BSE:540691

Stock Analysis Report

Executive Summary

Aditya Birla Capital Limited provides various financial products and services in India.

Snowflake

Fundamentals

High growth potential and overvalued.


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


Market Performance


7 Day Return

1.1%

540691

5.5%

IN Diversified Financial

3.9%

IN Market


1 Year Return

-22.5%

540691

3.5%

IN Diversified Financial

6.0%

IN Market

Return vs Industry: 540691 underperformed the Indian Diversified Financial industry which returned 3.5% over the past year.

Return vs Market: 540691 underperformed the Indian Market which returned 6% over the past year.


Shareholder returns

540691IndustryMarket
7 Day1.1%5.5%3.9%
30 Day-10.8%2.0%7.8%
90 Day-8.8%-8.7%2.5%
1 Year-22.5%-22.5%5.7%3.5%8.2%6.0%
3 Yearn/a2.8%-5.7%23.0%16.7%
5 Yearn/a21.4%-5.6%43.5%30.0%

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?

18.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 540691 (₹79.5) is trading above our estimate of fair value (₹16.32)

Significantly Undervalued: 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 (18.9x) compared to the Diversified Financial industry average (17x).

PE vs Market: 540691 is poor value based on its PE Ratio (18.9x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low 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 (1.8x) 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 7 analysts?

26.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 540691's forecast earnings growth (26.8% per year) is above the savings rate (7.6%).

Earnings vs Market: 540691's earnings (26.8% per year) are forecast to grow faster than the Indian market (18.2% per year).

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

Revenue vs Market: 540691's revenue (24% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: 540691's revenue (24% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 540691's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

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

25.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 540691's earnings have grown significantly by 25% per year over the past 5 years.

Accelerating Growth: 540691's earnings growth over the past year (6.9%) is below its 5-year average (25% per year).

Earnings vs Industry: 540691 earnings growth over the past year (6.9%) underperformed the Diversified Financial industry 13.6%.


Return on Equity

High ROE: 540691's Return on Equity (8.2%) is considered low.


Return on Assets

ROA vs Industry: 540691's Return on Assets is below or equal to the Diversified Financial industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate 540691's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Aditya Birla Capital's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 540691 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 540691's debt is covered by short term assets (assets are 1.786680x debt).


Financial Institutions Analysis

Asset Level: 540691's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if 540691 has a sufficient allowance for bad loans.

Low Risk Liabilities: 540691 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 540691 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 540691 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 540691 has an appropriate level of bad loans.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.4%industryaverage3.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Aditya Birla Capital's salary, the management and board of directors tenure and is there insider trading?

7.0yrs

Average management tenure


CEO

Ajay Srinivasan (56yo)

12.3yrs

Tenure

₹352,700,000

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: Insufficient data to establish whether Ajay's total compensation is reasonable compared to companies of similar size in the Indian market.

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


Management Age and Tenure

7.0yrs

Average Tenure

Experienced Management: 540691's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

64yo

Average Age

Experienced Board: 540691's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: 540691 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹1,947,15413 Sep 19
Krishna Maheshwari
EntityIndividual
Shares20,000
Max Price₹97.36
Sell₹449,50023 Aug 19
Krishna Maheshwari
EntityIndividual
Shares5,000
Max Price₹89.90
Sell₹4,833,49116 Aug 19
Krishna Maheshwari
EntityIndividual
Shares55,000
Max Price₹88.17

Ownership Breakdown


Management Team

  • Rakesh Singh

    Chief Executive Officer of Aditya Birla Finance Limited

    • Tenure: 8.3yrs
  • Ajay Srinivasan (56yo)

    Chief Executive Officer

    • Tenure: 12.3yrs
    • Compensation: ₹352.70m
  • Ajay Kakar

    Chief Marketing Officer

    • Tenure: 0yrs
  • Subhro Bhaduri

    Chief Human Resource Officer

    • Tenure: 5.8yrs
  • Anantha Dhananjaya

    Chief Compliance & Risk Officer

    • Tenure: 0yrs
  • Pinky Mehta (52yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: ₹21.80m
  • Poonam Thakkar

    Head of Analytics & Digital Communications L&D

    • Tenure: 0yrs
  • Sailesh Daga

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹9.30m
  • Mukesh Malik

    Chief Operating Officer

    • Tenure: 0yrs
  • Pramo Selvaratnam

    President of Strategy & Business Development

    • Tenure: 0yrs

Board Members

  • Puranam Ravikumar (68yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹385.00k
  • Kumar Birla (52yo)

    Chairman of the Board

    • Tenure: 0yrs
  • Arun Adhikari (65yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹350.00k
  • Santrupt Misra (53yo)

    Non-Executive Director

    • Tenure: 2yrs
  • Vijayalakshmi Iyer (64yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: ₹470.00k
  • Subhash Bhargava (74yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: ₹440.00k
  • Sushil Agarwal (56yo)

    Non-Executive Director

    • Tenure: 2yrs

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: ₹175.103b
  • Shares outstanding: 2.20b
  • 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)SPONSORED GDRLUUSDSep 2017

Biography

Aditya Birla Capital Limited provides various financial products and services in India. It offers life insurance products, such as protection, wealth and protection, children’s future, health, retirement,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:59
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.