ABLBL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | ABLBL | Market Cap | 12,468 Cr. | Current Price | 102 ₹ | High / Low | 176 ₹ |
| Stock P/E | 72.8 | Book Value | 11.4 ₹ | Dividend Yield | 0.00 % | ROCE | 13.9 % |
| ROE | 12.8 % | Face Value | 10.0 ₹ | DMA 50 | 104 ₹ | DMA 200 | 120 ₹ |
| Chg in FII Hold | -3.47 % | Chg in DII Hold | 3.19 % | PAT Qtr | 30.1 Cr. | PAT Prev Qtr | 97.3 Cr. |
| RSI | 48.8 | MACD | 0.01 | Volume | 5,40,861 | Avg Vol 1Wk | 5,69,341 |
| Low price | 87.7 ₹ | High price | 176 ₹ | Debt to equity | 2.08 | 52w Index | 16.4 % |
| Qtr Profit Var | -29.7 % | EPS | 1.10 ₹ | Industry PE | 44.1 |
📊 Financials: Aditya Birla Capital Limited (ABLBL) shows weak fundamentals with ROE at 12.8% and ROCE at 13.9%, reflecting modest efficiency. Debt-to-equity is high at 2.08, indicating leveraged operations. Quarterly PAT fell sharply to ₹30.1 Cr. from ₹97.3 Cr., showing a -29.7% variance. EPS is ₹1.10, highlighting weak earnings power relative to its market capitalization.
💰 Valuation: The stock trades at a P/E of 72.8 compared to the industry average of 44.1, suggesting overvaluation. P/B ratio is ~8.9 (Price ₹102 / Book Value ₹11.4). PEG ratio is unavailable due to inconsistent earnings. Intrinsic value appears lower than current price, making entry unattractive at present levels.
🏢 Business Model: ABLBL operates in financial services, focusing on lending and capital management. Its competitive advantage lies in brand presence and group backing. However, profitability metrics remain weak, limiting overall health.
📈 Entry Zone: A safer entry zone would be near ₹85–95, closer to its 52-week low. Current valuation does not justify fresh entry. Long-term holding is risky unless profitability stabilizes and valuation normalizes.
Positive
- 📌 ROE (12.8%) and ROCE (13.9%) reflect moderate efficiency
- 📌 Increase in DII holdings (+3.19%)
- 📌 Strong brand presence within Aditya Birla Group
Limitation
- ⚠️ High P/E ratio (72.8) vs industry average (44.1)
- ⚠️ High debt-to-equity ratio (2.08)
- ⚠️ EPS of ₹1.10 is weak
- ⚠️ Dividend yield of 0.00% offers no income
- ⚠️ Sharp decline in quarterly PAT (-29.7%)
Company Negative News
- 📉 Decline in FII holdings (-3.47%)
- 📉 Significant drop in quarterly profit
Company Positive News
- 📈 Increase in DII holdings (+3.19%)
- 📈 Group backing provides stability
Industry
- 🏦 Industry PE at 44.1, lower than ABLBL’s valuation
- 📊 Financial services sector benefits from rising credit demand in India
Conclusion
🔎 ABLBL is fundamentally weak with modest return metrics and overvaluation despite group backing. Entry is advisable only near ₹85–95. Long-term holding is risky unless profitability improves and valuation aligns with industry norms.
Would you like me to also prepare a side-by-side comparison of ABLBL vs financial services peers to highlight its relative valuation positioning?