Our 24th company in the Series of Best Stocks to Buy in India for Short term 2022 is Aditya Birla Sun Life Amc Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Aditya Birla Sun Life AMC is an investment manager catering to the customers through a wide variety of investment solutions focused on regular income, wealth creation and tax savings.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹15,396cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 29.25
Sector PE Ratio: 26.99
PE Ratio of this company is high than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 9.03
Sector PB Ratio : 2.28
PB Ratio of this company is high than Sector’s PB ratio. So it’s Average PB than the peers of this company.
Dividend Yield : 0.94%
Sector Dividend Yield : 0.56%
Dividend Yield of this company is high than Sector. Dividend of this is Below Average than the peers of this company.
ROE (Return on equity) and ROCE (Return on capital equity) is Good
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 279.93 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
Debt Level: ABSLAMC is debt free.
Reducing Debt: ABSLAMC has no debt compared to 5 years ago when its debt to equity ratio was 0.02%.
Debt Coverage: ABSLAMC has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: ABSLAMC has no debt, therefore coverage of interest payments is not a concern.
Share Holding Pattern
|Promotor Holding||Foreign Institution|
|Other Domestic Institutions||Retail & Others|
Above table showing there is no big change in Promotor Holding which is 86.50% in June 2021. FIIs invested in June 2021 with 1.54% and retail investor is 7.01% .
Investment Checklist for Aditya Birla Sun Life Amc Ltd.
- The company is currently profitable
- Earnings are forecast to grow by an average of 8% per year for the next 3 years
- They are debt free
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins improved or ABSLAMC became profitable
- They have sufficient analyst coverage
- No concerning events detected
- No significant insider selling over the past 3 months
- Revenue is meaningful (₹14B)
- Market cap is meaningful (₹151B)
- ABSLAMC does not have negative shareholders equity.
According to its historical performance we can predict stock target.
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
Entry Buying Zone : 500 to 520
Target: 700 (40% Upside)
Time Horizon: 6-8 Months
Risk Profile: Low Risk (Stock is 1.88x as volatile as Nifty)
Hope you liked Our 24th company in the Series of Best stocks to buy in India for short term 2022. 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.
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