Aditya Birla Cap (ABCAPITAL)
CyclicalFairStock Score: 60/100 — STEADY
Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹401 |
| Market Cap | ₹1,09,720.04 Cr |
| P/E Ratio | 25.9 |
| ROCE | 9.33% |
| ROE | 11.52% |
| Dividend Yield | 0% |
| Profit Growth | 32.17% |
| Debt/Equity | 4.96 |
| Sales Growth | 23.73% |
| Free Cash Flow | ₹-27,002 Cr |
| Promoter Holding | 68.57% |
| 52-Week Range | ₹277.7 — ₹430.55 |
| Sector | Finance |
| Book Value | ₹131.41 |
Strengths
- Promoter holding of 68.57% provides alignment and stability.
- Sales growth of 13.05% with latest quarter revenue of ₹11,952 Cr shows business momentum.
- Piotroski F-Score of 7/9 suggests reasonably sound fundamentals.
- Book value of ₹116.03 and ROE of 11.52% provide some earnings power.
Concerns
- Profit growth declined 5.74% despite sales growth, indicating margin or provisioning pressure.
- Debt/equity of 4.61 and Altman Z-Score of 0.65 raise financial stress concerns.
- P/E of 25.42 and P/B of 3.01 leave no margin of safety versus Graham Number of ₹190.77.
- Negative free cash flow of ₹-27,002 Cr and zero dividend yield mean no cash return while waiting.
AI Analysis
Aditya Birla Capital is a large financial house with promoter holding of 68.57%; that gives stability and a brand moat. But I judge numbers, not promises. Sales grew 13.05% to ₹11,952 Cr in the latest quarter, yet profit fell 5.74% with net profit at ₹966 Cr. ROE of 11.52% and ROCE of 9.33% are acceptable but not exceptional. This is a leveraged business—debt to equity of 4.61 is high, and the Altman Z-Score of 0.65 is a warning flag, though I know such ratios are awkward for financial firms. Free cash flow is deeply negative at ₹-27,002 Cr; this is a capital-hungry model, and the zero dividend yield means the shareholder gets no cash while waiting. The Piotroski score of 7/9 suggests operations are not deteriorating badly, but I am a value buyer. At ₹349.70, the stock trades at a P/E of 25.42 and P/B of 3.01. Graham Number, a conservative anchor, is ₹190.77, so the margin of safety is negative 80.56%. With FairStock Score at 49/100, the verdict is MIXED. I like the parentage; I respect the franchise; but I cannot pay rich multiples for cyclical leverage and falling earnings. In Graham's language, the price is set by a voting machine, not a weighing machine. I need a bigger cushion. I would wait for a better price or evidence of profit recovery and deleveraging.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer