Aditya Birla Capital Ltd. (ABCAPITAL) AI Stock Analysis

• Market Cap: ₹866.48B
• Dividend Yield: N/A
• Average Volume (3M): 232.64K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 1.43
• Revenue Growth: 7.07%
• EPS Growth: -13.03%
• Country: IN
• Employees: 59,000
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Conglomerates
• EPS (TTM): 3.50
• Shares Outstanding: 2,612,629,600
• 10 Day Avg. Volume: 170,898
• 30 Day Avg. Volume: 232,642
• PEG Ratio: -7.58
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 1.18
• P/FCF Ratio: -1.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹342.00
• Price Target Upside: -4.46% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: ₹368.00 ▲(2.81% Upside)

Aditya Birla Capital Ltd. shows strong technical momentum, which is the most significant positive factor. However, financial performance is a concern due to high leverage and negative cash flows, which weigh down the overall score. The valuation is moderate, with a high P/E ratio and no dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and sustain its business operations over time.

Gross Profit Margin

A high gross profit margin suggests effective cost management and pricing power, contributing to long-term profitability.

Business Diversification

Diversified operations across financial services reduce dependency on a single revenue stream, enhancing resilience against market fluctuations.

Negative Factors

High Leverage

Significant leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Negative cash flows highlight liquidity issues, affecting the company's ability to fund operations and invest in future growth without external financing.

Profitability Pressure

Declining net profit margins indicate challenges in maintaining profitability, which could affect long-term financial health if not addressed.

Aditya Birla Capital Ltd. Business Overview & Revenue Model

Company Description

Aditya Birla Capital Limited, through its subsidiaries, provides various financial products and services in India and internationally. It operates through NBFC, Housing Finance, Life Insurance, Asset Management, General Insurance Broking, Stock and Securities Broking, Health Insurance, and Other Financial Services segments. The company offers protecting solutions, which include life, health, motor, and travel insurance; multiply wellness, and group and corporate general insurance; and investing solution, such as mutual funds, stocks and securities, wealth, portfolio management services, pension funds, and real estate investment. It also provides financing solutions comprising personal, home, small and medium-sized enterprise, and mortgage finance, as well as loan against securities; and debt capital markets and loan syndication services. In addition, the company offers asset management; and other financial services, such as depository, risk advisory, asset reconstruction, and other business support services. The company was formerly known as Aditya Birla Financial Services Limited and changed its name to Aditya Birla Capital Limited in June 2017. The company was incorporated in 2007 and is headquartered in Mumbai, India. Aditya Birla Capital Limited is a subsidiary of Grasim Industries Limited.

How the Company Makes Money

Aditya Birla Capital generates revenue through multiple streams. The primary sources include interest income from its lending activities across retail and corporate segments, premium income from its insurance products, and management fees from its asset management division. Additionally, the company earns commissions from distributing third-party financial products. Strategic partnerships, including collaborations with banks and financial institutions, enhance its distribution capabilities and broaden its customer base, further contributing to its earnings.

Aditya Birla Capital Ltd. Financial Statement Overview

Summary

Aditya Birla Capital Ltd. demonstrates moderate revenue growth and strong gross margins, but faces challenges in profitability and cash flow management. High leverage on the balance sheet increases financial risk, while negative cash flows highlight liquidity concerns.

Income Statement

Aditya Birla Capital Ltd. shows a stable revenue growth rate of 4.78% in the latest year, with a strong gross profit margin of 71.90%. However, the net profit margin has decreased to 8.11% from 13.03% the previous year, indicating pressure on profitability. The EBIT margin is healthy at 34.40%, but the EBITDA margin has seen a decline. Overall, the income statement reflects moderate growth with some profitability concerns.

Balance Sheet

The company has a high debt-to-equity ratio of 4.59, indicating significant leverage, which poses a risk. Return on equity has decreased to 10.97%, reflecting reduced efficiency in generating profits from shareholders' equity. The equity ratio is not explicitly provided, but the high leverage suggests a lower equity proportion in total assets. The balance sheet indicates financial stability concerns due to high leverage.

Cash Flow

Aditya Birla Capital Ltd. has negative operating and free cash flows, with a free cash flow to net income ratio of 1.02, indicating cash flow challenges. The operating cash flow to net income ratio is zero, highlighting inefficiencies in converting income into cash. The cash flow statement reflects significant liquidity issues and operational cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	218.02B	208.96B	173.28B	118.56B	88.02B	82.54B
Gross Profit	115.96B	111.84B	96.97B	71.23B	53.12B	43.23B
EBITDA	155.60B	149.12B	124.38B	106.20B	60.11B	57.00B
Net Income	34.09B	33.32B	33.35B	47.96B	17.06B	11.27B
Balance Sheet
Total Assets	0.00	2.79T	2.32T	1.81T	1.41T	1.25T
Cash, Cash Equivalents and Short-Term Investments	0.00	60.03B	158.67B	139.33B	139.37B	129.11B
Total Debt	0.00	1.39T	1.10T	847.26B	584.14B	530.33B
Total Liabilities	-323.47B	2.47T	2.03T	1.59T	1.24T	1.10T
Stockholders Equity	323.47B	303.89B	268.17B	203.11B	154.92B	137.43B
Cash Flow
Free Cash Flow	0.00	-283.92B	-245.03B	-242.74B	-52.49B	-4.58B
Operating Cash Flow	0.00	-279.35B	-241.00B	-240.29B	-50.70B	-3.08B
Investing Cash Flow	0.00	9.35B	-45.90B	-26.50B	-14.46B	24.29B
Financing Cash Flow	0.00	297.78B	285.14B	263.85B	58.36B	-25.81B

Aditya Birla Capital Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 357.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ABCAPITAL, the sentiment is Positive. The current price of 357.95 is above the 20-day moving average (MA) of 334.94, above the 50-day MA of 313.28, and above the 200-day MA of 248.16, indicating a bullish trend. The MACD of 10.09 indicates Negative momentum. The RSI at 74.77 is Negative, neither overbought nor oversold. The STOCH value of 95.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ABCAPITAL.

Aditya Birla Capital Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NAM.INDIA	76 Outperform	₹561.04B	41.90	―	2.17%	9.15%	0.43%
ICICIGI	72 Outperform	₹1.02T	36.12	―	0.69%	14.43%	25.13%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ABCAPITAL	63 Neutral	₹866.48B	26.52	―	―	7.07%	-13.03%
MFSL	59 Neutral	₹549.61B	202.85	―	―	-16.19%	-53.19%
ICICIPRULI	55 Neutral	₹878.79B	67.19	―	0.14%	-42.13%	48.75%

Aditya Birla Capital Ltd. Corporate Events

Aditya Birla Capital Invests Rs. 40 Crores in Digital Subsidiary

Aditya Birla Capital Limited has announced an investment of Rs. 40 Crores in its wholly owned subsidiary, Aditya Birla Capital Digital Limited, to support its growth and funding needs. This investment, made on a rights basis, ensures that the percentage shareholding remains unchanged, reinforcing the company’s commitment to expanding its digital financial services capabilities.

Aditya Birla Capital Expands Equity through Employee Stock Options

Aditya Birla Capital Limited has announced the allotment of 1,271,473 equity shares as part of their Employee Stock Option Schemes from 2017 and 2022. This move will increase the company’s paid-up equity share capital, reflecting its commitment to rewarding employees and potentially enhancing its market position.

Aditya Birla Capital Releases Financial Results Conference Call Recording

Aditya Birla Capital Limited announced the availability of an audio recording of its conference call discussing the unaudited financial results for the quarter and half year ending September 30, 2025. This move is part of the company’s commitment to transparency and compliance with regulatory requirements, potentially enhancing stakeholder trust and engagement.

Aditya Birla Capital Allots Rs. 100 Crore in Non-Convertible Debentures

Aditya Birla Capital Limited has announced the allotment of 10,000 secured, redeemable, rated, listed non-convertible debentures on a private placement basis, totaling Rs. 100 crore. This strategic move is expected to enhance the company’s financial positioning by securing funds through these debentures, which are listed on BSE and NSE and have a maturity date set for May 30, 2029.