Anand Rathi Wealth IPO: How good is it?

In our story, Anand Rathi Wealth IPO: Information analysis, we have shared the key details of the IPO, along with important information about the company. Here we will answer some questions about Anand Rathi Wealth and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? Yes. The company reported earnings before tax of Rs 64 crore for FY21. 2) Will the company be able to scale up its business? Yes. Mutual fund penetration and individual wealth is expected to increase rapidly in the next few years, which will help the company expand its business comfortably. 3) Does the company have recognisable brands truly valued by its customers? Yes. Anand Rathi wealth management is a reputed company among high net worth individuals, and the company has been able to increase its number of clients consistently. 4) Does the company have high repeat customer usage? Yes. Around 55 per cent of the company's clients have been with it for the last three years. 5) Does the company have a credible moat? No. Even though the company has a recognised reputation, it does not offer anything unique that other companies cannot provide. 6) Is the company sufficiently robust to major regulatory or geopolitical risks? Yes. Even though the company exists in a highly regulated environment, it has adhered to all the regulations. This includes the issue regarding whether the company should be declared an NBFC, where the management has sufficient reasons to defend itself. 7) Is the business of the company immune from easy replication by new players? No. There are many players, both Indian and foreign, that are launching their wealth managem