Adit.Birla Money (BIRLAMONEY)
CyclicalFairStock Score: 33/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹131.88 |
| Market Cap | ₹745.24 Cr |
| P/E Ratio | 13.74 |
| ROCE | 13.06% |
| ROE | 23.85% |
| Dividend Yield | 0% |
| Profit Growth | -27.6% |
| Debt/Equity | 7.35 |
| Sales Growth | 8% |
| Promoter Holding | 73.53% |
| 52-Week Range | ₹95 — ₹188.85 |
| Sector | Capital Markets |
| Book Value | ₹53.13 |
Strengths
- Promoter holding of 73.53% gives strong ownership alignment
- Sales growth of 12.78%, with latest quarter sales at ₹120 Cr
- P/E of 14.30 is reasonable if earnings stabilize
- Reported ROE of 23.85% shows past shareholder return generation
- Price is well off the 52-week high of ₹197.39, offering some correction
Concerns
- Debt/Equity of 7.35 is extremely high and makes the balance sheet fragile
- Profit growth is down 23.75%, indicating margin compression despite revenue growth
- Piotroski F-Score of 4/9 points to weak financial health
- Zero dividend yield and P/B of 4.04 offer no income support or valuation cushion
AI Analysis
Let me start with what I like. This is a stockbroking business with a trusted brand and a promoter who owns 73.53%, so interests are reasonably aligned. Sales grew 12.78% to ₹120 Cr in the latest quarter, and net profit of ₹14 Cr gives a P/E of 14.30. That is not an expensive price if the business can compound. But I have to stop and look at the quality of earnings. Profit growth is down 23.75% despite rising sales—that tells me margins are under pressure, and in broking that pressure is normal because trading volumes and client activity are cyclical. The balance sheet is a real concern. Debt/equity of 7.35 is far too high for my comfort. I know broking firms often carry leverage for margin funding, but this level means the reported ROE of 23.85% is borrowed. ROCE is only 13.06%, so the underlying return on capital is much lower. Book value is ₹36.50; at ₹147.41 the stock trades at 4.04 times book. That is not a value price. With zero dividend yield and a Piotroski score of 4/9, I see no margin of safety. The 52-week range of ₹95.00 to ₹197.39 shows how volatile this business is. I would rather wait for a better price, lower leverage, or proof that profits can follow sales growth. This is a cyclical, not a compounder.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer