26% is better than the 13.96% return on equity. That gap hints at leverage, and the debt/equity of 0.63 confirms this is not a debt-free business. At ₹585, the market capitalisation is ₹3,178 Cr. I am paying 29.30 times earnings and 2.33 times book value. Book value stands at ₹251.43, but in a cyclical business book value offers only limited downside protection if markets turn. The dividend yield is zero, which is disappointing for a shareholder waiting for returns. The 52-week range of ₹416 to ₹794.85 shows how volatile the stock can be. On the positive side, promoter holding is 69.92%, so those running the firm have real skin in the game. The PEG ratio of 0.59 looks attractive, but only if you believe 77.88% profit growth can continue. For a broker, that is a dangerous assumption. Today's high volumes and buoyant markets may be flattering the numbers. I would not anchor on the recent growth rate. Graham would ask for a margin of safety, and at 29 times earnings, I do not see enough of one. I would keep it on a watchlist and wait for a better price or evidence that returns can survive a downturn. This is a well-run company, but the price already reflects a good outcome.

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