⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ABCAPITAL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.0
| Stock Code | ABCAPITAL | Market Cap | 90,425 Cr. | Current Price | 345 ₹ | High / Low | 369 ₹ |
| Stock P/E | 31.6 | Book Value | 103 ₹ | Dividend Yield | 0.00 % | ROCE | 9.48 % |
| ROE | 12.5 % | Face Value | 10.0 ₹ | DMA 50 | 345 ₹ | DMA 200 | 297 ₹ |
| Chg in FII Hold | -0.95 % | Chg in DII Hold | 1.85 % | PAT Qtr | 916 Cr. | PAT Prev Qtr | 676 Cr. |
| RSI | 36.8 | MACD | -3.91 | Volume | 97,22,743 | Avg Vol 1Wk | 64,53,892 |
| Low price | 149 ₹ | High price | 369 ₹ | PEG Ratio | 0.30 | Debt to equity | 4.56 |
| 52w Index | 89.2 % | Qtr Profit Var | -11.2 % | EPS | 11.0 ₹ | Industry PE | 23.1 |
📊 Core Financials
- Revenue & Profitability: PAT rose from 676 Cr. to 916 Cr., but quarterly profit variance shows –11.2%, indicating volatility.
- Margins: ROE at 12.5% and ROCE at 9.48% are modest, reflecting average efficiency.
- Debt: Debt-to-equity ratio of 4.56 indicates high leverage, a major risk factor.
- Cash Flow: Profitability supports cash generation, but high debt pressures sustainability.
💹 Valuation Indicators
- P/E Ratio: 31.6 vs. industry average of 23.1 — slightly expensive.
- P/B Ratio: Current price (₹345) vs. book value (₹103) → ~3.35x, moderate premium.
- PEG Ratio: 0.30, suggesting growth is attractively priced relative to earnings.
- Intrinsic Value: Valuation moderately stretched, but PEG indicates potential upside if debt is managed.
🏢 Business Model & Competitive Advantage
- Aditya Birla Capital (ABCAPITAL) operates in financial services, including lending, insurance, asset management, and advisory.
- Competitive advantage lies in diversified offerings, strong brand presence, and integration within the Aditya Birla Group ecosystem.
📈 Technicals & Entry Zone
- DMA 50 (₹345) and DMA 200 (₹297) show consolidation near current price.
- RSI at 36.8 indicates oversold territory; MACD negative suggests bearish sentiment.
- Entry Zone: Attractive near ₹320–340 for accumulation.
- Long-Term Holding: Suitable for investors seeking exposure to financial services, but debt levels must be monitored closely.
✅ Positive
- EPS at ₹11.0 reflects earnings base.
- DII holdings increased (+1.85%), showing strong domestic institutional support.
- PEG ratio (0.30) indicates growth is undervalued relative to earnings potential.
⚠️ Limitation
- High debt-to-equity ratio (4.56) increases financial risk.
- ROE (12.5%) and ROCE (9.48%) are modest compared to peers.
- Dividend yield of 0.00% offers no immediate shareholder return.
📉 Company Negative News
- Quarterly PAT variance –11.2%, showing earnings volatility.
- FII holdings decreased (–0.95%), showing reduced foreign investor confidence.
📈 Company Positive News
- Quarterly PAT improved to 916 Cr., showing operational strength despite volatility.
- DII holdings increased significantly (+1.85%), reflecting strong domestic support.
🏭 Industry
- Financial services sector benefits from rising demand for credit, insurance, and investment products in India.
- Industry average P/E (23.1) highlights ABCAPITAL’s slightly premium valuation.
🔎 Conclusion
- Aditya Birla Capital shows diversified business strength but faces high debt and modest efficiency ratios.
- Valuations are moderately stretched, but PEG ratio suggests potential upside if debt is reduced.
- Recommendation: Accumulate near ₹320–340. Long-term holding viable for investors seeking exposure to India’s financial services growth, provided debt levels are managed effectively.