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ABSLAMC - Fundamental Analysis: Financial Health & Valuation

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Rating: 3.6

Last Updated Time : 19 Mar 26, 07:09 pm

Fundamental Rating: 3.6

Stock Code ABSLAMC Market Cap 27,966 Cr. Current Price 968 ₹ High / Low 1,047 ₹
Stock P/E 27.3 Book Value 123 ₹ Dividend Yield 2.48 % ROCE 35.5 %
ROE 27.0 % Face Value 5.00 ₹ DMA 50 876 ₹ DMA 200 809 ₹
Chg in FII Hold -0.13 % Chg in DII Hold 0.49 % PAT Qtr 274 Cr. PAT Prev Qtr 245 Cr.
RSI 59.8 MACD 31.6 Volume 5,58,702 Avg Vol 1Wk 8,41,116
Low price 556 ₹ High price 1,047 ₹ PEG Ratio 2.30 Debt to equity 0.02
52w Index 84.0 % Qtr Profit Var 23.4 % EPS 35.4 ₹ Industry PE 27.5

📊 Core Financials

  • Profitability: PAT improved from ₹245 Cr. to ₹274 Cr. (Qtr Profit Var: +23.4%)
  • Margins: ROE at 27.0% and ROCE at 35.5% indicate strong efficiency
  • Debt: Debt-to-equity ratio at 0.02 shows negligible leverage
  • Cash Flow: EPS at ₹35.4 reflects solid earnings

💰 Valuation Indicators

  • P/E Ratio: 27.3 vs Industry PE of 27.5 → fairly valued
  • P/B Ratio: Current Price ₹968 vs Book Value ₹123 → ~7.9x book
  • PEG Ratio: 2.30 → growth priced at a premium
  • Intrinsic Value: Valuation supported by strong fundamentals but slightly expensive

🏢 Business Model & Health

  • Market Cap: ₹27,966 Cr. reflects strong presence in asset management
  • Dividend Yield: 2.48% provides healthy shareholder return
  • Competitive Advantage: Established brand in mutual funds and asset management
  • Overall Health: Strong profitability, low debt, and fair valuation

🎯 Entry Zone & Long-Term Guidance

  • Entry Zone: Attractive near ₹900–940 for accumulation
  • Long-Term Holding: Suitable for long-term investors given strong fundamentals and dividend yield

✅ Positive

  • Strong ROE (27.0%) and ROCE (35.5%)
  • Negligible debt-to-equity ratio (0.02)
  • Healthy dividend yield (2.48%)

⚠️ Limitation

  • P/B ratio ~7.9x indicates premium valuation
  • PEG ratio (2.30) suggests growth priced at a premium
  • FII holding decreased (-0.13%)

📉 Company Negative News

  • FII holding decreased (-0.13%)
  • Stock trading slightly above DMA levels (50DMA ₹876, 200DMA ₹809), indicating limited upside

📈 Company Positive News

  • Quarterly PAT rose to ₹274 Cr. (+23.4%)
  • DII holding increased (+0.49%)

🏭 Industry

  • Industry PE: 27.5, in line with ABSLAMC’s PE
  • Asset management sector benefits from rising retail participation in mutual funds

🔎 Conclusion

ABSLAMC demonstrates strong profitability, efficiency, and negligible debt, making it a fundamentally sound company.

Valuations are fair but slightly premium compared to book value.

With a healthy dividend yield and rising domestic institutional interest, the stock is suitable for long-term holding, with entry recommended near ₹900–940 to optimize risk-reward balance.

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