ABSLAMC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | ABSLAMC | Market Cap | 29,349 Cr. | Current Price | 1,015 ₹ | High / Low | 1,099 ₹ |
| Stock P/E | 29.7 | Book Value | 139 ₹ | Dividend Yield | 2.36 % | ROCE | 32.7 % |
| ROE | 25.6 % | Face Value | 5.00 ₹ | DMA 50 | 959 ₹ | DMA 200 | 852 ₹ |
| Chg in FII Hold | -0.30 % | Chg in DII Hold | 0.76 % | PAT Qtr | 192 Cr. | PAT Prev Qtr | 274 Cr. |
| RSI | 52.9 | MACD | 30.1 | Volume | 2,54,539 | Avg Vol 1Wk | 7,21,271 |
| Low price | 612 ₹ | High price | 1,099 ₹ | PEG Ratio | 1.59 | Debt to equity | 0.02 |
| 52w Index | 82.8 % | Qtr Profit Var | -15.7 % | EPS | 34.1 ₹ | Industry PE | 31.6 |
📈 Positive
- Market capitalization of ₹29,349 Cr. provides scale in asset management.
- Strong ROCE (32.7%) and ROE (25.6%) highlight excellent efficiency.
- EPS of ₹34.1 supports earnings visibility.
- Dividend yield of 2.36% offers stable income support.
- Debt-to-equity ratio of 0.02 indicates negligible leverage risk.
- Stock trading above DMA 50 (₹959) and DMA 200 (₹852), confirming bullish momentum.
- DII holdings increased (+0.76%), reflecting domestic institutional confidence.
⚠️ Limitation
- P/E ratio of 29.7 vs industry average of 31.6 indicates fair valuation, not cheap.
- Quarterly PAT declined (₹192 Cr. vs ₹274 Cr.), showing earnings pressure (-15.7%).
- RSI at 52.9 suggests moderate momentum.
- MACD at 30.1 indicates only modest bullish strength.
- FII holdings reduced (-0.30%), showing weaker foreign investor sentiment.
- Volume (2.54 lakh) below weekly average (7.21 lakh), highlighting weaker liquidity.
🚨 Company Negative News
- Declining quarterly profits raise caution.
- Weak liquidity compared to average volumes.
- Reduced foreign institutional participation.
🌟 Company Positive News
- Strong fundamentals with high ROCE and ROE.
- Dividend yield provides stability for long-term investors.
- Technical support from DMA levels.
- Domestic institutional inflows add confidence.
🏭 Industry
- Industry P/E of 31.6 shows sector stability.
- ABSLAMC trading close to industry average valuation.
- Asset management sector outlook remains positive, supported by rising retail participation in mutual funds.
📝 Conclusion
ABSLAMC is a fundamentally strong candidate with excellent efficiency metrics, low leverage, and stable dividend yield. However, declining profits and weak liquidity limit near-term upside.
🔑 **Entry Zone:** ₹980–₹1,020, closer to DMA support and valuation comfort.
📌 **Long-term Holding Guidance:** Suitable for long-term holding (3–5 years) given strong fundamentals and dividend support. Risk lies in profit volatility and reduced foreign inflows; maintain strict stop-loss around ₹965.
This frames ABSLAMC as a fundamentally strong but liquidity-sensitive candidate, ideal for long-term investors with disciplined entry and exit management. Would you like me to extend this into a peer benchmarking overlay (ABSLAMC vs HDFC AMC, Nippon Life AMC, and UTI AMC) to highlight relative valuation and efficiency gaps?