ABCAPITAL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | ABCAPITAL | Market Cap | 93,589 Cr. | Current Price | 357 ₹ | High / Low | 376 ₹ |
| Stock P/E | 30.0 | Book Value | 110 ₹ | Dividend Yield | 0.00 % | ROCE | 8.75 % |
| ROE | 11.6 % | Face Value | 10.0 ₹ | DMA 50 | 342 ₹ | DMA 200 | 318 ₹ |
| Chg in FII Hold | 1.86 % | Chg in DII Hold | -0.96 % | PAT Qtr | 777 Cr. | PAT Prev Qtr | 749 Cr. |
| RSI | 51.8 | MACD | 4.07 | Volume | 45,57,344 | Avg Vol 1Wk | 68,25,398 |
| Low price | 217 ₹ | High price | 376 ₹ | PEG Ratio | 0.17 | Debt to equity | 4.83 |
| 52w Index | 88.1 % | Qtr Profit Var | 18.8 % | EPS | 11.9 ₹ | Industry PE | 30.3 |
📊 Financials: Aditya Birla Capital (ABCAPITAL) shows moderate fundamentals with ROE at 11.6% and ROCE at 8.75%, reflecting average efficiency. Debt-to-equity is high at 4.83, indicating leveraged operations typical of financial services. Quarterly PAT rose to ₹777 Cr. from ₹749 Cr., showing an 18.8% variance. EPS is ₹11.9, highlighting steady earnings growth.
💰 Valuation: The stock trades at a P/E of 30.0 compared to the industry average of 30.3, suggesting fair valuation. P/B ratio is ~3.2 (Price ₹357 / Book Value ₹110). PEG ratio of 0.17 indicates attractive growth-adjusted valuation. Intrinsic value appears close to current price, making entry moderately attractive.
🏢 Business Model: ABCAPITAL operates across financial services including lending, asset management, insurance, and advisory. Its competitive advantage lies in diversified offerings, strong brand presence, and scale within the Aditya Birla Group. Overall health is stable, supported by earnings growth, though leverage remains a concern.
📈 Entry Zone: A good entry zone would be near ₹320–340, closer to its DMA 200 and below current highs. Long-term holding is favorable given diversified financial services demand, but investors should be cautious about high leverage.
Positive
- 📌 Strong quarterly PAT growth (18.8% variance)
- 📌 EPS of ₹11.9 reflects steady earnings
- 📌 Increase in FII holdings (+1.86%)
- 📌 PEG ratio of 0.17 indicates attractive valuation
Limitation
- ⚠️ High debt-to-equity ratio (4.83)
- ⚠️ ROE (11.6%) and ROCE (8.75%) are modest
- ⚠️ Dividend yield of 0.00% offers no income
- ⚠️ P/B ratio (~3.2) is relatively high
Company Negative News
- 📉 Decline in DII holdings (-0.96%)
Company Positive News
- 📈 Increase in FII holdings (+1.86%)
- 📈 Consistent quarterly profit growth
Industry
- 🏦 Industry PE at 30.3, aligned with ABCAPITAL’s valuation
- 📊 Financial services sector benefits from rising credit demand and insurance penetration in India
Conclusion
🔎 Aditya Birla Capital is fairly valued with consistent earnings growth and strong positioning in diversified financial services. Entry is advisable near ₹320–340. Long-term holding is favorable given industry demand, but investors should monitor leverage and efficiency closely.
Would you like me to also prepare a side-by-side comparison of Aditya Birla Capital vs financial services peers to highlight its relative valuation positioning?