ABSLAMC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | ABSLAMC | Market Cap | 29,207 Cr. | Current Price | 1,010 ₹ | High / Low | 1,124 ₹ |
| Stock P/E | 29.6 | Book Value | 139 ₹ | Dividend Yield | 2.41 % | ROCE | 32.7 % |
| ROE | 25.6 % | Face Value | 5.00 ₹ | DMA 50 | 995 ₹ | DMA 200 | 877 ₹ |
| Chg in FII Hold | -0.30 % | Chg in DII Hold | 0.76 % | PAT Qtr | 192 Cr. | PAT Prev Qtr | 274 Cr. |
| RSI | 49.1 | MACD | 7.08 | Volume | 1,19,464 | Avg Vol 1Wk | 2,70,578 |
| Low price | 702 ₹ | High price | 1,124 ₹ | PEG Ratio | 1.58 | Debt to equity | 0.02 |
| 52w Index | 73.2 % | Qtr Profit Var | -15.7 % | EPS | 34.1 ₹ | Industry PE | 30.2 |
📊 Financials: Aditya Birla Sun Life AMC (ABSLAMC) shows strong fundamentals with ROE at 25.6% and ROCE at 32.7%, reflecting excellent efficiency. Debt-to-equity is very low at 0.02, indicating a virtually debt-free balance sheet. Quarterly PAT fell to ₹192 Cr. from ₹274 Cr., showing a -15.7% variance. EPS is ₹34.1, highlighting solid earnings power.
💰 Valuation: The stock trades at a P/E of 29.6 compared to the industry average of 30.2, suggesting fair valuation. P/B ratio is ~7.3 (Price ₹1,010 / Book Value ₹139). PEG ratio of 1.58 indicates moderately expensive growth-adjusted valuation. Intrinsic value appears close to current price, making entry moderately attractive.
🏢 Business Model: ABSLAMC operates in asset management, offering mutual funds and investment solutions. Its competitive advantage lies in brand strength, diversified product offerings, and scale within the Aditya Birla Group. Overall health is strong, supported by high returns and low leverage, though profit volatility is a concern.
📈 Entry Zone: A good entry zone would be near ₹900–950, closer to its DMA 200 and below current highs. Long-term holding is favorable given strong fundamentals and industry demand, but investors should monitor profit consistency.
Positive
- 📌 Strong ROE (25.6%) and ROCE (32.7%)
- 📌 Virtually debt-free (Debt-to-equity 0.02)
- 📌 EPS of ₹34.1 reflects solid earnings
- 📌 Dividend yield of 2.41% provides income
- 📌 Increase in DII holdings (+0.76%)
Limitation
- ⚠️ Quarterly PAT declined (-15.7%)
- ⚠️ P/B ratio (~7.3) is relatively high
- ⚠️ PEG ratio of 1.58 signals costly growth
- ⚠️ EPS growth volatility
Company Negative News
- 📉 Decline in FII holdings (-0.30%)
- 📉 Quarterly profit drop from ₹274 Cr. to ₹192 Cr.
Company Positive News
- 📈 Increase in DII holdings (+0.76%)
- 📈 Strong efficiency metrics (ROE & ROCE)
Industry
- 🏦 Industry PE at 30.2, aligned with ABSLAMC’s valuation
- 📊 Asset management sector benefits from rising retail participation in mutual funds
Conclusion
🔎 ABSLAMC is fundamentally strong with excellent return metrics, low leverage, and fair valuation. Entry is advisable near ₹900–950. Long-term holding is favorable given strong fundamentals and industry demand, though investors should monitor profit volatility closely.
Would you like me to also prepare a side-by-side comparison of ABSLAMC vs asset management peers to highlight its relative positioning?