ABSLAMC - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.0

Let’s break down Aditya Birla Sun Life AMC (ABSLAMC) — a high-return asset manager with solid fundamentals, trading near peak but still on institutional radar.

📈 Core Financials & Profitability

ROCE: 35.5%, ROE: 27.0% — exceptionally strong, reflecting high efficiency and capital productivity.

EPS: ₹33.7 and PAT Qtr: ₹277 Cr — consistent growth with Qtr Profit Var: +17.6%, signaling margin improvement and expanding AUM.

Debt-to-Equity: 0.02 — virtually debt-free, enabling financial flexibility.

Dividend Yield: 2.75% — attractive, makes it appealing to income investors.

📊 Valuation Snapshot

Metric Value Interpretation

P/E Ratio 25.9 Fairly priced compared to Industry PE: 25.9

P/B Ratio ~6.78 Slightly high, but justified by superior ROE

PEG Ratio 2.27 ⚠️ Richly valued based on growth rate

Intrinsic Value Close to CMP Suggests no major undervaluation

🧠 Business Model & Strategic Moat

Operates in mutual fund management with a diverse and growing Asset Under Management (AUM) base.

Supported by Aditya Birla Group's financial ecosystem, gaining distribution depth and brand trust.

Benefits from long-term trends in retail investing, SIP growth, and regulatory encouragement of mutual funds.

Institutional activity

FII Hold ↑ +0.20%

DII Hold ↓ -0.12% — slight domestic trimming but not significant.

🔍 Technical & Market Behavior

RSI: 62.2 — nearing overbought zone, momentum strong but cautious entry advised.

MACD: 25.6 — bullish, confirms upward trend.

Price trading above DMA 50 & DMA 200, indicating strong support from technical levels.

52W Range: ₹556–₹912, CMP near 52W high — breakout possible, but retracement can’t be ruled out.

📍 Entry Zone & Long-Term View

Suggested Entry Zone: ₹820–₹855 — in case of short-term consolidation.

Long-Term Guidance

Solid candidate for long-term wealth creation.

Suits passive, income-focused portfolios with consistent earnings and dividend payout.

Monitor AUM growth, SIP traction, and regulatory reforms impacting AMC margins.

Need help positioning this in a diversified financial basket with other AMCs like Nippon India, HDFC AMC, or UTI? I’d be happy to chart out a comparative framework 📊📘.

Edit in a page