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Aditya Birla Nuvo Ltd. - (Amalgamated) Stock Analysis

Large Cap
Evaluated by 2074 users | BSE: 500303 | NSE: ABIRLANUVO |
Diversified
Aditya Birla Nuvo, an AV Birla Group company traces its origin to a modest beginning with the acquisition of Indian Rayon Corporation Limited, a viscose filament yarn manufacturing unit, in 1963. Aditya Birla Nuvo is now a diversified conglomerate and the platform that has launched many new...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Aditya Birla Nuvo Ltd. - (Amalgamated) has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16
Return on Capital Employed 7.28%5.94%4.37%6.05%6.69%6.42%6.5%6.5%5.77%4.15%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3,4203,9534,7864,8276,4478,4339,7558,0218,9385,466
Y-o-Y Gr. Rt.-15.6%21.1%0.9%33.6%30.8%15.7%-17.8%11.4%-38.8%
Adjusted EPS (Rs.) 23.2724.6813.9626.9932.8333.535.2741.8438.6524
Y-o-Y Gr. Rt.-6.1%-43.4%93.3%21.6%2%5.3%18.6%-7.6%-37.9%
Book Value per Share (Rs.) 334.86383.71393.88438.52475.42499.85551.2622.97654.09656.52
Adjusted Net Profit 217234133278373380424544503313
Net Op. Cash Flow (Rs. Cr.) 4962794441,0693404071.2988788634
Debt to Cash Flow from Ops 5.719.8410.123.49.6711.223,404.393.84.686.16
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Aditya Birla Nuvo Ltd. - (Amalgamated) should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 5.4%-3.3%-17.6%-38.8%
Adjusted EPS 0.3%-6.1%-12%-37.9%
Book Value per Share 7.86.760.4
Share Price -2.2% -18.8% -26.4% -60.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16
Return on Equity (%) 8.156.563.266.337.416.876.777.286.053.66
Operating Profit Margin (%) 15.9115.3111.515.8213.8610.359.5111.3311.4613.17
Net Profit Margin (%) 6.355.932.775.765.784.514.356.795.635.72
Debt to Equity 0.910.751.20.810.610.80.60.460.430.46
Working Capital Days 154151154161139149169207177263
Cash Conversion Cycle 71807968535669825288
Entity Percentage Holding
Promoters 62.73%
Institutions 21.30%
Non-Institutions 15.96%
Pledged *0.000.000.000.150.150.150.150.150.140.14
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Aditya Birla Nuvo(Am and arrived at the following conclusion:

Past 10 year's financial track record indicates that Aditya Birla Nuvo(Am is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Aditya Birla Nuvo(Am's performance infers:

Aditya Birla Nuvo(Am earnings have declined by -6.1%, whereas share price has depreciated -18.8% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Aditya Birla Nuvo(Am share prices over the last 10 years. Here is what we found out:

Aditya Birla Nuvo(Am share price has depreciated -1.6% annually over the past ten years.

Aditya Birla Nuvo, an AV Birla Group company traces its origin to a modest beginning with the acquisition of Indian Rayon Corporation Limited, a viscose filament yarn manufacturing unit, in 1963.

Aditya Birla Nuvo is now a diversified conglomerate and the platform that has launched many new businesses for India’s premier business house, the Aditya Birla Group. Aditya Birla Nuvo has a balanced portfolio of traditional and new age businesses under its fold, ranging from textiles to

Aditya Birla Nuvo, an AV Birla Group company traces its origin to a modest beginning with the acquisition of Indian Rayon Corporation Limited, a viscose filament yarn manufacturing unit, in 1963.

Aditya Birla Nuvo is now a diversified conglomerate and the platform that has launched many new businesses for India’s premier business house, the Aditya Birla Group. Aditya Birla Nuvo has a balanced portfolio of traditional and new age businesses under its fold, ranging from textiles to life insurance.

The Aditya Birla Group is in the league of Fortune 500. It is anchored by an extraordinary force of 130,000 employees, belonging to 25 different nationalities. In India, the Group has been adjudged 'The Best Employer in India and among the top 20 in Asia' by the Hewitt-Economic Times and Wall Street Journal Study 2007.

Over 50 per cent of the Group's revenues flow from its overseas operations. The Group operates in 25 countries: India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia and Korea.

The razor sharp focus on each business has made it a leading player in most segments, including viscose filament yarn, carbon black, branded garments, agri business, textiles and insulators. Over the past few years, Aditya Birla Nuvo, through its subsidiaries and joint ventures, has made successful forays into life insurance, telecom, business process outsourcing (BPO), IT services, asset management and financial services.

Powered by an intellectual capital of over 37,000 employees and an optimum mix of revenue and profit streams, the company is in a strong position to invest in high growth businesses to maximise long-term shareholder gains.

Business area of the company includes:

Viscose Filament Yarn - Indian Rayon - Indian Rayon, a major player in the Indian viscose filament yarn business, is the second largest producer of viscose filament yarn (VFY) in India with a 30 per cent domestic market share.

Garments - Madura Garments - Indian Rayon, a major player in the Indian viscose filament yarn business, is the second largest producer of viscose filament yarn (VFY) in India with a 30 per cent domestic market share.

Carbon Black - Hi-Tech Carbon - -Tech Carbon, the carbon black business of Aditya Birla Nuvo, is the second largest producer of Carbon Black in India, covering 33 per cent of the domestic market share.

Agri solutions - Indo Gulf Fertilisers – It is the first company to introduce the principles of Six Sigma in the agricultural fields, Indo Gulf aims at providing complete agri solutions to farmers with unique value-added products and services.

Textiles - Jaya Shree Textiles - A leading player in the domestic linen and worsted yarn segment, Jaya Shree Textiles has revolutionised the Indian textile market by popularising linen across a wide customer base with the brand Linen Club.

Insulators - Aditya Birla Insulators- Aditya Birla Insulators, India's largest manufacturer of high-performance insulators, has leveraged the power of reliability, to provide world-class insulating solutions to the power industry.

Joint ventures and subsidiaries:

  • Idea Cellular Limited, the fifth largest mobile telephony service provider in India
  • Birla Sun Life Insurance, one of the leading life insurance companies in India 
  • Birla Sun Life Asset Management, one of the leading asset management companies in India
  • Aditya Birla Minacs Worldwide Limited, among the top five BPO players in the country by revenue size.

Milestones:

1956 to 1966: Aditya Birla Nuvo traces its origins to a modest beginning with the acquisition of Indian RayonCorporation Limited, a viscose filament yarn manufacturing unit, in 1963.

1976 to 1988: This period saw the diversification of the company to include businesses like textiles, insulators,cement and carbon black. The company is renamed as Indian Rayon and Industries Limited.

1998 to 2004: The journey continues - the company goes through a spate of acquisitions and joint ventures tobring into its fold new businesses like garments, life insurance, IT services, BPO and insulators.

2005 to 2007: Indian Rayon's new identity as Aditya Birla Nuvo marks the transformation of a manufacturingcompany into a premium conglomerate with diversified businesses. Its tagline of strong foundation, energised growth reflects the company's thrust on growth and creation of value.

2008: Promoter infused Rs 341.30 crore on conversion of 17 lakh warrants and Rs 377.40 crore as 10 percent application money on 1.88 crore warrants in March 2008.

2009: Acquired 76 percent stake in Apollo Sindhoori, a retail broking firm, for Rs 251.60 crore in Feb- Mar 2009.

2009: Acquired balance 50 percent stake in Birla Sunlife Distribution for Rs 7.60 crore in March 2009.

2010: Greenfield carbon capacity expansion from 230,000 mtpa to over 3 lakh mtpa at Patalganga.

2011: Aditya Birla Nuvo’s subsidiary Aditya Birla Minacs, a global business solutions provider has opened its second delivery centre at Makati City in the Philippines.

Achievements/ recognition:

  • Aditya Birla Nuvo won the most admired company of the year at Clothing Manufacturers Association Of India (CMAI) Awards 2008 under domestic category.
  • In the carbon black segment it was awarded TPM Excellence award (II Category) from JIPM, Japan.
  • Aditya Birla Insulators won the Golden Peacock National Quality Award in the manufacturing category.
  • In the textiles segment it received the first prize by the Government of India for best energy conservation measures.
  • In the BPO segment it was awarded Innovation Award by CIO magazine 2007.

As a leading player, Aditya Birla Nuvo ranks as: 

  • India's second largest producer of viscose filament yarn (VFY) 
  • The country's largest premium branded apparel company 
  • The second largest producer of carbon black in India
  • Largest manufacturer of linen fabric in India 
  • Among the most energy efficient fertiliser plants
  • India’s largest and the world’s fourth largest producer of insulators.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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