Aditya Birla Capital Stock Price Analysis and Quick Research Report. Is Aditya Birla Capital an attractive stock to invest in?

Around 2% of India's total population invests in financial assets. The mutual fund industry's penetration in India is close to 7% (Based on the number of PAN cardholders). This under penetration offers a huge opportunity for the industry to grow.

Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry.

Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

Aditya Birla Capital stock price today is Rs 242.97. To understand the functions of the Aditya Birla Capital better, you must go through the following points:

Key Financials –

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of Aditya Birla Capital is Rs 714.28 Cr and the compounded growth of profit in the past 3 years is 113.85484565319 %. The PAT margin of Aditya Birla Capital is 83.0974 %.

• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In Aditya Birla Capital , the EPS grew by 370.1694 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): Aditya Birla Capital has a poor ROE track record. The ROE of Aditya Birla Capital is at 6.0512 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of Aditya Birla Capital is worth at the current levels at Rs 242.97. The stock is trading at a current P/E ratio of 63.8286 and the average historical P/E for the last 5 years was 227.649286363251.

• P/B ratio can be one of the best metrics to value such companies. Currently, Aditya Birla Capital is trading at a P/B of 2.5167 . The average historical P/B of Aditya Birla Capital for the last 5 years was 2.78403191490585. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

• Share Price: - The current share price of Aditya Birla Capital is Rs 242.97. One can use valuation calculators of ticker to know if Aditya Birla Capital share price is undervalued or overvalued.