Check Before You Invest : Aditya Birla Sun Life AMC Ltd

Snapshot

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

Aditya Birla Sun Life AMC Ltd belongs to the BFSI sector, operating specifically within the Finance - Asset Management segment.

Q.2 Is Aditya Birla Sun Life AMC Ltd a good quality company?

Aditya Birla Sun Life AMC Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Aditya Birla Sun Life AMC Ltd undervalued or overvalued?

Aditya Birla Sun Life AMC Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Aditya Birla Sun Life AMC Ltd a good buy now?

Aditya Birla Sun Life AMC 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 Revenue growth of Aditya Birla Sun Life AMC Ltd?

Aditya Birla Sun Life AMC Ltd revenue growth is 24.7% for FY-2025, which is above its 5-year CAGR of 6.45%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Aditya Birla Sun Life AMC Ltd?

Aditya Birla Sun Life AMC Ltd Return on capital employed is 36.3% for FY-2025, which is in line with its 5-year historical median of 36.3%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Aditya Birla Sun Life AMC Ltd?

Aditya Birla Sun Life AMC Ltd Return on Asset is 24.4%, which is in line with its 5-year historical median of 24.7%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Aditya Birla Sun Life AMC Ltd?

Aditya Birla Sun Life AMC Ltd Return on equity is 27.7% for FY-2025, which is in line with its 5-year historical median of 28.2%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Aditya Birla Sun Life AMC Ltd?

Aditya Birla Sun Life AMC Ltd Cash conversion cycle is -33 days, in line with its 5-year historical median of -31 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.44	0.46
ROE	27.7	28.2
ROCE	36.3	36.3
Cash Conversion Cycle	-33 days	-31 days

Q.6 Gross Profit margin of Aditya Birla Sun Life AMC Ltd?

Aditya Birla Sun Life AMC Ltd Gross profit margin which is the profit after deduction of direct costs, is 77% for FY-2025, which is above its 5-year median of 72.6%, indicating increasing margins.

Q.7 Operating Profit Margin of Aditya Birla Sun Life AMC Ltd?

Aditya Birla Sun Life AMC Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 59.28% for FY-2025, which is in line with its 5-year median of 58.03% indicating stable margins.

Q.8 Net Profit Margin of Aditya Birla Sun Life AMC Ltd?

Aditya Birla Sun Life AMC Ltd Net Profit Margin is 55.74% for FY-2025, is above with its 5-year median of 52.27%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	77	72.6
Operating Profit Margin	59.28	58.03
Net Profit Margin	55.74	52.27

Q.9 Debt to Equity ratio of Aditya Birla Sun Life AMC Ltd?

Aditya Birla Sun Life AMC Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Aditya Birla Sun Life AMC Ltd?

Aditya Birla Sun Life AMC Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Aditya Birla Sun Life AMC Ltd?

Promoters hold 74.82% of the Aditya Birla Sun Life AMC Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Aditya Birla Sun Life AMC Ltd vs industry peers?

Aditya Birla Sun Life AMC Ltd revenue CAGR is 6.45%, compared to the industry median CAGR of 37.3%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	24.7	37.3
Gross Profit Growth	23.3	42.2
Operating Profit Growth	30.2	18.7
Net Profit Growth	19.5	49

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.44	0.38
ROE	27.7	16.4
ROCE	36.3	19.35
Cash Conversion Cycle (days)	-33.28	1

Valuation & price assessment

Q.1 Stock return of Aditya Birla Sun Life AMC Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 42.41% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	42.4%	54.4%

Q.3 Valuation ratios of Aditya Birla Sun Life AMC Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	29.78	21.45	33.19
Price to Book	7.31	5.39	5.67
Price to Sales	16.03	11.76	22.04
EV to EBITDA	22.06	15.57	23.11

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