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ABCAPITAL - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.3

Last Updated Time : 19 Mar 26, 07:09 pm

Fundamental Rating: 3.3

Stock Code ABCAPITAL Market Cap 85,958 Cr. Current Price 328 ₹ High / Low 369 ₹
Stock P/E 28.7 Book Value 103 ₹ Dividend Yield 0.00 % ROCE 9.48 %
ROE 12.5 % Face Value 10.0 ₹ DMA 50 338 ₹ DMA 200 308 ₹
Chg in FII Hold -0.95 % Chg in DII Hold 1.85 % PAT Qtr 749 Cr. PAT Prev Qtr 916 Cr.
RSI 46.8 MACD -7.20 Volume 26,91,795 Avg Vol 1Wk 34,86,761
Low price 166 ₹ High price 369 ₹ PEG Ratio 0.27 Debt to equity 4.56
52w Index 79.8 % Qtr Profit Var 22.1 % EPS 11.4 ₹ Industry PE 24.7

📊 Core Financials

  • Profitability: PAT declined from ₹916 Cr. to ₹749 Cr. (Qtr Profit Var: -22.1%)
  • Margins: ROE at 12.5% is moderate, ROCE at 9.48% indicates average efficiency
  • Debt: Debt-to-equity ratio at 4.56 shows high leverage
  • Cash Flow: EPS at ₹11.4 is modest relative to market cap

💰 Valuation Indicators

  • P/E Ratio: 28.7 vs Industry PE of 24.7 → slightly overvalued
  • P/B Ratio: Current Price ₹328 vs Book Value ₹103 → ~3.2x book
  • PEG Ratio: 0.27 → growth priced attractively
  • Intrinsic Value: Fair valuation but trading at a mild premium

🏢 Business Model & Health

  • Market Cap: ₹85,958 Cr. reflects strong presence in financial services
  • Dividend Yield: 0.00% indicates reinvestment focus
  • Competitive Advantage: Diversified financial services across lending, insurance, and asset management
  • Overall Health: Strong sector presence, but high leverage and profit decline raise caution

🎯 Entry Zone & Long-Term Guidance

  • Entry Zone: Attractive near ₹290–310 for accumulation
  • Long-Term Holding: Suitable for long-term investors if leverage reduces and earnings stabilize

✅ Positive

  • Strong diversified financial services portfolio
  • DII holding increased (+1.85%)
  • PEG ratio (0.27) suggests attractive growth pricing

⚠️ Limitation

  • High debt-to-equity ratio (4.56)
  • P/E ratio (28.7) slightly above industry average
  • No dividend yield (0.00%)

📉 Company Negative News

  • Quarterly PAT declined to ₹749 Cr. (-22.1%)
  • FII holding decreased (-0.95%)

📈 Company Positive News

  • DII holding increased significantly (+1.85%)
  • Strong presence in diversified financial services

🏭 Industry

  • Industry PE: 24.7, lower than ABCAPITAL’s PE
  • Financial services sector benefits from rising credit demand and insurance penetration

🔎 Conclusion

ABCAPITAL shows strong sector presence and attractive PEG ratio, supported by rising domestic institutional interest.

However, high leverage and declining profits raise caution.

The stock is suitable for long-term investors focused on financial services growth, with entry recommended near ₹290–310 to balance risk and reward.

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