ABCAPITAL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.4

Let’s deep-dive into Aditya Birla Capital Limited (ABCAPITAL) — a financial services powerhouse with a diverse footprint, currently straddling growth promise and structural debt burdens.

💰 Core Financial Overview

Profitability & Returns

ROE: 11.5%, ROCE: 9.33% — moderate efficiency, typical for NBFCs and financial conglomerates.

EPS: ₹12.8 — not explosive, but decent considering subdued valuations.

Qtr PAT: ₹865 Cr vs ₹708 Cr Prev Qtr — solid jump, yet Qtr Profit Var: -29.7% suggests volatility across segments.

Debt Profile

Debt-to-Equity: 4.61 — ⚠️ very high, though expected for lending-heavy businesses; needs close monitoring.

Dividend Yield: 0.00% — signals retained earnings are channelled back into growth ops.

📊 Valuation Metrics

Metric Value Takeaway

P/E Ratio 20.1 Below Industry PE: 26.1, offers mild undervaluation

P/B Ratio ~2.15 Reasonable for financials

PEG Ratio 0.79 ✅ Appealing — indicates fair price-growth alignment

Intrinsic Value Slightly Above CMP Leans undervalued, subject to debt risk pricing

🔍 Business Model & Competitive Moat

Operates in lending, insurance, asset management, and advisory — making it a full-spectrum financial player.

Strong brand under Aditya Birla Group; benefits from synergy across verticals.

Has digital aspirations, but faces intense competition from agile fintech disruptors.

Institutional tone

FII Hold ↓ -1.36% — cautious foreign outlook

DII Hold ↑ +2.27% — positive domestic accumulation signals confidence

📈 Technical Signals

RSI: 38.5 — inching toward oversold; watch for reversal signs.

MACD: 0.76 — slightly bullish crossover; momentum building.

Trading at 50 DMA, above 200 DMA — neutral to mildly positive trend.

52W Range: ₹149–₹283, CMP near median — not stretched, potential consolidation.

📍 Suggested Entry Zone & Long-Term Outlook

Entry Zone: ₹230–₹245 — near support levels and acceptable valuation.

Holding Guidance

Suitable for investors bullish on India’s financial deepening story.

Long-term tailwinds include insurance penetration, retail credit, and digital transformation.

Monitor debt gearing and quarterly segmental profitability.

Want to compare this with other diversified financial entities like Bajaj Finserv, IIFL Finance, or Cholamandalam? It might bring some extra clarity to your portfolio construction 🔎📊.

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