BSE:540691

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Aditya Birla Capital Limited, through its subsidiaries, provides various financial products and services in India and internationally. More Details


Snowflake Analysis

Mediocre balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Aditya Birla Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 540691 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.0%

540691

-0.9%

IN Diversified Financial

-1.6%

IN Market


1 Year Return

-22.0%

540691

-27.2%

IN Diversified Financial

-2.2%

IN Market

Return vs Industry: 540691 exceeded the Indian Diversified Financial industry which returned -27.3% over the past year.

Return vs Market: 540691 underperformed the Indian Market which returned -2.5% over the past year.


Shareholder returns

540691IndustryMarket
7 Day-6.0%-0.9%-1.6%
30 Day4.0%0.02%1.7%
90 Day19.7%3.9%6.2%
1 Year-22.0%-22.0%-24.5%-27.2%-0.4%-2.2%
3 Year-66.6%-66.6%-47.4%-51.1%-4.4%-9.0%
5 Yearn/a5.0%-12.4%40.4%29.8%

Price Volatility Vs. Market

How volatile is Aditya Birla Capital's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Aditya Birla Capital undervalued compared to its fair value and its price relative to the market?

17.68x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 540691 (₹64.75) is trading above our estimate of fair value (₹2.95)

Significantly Below Fair Value: 540691 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 540691 is poor value based on its PE Ratio (17.7x) compared to the IN Diversified Financial industry average (10.9x).

PE vs Market: 540691 is poor value based on its PE Ratio (17.7x) compared to the Indian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: 540691 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 540691 is overvalued based on its PB Ratio (1.2x) compared to the IN Diversified Financial industry average (0.5x).


Next Steps

Future Growth

How is Aditya Birla Capital forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

25.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540691's forecast earnings growth (25.6% per year) is above the savings rate (7.2%).

Earnings vs Market: 540691's earnings (25.6% per year) are forecast to grow slower than the Indian market (25.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 540691's revenue (9.7% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: 540691's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 540691's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Aditya Birla Capital performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540691 has high quality earnings.

Growing Profit Margin: 540691's current net profit margins (6.7%) are lower than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: 540691's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: 540691's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 540691 had negative earnings growth (-8.7%) over the past year, making it difficult to compare to the Diversified Financial industry average (-3.9%).


Return on Equity

High ROE: 540691's Return on Equity (5.7%) is considered low.


Next Steps

Financial Health

How is Aditya Birla Capital's financial position?


Financial Position Analysis

Short Term Liabilities: 540691's short term assets (₹994.6B) exceed its short term liabilities (₹186.0B).

Long Term Liabilities: 540691's short term assets (₹994.6B) exceed its long term liabilities (₹812.7B).


Debt to Equity History and Analysis

Debt Level: 540691's debt to equity ratio (400%) is considered high.

Reducing Debt: 540691's debt to equity ratio has reduced from 421.2% to 400% over the past 5 years.

Debt Coverage: 540691's debt is not well covered by operating cash flow (7.5%).

Interest Coverage: Insufficient data to determine if 540691's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Aditya Birla Capital current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 540691's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 540691's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 540691's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 540691's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 540691's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.0yrs

Average management tenure


CEO

Ajay Srinivasan (57 yo)

13.25yrs

Tenure

₹282,200,000

Compensation

Mr. Ajay Srinivasan has been the Chief Executive Officer of Aditya Birla Capital Limited since July 2007. Mr. Srinivasan serves as Chief Executive Officer of Financial Services at Grasim Industries Limited ...


CEO Compensation Analysis

Compensation vs Market: Ajay's total compensation ($USD3.79M) is above average for companies of similar size in the Indian market ($USD595.67K).

Compensation vs Earnings: Ajay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ajay Srinivasan
Chief Executive Officer13.25yrs₹282.20m0.018%
₹ 28.3m
Pinky Mehta
Chief Financial Officer3.25yrs₹26.20m0.0021%
₹ 3.4m
Sailesh Daga
Compliance Officer & Company Secretaryno data₹9.90m0%
₹ 0
Mukesh Malik
Chief Operating Officerno datano data0.0083%
₹ 13.0m
Anantha Dhananjaya
Chief Compliance & Risk Officerno datano datano data
Ajay Kakar
Chief Marketing Officerno datano datano data
Subhro Bhaduri
Chief Human Resource Officer6.75yrsno datano data
Pramo Selvaratnam
President of Strategy & Business Developmentno datano datano data
Poonam Thakkar
Head of Analytics & Digital Communications L&Dno datano datano data
Rakesh Singh
MD & CEO of Aditya Birla Finance Limited9.25yrsno data0.0079%
₹ 12.4m
Tushar Shah
Chief Executive Officer of Infrastructure & Structured Finance of Aditya Birla Finance Limitedno datano data0.00066%
₹ 1.0m
A. Balasubramanian
CEO & MD of Aditya Birla Sun Life AMC Limitedno datano data0.0059%
₹ 9.2m

8.0yrs

Average Tenure

55yo

Average Age

Experienced Management: 540691's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Puranam Ravikumar
Independent Director3.33yrs₹430.00k0.000060%
₹ 94.4k
Kumar Birla
Chairman of the Boardno datano data0.044%
₹ 68.6m
Arun Adhikari
Independent Director3.33yrs₹430.00kno data
Santrupt Misra
Non-Executive Director0.75yrno datano data
Vijayalakshmi Iyer
Independent Director3.33yrs₹295.00k0.000080%
₹ 125.8k
Subhash Bhargava
Independent Director4.08yrs₹420.00kno data
Sushil Agarwal
Non-Executive Non-Independent Director3yrsno data0.0020%
₹ 3.2m

3.3yrs

Average Tenure

65yo

Average Age

Experienced Board: 540691's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 540691 insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.4%.


Top Shareholders

Company Information

Aditya Birla Capital Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aditya Birla Capital Limited
  • Ticker: 540691
  • Exchange: BSE
  • Founded: 2007
  • Industry: Other Diversified Financial Services
  • Sector: Diversified Financials
  • Market Cap: ₹157.307b
  • Shares outstanding: 2.41b
  • Website: https://www.adityabirlacapital.com

Number of Employees


Location

  • Aditya Birla Capital Limited
  • One Indiabulls Centre
  • Tower 1,18th Floor
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABCAPITALNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2017
540691BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2017
165610997BDL (Bourse de Luxembourg)SPON GDR EACH REP 1 ORD SHSLUUSDSep 2017

Biography

Aditya Birla Capital Limited, through its subsidiaries, provides various financial products and services in India and internationally. It offers life insurance products, such as protection, wealth with pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 13:00
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.