Fact based stock research
Aditya Birla Capital (BSE:540691)

INE674K01013

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Aditya Birla Capital stock research in summary

adityabirlacapital.com

ANALYSIS: With an Obermatt Combined Rank of 83 (better than 83% compared with investment alternatives), Aditya Birla Capital (Other Financial Services, India) shares have much better financial characteristics than comparable stocks. Shares of Aditya Birla Capital are a good value (attractively priced) with a consolidated Value Rank of 56 (better than 56% of alternatives), show above-average growth (Growth Rank of 57), and are safely financed (Safety Rank of 55), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 83, is a strong buy recommendation based on Aditya Birla Capital's financial characteristics. As the company Aditya Birla Capital's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 56), above-average growth (Obermatt Growth Rank of 57), and indicate that the company is safely financed (Obermatt Safety Rank of 55), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of Aditya Birla Capital. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	56
Growth Rank	57
Safety Rank	55
Combined Rank	83

Country	India
Industry	Other Financial Services
Index	Good Governace Growth Markets, Independent Boards Growth Markets
Size class	Large

2-May-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Aditya Birla Capital

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	34	51	66	56
GROWTH
GROWTH	60	69	33	57
SAFETY
SAFETY	3	52	50	55
SENTIMENT
SENTIMENT	n/a	90	50	^new
360° VIEW
360° VIEW	n/a	92	66	^new

Most recent update of the stock research: 2-May-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Aditya Birla Capital is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	34	51	66	56
GROWTH
GROWTH	60	69	33	57
SAFETY
SAFETY	3	52	50	55
COMBINED
COMBINED	12	81	63	83

Last update of combined financial performance: 2-May-2024. Stock analysis on combined financial performance: The higher the rank of Aditya Birla Capital the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 56 (better than 56% compared with alternatives), Aditya Birla Capital shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for Aditya Birla Capital. Price-to-Sales (P/S) is 69, which means that the stock price compared with what market professionals expect for future sales is lower than 69% of comparable companies, indicating a good value concerning to Aditya Birla Capital's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 1, meaning that dividends are expected to be lower than for 99% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 54% of alternatives (only 46% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 59% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 56, is a buy recommendation based on Aditya Birla Capital's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in Aditya Birla Capital could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, Aditya Birla Capital looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	94	86	83	69
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	43	40	61	41
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	28	42	60	46
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	34	51	66	56

Last update of Value Rank: 2-May-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Aditya Birla Capital; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 57 (better than 57% compared with alternatives), Aditya Birla Capital shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Aditya Birla Capital. Sales Growth has a rank of 82 which means that currently, professionals expect the company to grow more than 82% of its competitors. Capital Growth is also above 6% of competitors with a rank of 73, and Stock Returns with the rank of 65 is also an outperformance. Only Profit Growth is low with a rank of 6 which means that currently, professionals expect the company to grow its profits less than 94% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 57, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Aditya Birla Capital is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	49	77	82	82
PROFIT GROWTH
PROFIT GROWTH	n/a	67	4	6
CAPITAL GROWTH
CAPITAL GROWTH	n/a	45	56	73
STOCK RETURNS
STOCK RETURNS	92	69	27	65
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	60	69	33	57

Last update of Growth Rank: 2-May-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Aditya Birla Capital.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 55 (better than 55% compared with alternatives), the company Aditya Birla Capital has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Aditya Birla Capital is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Aditya Birla Capital. Refinancing is at 79, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 79% of its competitors. Liquidity is also good at 55, meaning the company generates more profit to service its debt than 55% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 16, which means the company has an above-average debt-to-equity ratio. It has more debt than 84% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 55 (better than 55% compared with alternatives), Aditya Birla Capital has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Aditya Birla Capital could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Aditya Birla Capital and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	8	16	10	16
REFINANCING
REFINANCING	44	87	87	79
LIQUIDITY
LIQUIDITY	9	40	41	55
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	3	52	50	55

Last update of Safety Rank: 2-May-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Aditya Birla Capital and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	97	93	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	18	25	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	76	4	^new
MARKET PULSE
MARKET PULSE	n/a	79	75	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	90	50	^new

Last update of Sentiment Rank: 2-May-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Aditya Birla Capital.
Upgrade to a Premium Account to access the latest ranks.