Introduction
In this blog post, we will analyze Aditya Birla Capital Limited and explore its entry point and potential for multi-bagger returns in the next five to ten years. Aditya Birla Capital Limited is a holding company that operates in the financial services business. It falls under the Aditya Birla Group, and its segments include lending, insurance, and asset management. The company’s holdings include Aditya Birla Finance, Aditya Birla Housing Finance, Aditya Birla Sun Life Insurance, Aditya Birla Sun Life AMC, and Aditya Birla Health Insurance. Its market capitalization is approximately INR 43,000 crores.
Business Segments
Aditya Birla Capital Limited operates in various segments, including lending, insurance, and asset management. Under the lending segment, it provides loans to individuals and businesses. The insurance segment offers life insurance and health insurance products. The asset management segment deals with mutual funds and asset management services.
Financial Statistics
- Market Capitalization: INR 42,958 crores
- Stock P/E: 16
- Industry P/E: 21.5
- Return on Equity: 11.4%
- Return on Assets: 3%
- EBITDA: INR 13.9 billion
- Debt: INR 9,910 crores
- Debt to Equity: 4.01
- P/B Ratio: 0.3
Stock Analysis
Based on the stock’s current price, the company is considered undervalued. The face value of the stock is INR 10, and the promoter holding is 69%. The company has a profit growth of 39.2% and an intrinsic value of INR 30. The current price offers a good buying opportunity, with an AI holding of 10.5%. Looking at the stock’s chart pattern, it has been trading around INR 10 and has formed support at its previous high. This presents an entry point for investors, and if the support is broken, it can create a favorable area for further buying between INR 1,166 and INR 16,162.
Holding Pattern
Examining the company’s shareholding pattern, it can be seen that there was a slight increase in holding until March 2023. However, in the second quarter of 2023, there was a slight decrease, followed by another decrease in the quarter ending September. The retail holding has reduced from the level of AI commitment. This indicates that there is a fresh buying opportunity, and good returns can be expected from here.
Potential for Multi-Bagger Returns
Aditya Birla Capital Limited has the potential to grow in all its segments, including AMC, mutual funds, and insurance. Based on this potential, the company can move from mid-cap to large-cap, with a market capitalization of INR 2 to 5 lakh crores. If you invest in this company at the entry point mentioned earlier and hold it for at least five years, you can expect returns of up to three times your investment.
Thank you for reading this analysis of Aditya Birla Capital Limited. Investing in this company can potentially provide you with multi-bagger returns.
Disclaimer: The information is only for information purpose only. It is always recommended to consult with certified financial experts before making any investment decisions. Follow busymoneyfreak.com