Zerodha is valued at Rs 30,000 crore or 10-15 times its earnings: CEO Nithin Kamath

Kamath's valuation comes just two days after Zerodha's FY23 results were out

Discount broking major Zerodha is currently valued at Rs 30,000 crore or $3.61 billion and is usually calculated as 10-15 times the company's earnings (Profit After Tax) wrote Zerodha's Co-Founder and Chief Executive Officer (CEO) Nithin Kamath on X (formerly Twitter) on September 28.

"We value ourselves in the range of 10 to 15 times our earnings (PAT). At the lower end when near bull market highs. This is how we have been valuing ourselves for all buybacks (founders and team) for a while now. So around Rs 30,000 crore," Kamath wrote. He also expects Zerodha to grow at around 10-15 percent in the present market condition.

"We think that at the scale we are at, we can potentially grow by 10 to 15 percent in the long run, factoring in the drawdowns that are guaranteed," Kamath wrote.

This comes just two days after Zerodha's FY23 results were out. In the last financial year, Zerodha reported a 38.5 percent growth in revenue for the financial year 2022-23 at Rs 6,875 crore compared with the previous financial year.

The firm also reported a 39 percent growth in profits, which stood at Rs 2,907 crore in FY23. The Bengaluru-based online stock trading platform reported a revenue of Rs 4,964 crore and a profit of Rs 2,094 crore in FY22.

Kamath also added that the firm's diversification strategies will help in maintaining the long-term growth of the company.

On September 5, Zerodha Asset Management Ltd announced the launch of mutual fund schemes, nearly a month after it got its final license from the Securities and Exchange Board of India (SEBI).

"We are trying to diversify with everything we are doing in Rainmatter, our public holdings, and with large investments in the AMC business ZerodhaAMC, insurance advisory, and loan against securities... Today, the revenues from these businesses are not significant, but hopefully, they will go up and help us maintain long-term growth," he wrote.