⚠ 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.
ABLBL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | ABLBL | Market Cap | 13,792 Cr. | Current Price | 113 ₹ | High / Low | 176 ₹ |
| Stock P/E | 79.1 | Book Value | 10.8 ₹ | Dividend Yield | 0.00 % | ROCE | % |
| ROE | 10.7 % | Face Value | 10.0 ₹ | DMA 50 | 119 ₹ | DMA 200 | 136 ₹ |
| Chg in FII Hold | -5.34 % | Chg in DII Hold | 5.57 % | PAT Qtr | 97.3 Cr. | PAT Prev Qtr | 22.6 Cr. |
| RSI | 31.0 | MACD | -5.54 | Volume | 9,77,196 | Avg Vol 1Wk | 11,12,146 |
| Low price | 101 ₹ | High price | 176 ₹ | Debt to equity | 2.56 | 52w Index | 16.1 % |
| Qtr Profit Var | 59.0 % | EPS | ₹ | Industry PE | 44.3 |
📊 Core Financials
- Revenue & Profitability: PAT improved significantly from 22.6 Cr. to 97.3 Cr., but overall profitability remains modest.
- Margins: ROE at 10.7% is average, while ROCE is not reported, limiting efficiency analysis.
- Debt: Debt-to-equity ratio of 2.56 indicates high leverage, a major risk factor.
- Cash Flow: Profitability supports cash generation, but high debt pressures sustainability.
💹 Valuation Indicators
- P/E Ratio: 79.1 vs. industry average of 44.3 — highly overvalued.
- P/B Ratio: Current price (₹113) vs. book value (₹10.8) → ~10.5x, premium valuation.
- PEG Ratio: Not available, limiting growth-adjusted valuation analysis.
- Intrinsic Value: Valuation appears stretched given high debt and modest returns.
🏢 Business Model & Competitive Advantage
- Aditya Birla Capital Limited (ABLBL) operates in lending and financial services, focusing on diversified financial products.
- Competitive advantage lies in group backing and diversified offerings, but debt levels weaken overall health.
📈 Technicals & Entry Zone
- DMA 50 (₹119) and DMA 200 (₹136) are above current price, showing weakness.
- RSI at 31.0 indicates oversold territory; MACD negative suggests bearish sentiment.
- Entry Zone: Attractive near ₹105–115 for accumulation.
- Long-Term Holding: Risky unless debt is reduced and profitability improves.
✅ Positive
- Quarterly PAT improved significantly to 97.3 Cr.
- DII holdings increased (+5.57%), showing strong domestic support.
- Group backing under Aditya Birla ensures stability and brand strength.
⚠️ Limitation
- High debt-to-equity ratio (2.56) increases financial risk.
- P/E ratio (79.1) is far above industry average (44.3).
- Dividend yield of 0.00% offers no immediate shareholder return.
📉 Company Negative News
- FII holdings decreased (–5.34%), showing reduced foreign investor confidence.
- Stock trading below DMA 50 and DMA 200, indicating technical weakness.
📈 Company Positive News
- Quarterly PAT surged compared to previous quarter, showing operational improvement.
- DII holdings increased strongly (+5.57%), reflecting domestic institutional confidence.
🏭 Industry
- Financial services sector benefits from rising demand for credit and investment products in India.
- Industry average P/E (44.3) highlights ABLBL’s premium valuation.
🔎 Conclusion
- ABLBL shows group strength and improved quarterly profitability but faces high debt and stretched valuations.
- Institutional support from DIIs is positive, but reduced FII confidence is a concern.
- Recommendation: Accumulate only near ₹105–115. Long-term holding viable only if debt is reduced and ROE/ROCE improve significantly.