Anand Rathi Wealth Ltd. IPO

Anand Rathi Wealth Ltd. IPO - SWOT Analysis

Strengths:

Anand Rathi Wealth caters to high-net-worth individuals as its major consumers.. It also provides free value-added services such as supplemental wills, succession planning, and estate planning. Anand Rathi Wealth has a unique marketing strategy that includes using promotional tactics, hiring additional relationship managers, and expanding geographically.

Weaknesses:

Anand Rathi Wealth's performance suffered as a result of the pandemic's protracted periods of market volatility and sluggishness in corporate activities. This may be seen in the company's revenue, which dropped by 20% in FY21. To compensate for business losses, the corporation cut "Employee Benefit Expenses," among other financial liabilities, as a result of lower income.

Opportunities:

Growth in the brokerage market: The brokerage market expanded at a 7.69 percent annual pace in FY20, from Rs. 19,500 crores in FY19 to Rs. 21,000 crores in FY20. From a traction-based strategy, the industry is gradually shifting to a free-based model. Brokers may make a lot of money by offering fund-based services like margin funding and lending against stocks, which are becoming increasingly popular.

Technological advancements: Following demonetisation, online services have been a primary engine of a rising economy. Following the stock market crash, mobile-based trading and reliable broadband access have also contributed in recovering the brokerage business. It has also resulted in an increase in the number of people opening online Demat accounts through user-friendly smartphone apps.

Threats:

Lack of financial literacy: The majority of Indians do not yet have a thorough understanding of stocks, shares, and mutual funds. Understandably, they lack the information necessary to invest in these high-yielding instruments, as well as other basic financial principles such as asset allocation, risk-reward ratio, diversification, and so on. As a result, they are more likely to concentrate their resources on traditional investment strategies.