Best Stocks to Buy in India for Short term – Aditya Birla Sun Life Amc Ltd

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: 32.5%

ROCE: 45.53%

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

YearRevenue(cr.)Profit(cr.)
20211,205.84526.29
20201,234.77494.40
20191,407.25446.81
20181,323.67348.56

We should check now liabilities of company also in the below table

Total Current & Non Current Liabilities

2021  2020 2019  2018
279.93255.09277.90411.72

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

2021  2020 2019  2018
500.71480.60294.92329.48

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 HoldingForeign Institution
Mutual Fund
Other Domestic InstitutionsRetail & Others
Jun 202186.50%1.54%3.84%1.11%7.01%
Mar 202186.50%1.85%3.94%1.60%7.11%
Dec 202086.50%1.85%3.94%1.60%7.11%
Sep 202086.50%0.00%0.00%0.00%0.00%

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

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.

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

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