Our 2nd company in the Series of Best Stocks to Buy in India for Short term 2021 is Aditya Birla Capital Ltd
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Aditya Birla Financial Services Pvt Ltd offers life insurance, asset management, infrastructure project & structured finance, private equity, broking, wealth management and online money management
Now Let’s check the important fundamental figures of this company. This is a mid cap company with Market Cap ₹24,545cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 21.79
Sector PE Ratio: 26.26
PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 1.61
Sector PB Ratio : 2.26
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 0%
Sector Dividend Yield : 0.54%
No Dividend Yield of this company.
ROE: 8.19%
ROCE: 5.74%
ROE (Return on equity) and ROCE (Return on capital equity) is Above Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 19,542.19 | 1,126.54 |
| 2020 | 16,960.22 | 919.78 |
| 2019 | 15,397.81 | 870.94 |
| 2018 | 11,702.85 | 693.06 |
You can see the company growth clearly in the above table, in 2019 Net profit was 870.94 Cr. only and in 2020, It increased to 919.78 Cr. and in 2021, it is increased to 1,126.54 Cr.
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 1,08,759.31 | 99,624.77 | 98,800.14 | 83,962.04 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 1,08,759.31 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| -457.72 | 4,113.69 | -10,418.31 | -12,050.27 |
Debt Level: Aditya Birla Capital Company debt to equity ratio (346.1%) is considered high.
Reducing Debt: Aditya Birla Capital Company debt to equity ratio has reduced from 452.5% to 346.1% over the past 5 years.
Debt Coverage: Aditya Birla Capital Company operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: Insufficient data to determine if Aditya Birla Capital interest payments on its debt are well covered by
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 70.69% | 6.89% | 1.18% | 2.52% | 18.73% |
| Mar 2021 | 70.70% | 6.93% | 1.41% | 2.54% | 18.43% |
| Dec 2020 | 70.45% | 6.77% | 1.44% | 2.56% | 18.79% |
| Sep 2020 | 70.47% | 6.26% | 1.57% | 2.58% | 19.12% |
Above table showing there is no big change in Promotors holding which is 70.69% in June 2021. FIIs invested in June 2021 with 6.89% and retail investor is 18.73%.
Now We’ll check the return of the company, This company given 63.87% returns in last 1 year from 2020 to 24 Aug 2021.
Investment Checklist for Aditya Birla Capital Ltd.
- The company is currently profitable
- Earnings are forecast to grow by an average of 23.7% per year for the next 3 years
- They do not pay a dividend
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins decreased but not substantially
- They have sufficient analyst coverage
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹154B)
- Market cap is meaningful (₹245B)
- Aditya Birla Capital does not have negative shareholders equity.
According to its historical performance we can predict stock target.
[membership_protected_content user=non-member]
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
[/membership_protected_content]
[membership_protected_content]
Entry Buying Zone : 98 to 102
Target: 150 (40% Upside)
Time Horizon: 1 Year
Risk Profile: Low Risk (Stock is 1.88x as volatile as Nifty)
[/membership_protected_content]
Hope you liked Our 2nd company in the Series of Best stocks to buy in India for short term 2021. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss