AIIL - Fundamental Analysis: Financial Health & Valuation

📈 Positive

• High ROE of 34.1% and ROCE of 30.8% — indicates excellent capital efficiency.
• Low P/E of 12.1 vs industry average of 22.6 — suggests undervaluation.
• PEG ratio of 0.14 — implies strong earnings growth relative to price.
• Debt-to-equity ratio of 0.06 — reflects conservative financial structure.
• EPS of ₹241 — robust earnings per share supports valuation.
• Strong FII interest with a 6.17% increase — signals institutional confidence.

⚠️ Limitation

• Quarterly profit decline of 13.9% — short-term earnings volatility.
• MACD at -34.4 and RSI at 35.0 — bearish technical indicators.
• Dividend yield of 0.03% — minimal income for yield-focused investors.
• Trading below DMA 50 — signals short-term weakness.
• Volume below average — reduced market activity.

📉 Company Negative News

• Q2 PAT dropped to ₹941 Cr from ₹1,766 Cr — sharp sequential decline.
• Bearish momentum with RSI and MACD suggesting continued pressure.

📢 Company Positive News

• Stock delivered 4069% return over 5 years with 88.3% profit margin

  stockpricearchive.com

  .

• Board approved 20% stake sale in Billion Dream Sports — strategic monetization move

  Stock Analysis

  .

• Annual gain of 164% and recent 26% bounce — strong investor interest

  Simply Wall St

  .

🏭 Industry

• Financial services sector remains attractive with rising retail participation and digital transformation.
• Industry P/E of 22.6 — AIIL trades at a significant discount.
• Low beta of -0.82 — defensive characteristics in volatile markets.

🧾 Conclusion

• Business Model: Diversified financial services with high-margin operations and strategic investments.
• Competitive Advantage: Strong profitability, low debt, and institutional backing.
• Entry Zone: ₹2,700–₹2,850 — near DMA 200 and technical support.
• Long-Term Holding: Highly suitable for growth-oriented investors with a 3–5 year horizon.