Check Before You Invest : Aditya Birla Capital Ltd

BSE: 540691 NSE: ABCAPITAL ISIN: INE674K01013

| Sector: BFSI | Industry: Finance - NBFC

Snapshot

Q.1 Which industry/sub-sector does Aditya Birla Capital Ltd belong to?

Aditya Birla Capital Ltd belongs to the BFSI sector, operating specifically within the Finance - NBFC segment.

Q.2 Is Aditya Birla Capital Ltd a good quality company?

Aditya Birla Capital Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Aditya Birla Capital Ltd undervalued or overvalued?

Aditya Birla Capital Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Aditya Birla Capital Ltd a good buy now?

Aditya Birla Capital Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of Aditya Birla Capital Ltd?

Aditya Birla Capital Ltd Operating Income growth is 19.59% for FY-2025, which is above its 5-year CAGR of 18.85%, indicating faster growth.

Q.2 Return on Assets of Aditya Birla Capital Ltd?

Aditya Birla Capital Ltd Return on Asset is 1.3%, which is in line with its 5-year historical median of 1.3%, indicating stable earnings on assets.

	Current Level	5-year Historic Median
NPM%	8.33	8.33
PPOP%	9.62	9.62
RoA%	1.3	1.3

Q.3 Return on Equity (ROE) of Aditya Birla Capital Ltd?

Aditya Birla Capital Ltd Return on Equity is 12% for FY-2025, which is in line with its 5-year historical median of 12%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Aditya Birla Capital Ltd?

Aditya Birla Capital Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 9.62% for FY-2025, which is in line with its 5-year median(9.62%), indicating stable margins.

Q.5 Net Profit Margin of Aditya Birla Capital Ltd?

Aditya Birla Capital Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 8.33% for FY-2025, which is in line with its 5-year median( 8.33%), indicating stable margins.

Q.6 Total Asset growth of Aditya Birla Capital Ltd?

Aditya Birla Capital Ltd Total Asset growth is 20.28% for FY-2025, which is above its 5-year CAGR of 19.66%, indicating faster growth.

Q.7 Capital Adequacy ratio of Aditya Birla Capital Ltd?

Aditya Birla Capital Ltd Capital Adequacy ratio (CAR) is 18.22% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Aditya Birla Capital Ltd?

Promoters hold 68.51% of the Aditya Birla Capital Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Aditya Birla Capital Ltd vs Industry Peers?

Aditya Birla Capital Ltd AUM CAGR is 19.66%, compared to the 5-year industry median CAGR of 15.99%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Aditya Birla Capital Ltd vs industry peers

Aditya Birla Capital Ltd profit metrics are below the industry median level of 10.14%, indicating weaker profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	8.33	15.4
PPOP%	9.62	12.76
RoA%	1.3	2.25

Q.3 Operating efficiency of Aditya Birla Capital Ltd vs industry peers?

Aditya Birla Capital Ltd ROCE (9.5) is above the industry median of (9.05); while the current ROE (12) are below than the 5-year average Industry ROE (12.85). This shows that the business is positioned in the middle quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	8.33	15.4
PPOP%	9.62	12.76
RoA%	1.3	2.25
ROCE%	9.5	9.05
ROE%	12	12.85

Valuation & price assessment

Q.1 Stock return of Aditya Birla Capital Ltd over the last decade?

Over the last 5 years, the stock has delivered a CAGR of 26.22% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	26.2%	29.6%	85%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	25.7	16.82	28.96
Price to Book	2.81	2.07	1.11
Price to Sales	4.39	3.57	9.10
EV to EBITDA	11.38	10.52	11.77

Q.4 Valuation ratios of Aditya Birla Capital Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 2.81% is higher than its historical median of 2.07%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Aditya Birla Capital Ltd return on invested capital (ROIC) is 6.56% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value erosion.

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