Stock Market 2022 Outlook: Expect 10-15% upside despite Omicron, Anand Rathi says; remains optimistic on Anand Rathi Wealth’s Q3 earnings

In a special 2022 edition of News Pe Views with Zee Business Managing Editor Anil Singhvi, Anand Rathi Wealth’s founder and chairman Anand Rathi decodes the market outlook for 2022 and explains the growth outlook of the company while discussing the third quarter results of this fiscal. 

The overall market looks goods he said adding that the corporate performance will continue to be strong giving an uplift to the market. On an average, the market would witness an upside of 10-15 per cent in 2022 despite omicron, he further said suggesting shocks from it will not have much impact.

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Banking on the strong inflows and growth of Asset Under Management (AUM), the India’s leading non-banking mutual fund’s founder was hopeful of a robust October-December quarter performance of the financial year 2021-22. 

He further states that we expect the company would continue to report robust growth quarterly and annually going forward, also wants to see margins to grow around 45-50 per cent.” 

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The company reported over 42 per cent growth in Q3 margins, its revenue jumped 56 per cent to Rs 106 crore, while operating profit stood at Rs 45 crore, up 114 per cent year-on-year. Similarly, its profit grew 144 per cent to 32 crore in the quarter YoY, and AUM till December is at Rs 32000 crore. 

The shares of Anand Rathi Wealth was listed last month with 6 per cent premium to 600 per share as against issue price of Rs 550 per share on the exchanges. The stock of Friday closed over 2 per cent lower to Rs 621 per share on the BSE, as compared to 0.24 per cent rise in the BSE Sensex.  

Rathi said, “We have witnessed a 28 per cent YoY growth in AUM, of which 80 per cent of our portfolio is equity based. Our value proposition to customer is unique and our per client yield is 1.2 per cent, which largely comes from new client and increase is assets under management.”