Aditya Birla Capital Ltd.
Banking · NSE
52-week range
₹188 – ₹376
From 52w high
-3.5%
RSI (14)
62.4
vs SMA 50 / 200
↑ 50 · ↑ 200
Aditya Birla Capital (₹362.95) is a diversified financial services holding company whose stock has gained 89.1% over the past year, now trading 9.2% above its 50-DMA and 13.0% above its 200-DMA with RSI at 62.43. FY26 PAT rose 21% to ₹3,797 crore and the lending portfolio crossed ₹2 lakh crore, but ROE of 11.18% ranks last among its 6-peer sector group and free cash flow has been negative across all available years. The forward PE of 14.73 represents a significant compression from the trailing PE of 25.46, reflecting market expectations of continued earnings improvement.
- ✓5-year earnings CAGR of 30.1% and Q4 FY26 profit up 30% YoY demonstrate accelerating bottom-line growth, with FY26 PAT reaching ₹3,797 crore on a lending portfolio that has crossed ₹2 lakh crore.
- ✓Price momentum is strong: up 89.1% over 12 months, above both SMA50 (₹332.41) and SMA200 (₹321.25), with a drawdown of only 3.46% from the 52-week high.
- ✓Advent International acquired a 14.29% stake in subsidiary Aditya Birla Housing Finance for ₹2,750 crore via preferential allotment, signalling external institutional validation of the housing finance unit.
- ✓Forward PE of 14.73 versus trailing PE of 25.46 implies the market is pricing in significant near-term earnings growth, and the 5-year revenue CAGR of 7.7% provides a base-level growth floor.
- ✗ROE of 11.18% ranks 6th of 6 in the peer group, trailing Bajaj Finance (17.91%), HDFC Bank (13.82%), Axis Bank (13.15%), Bajaj Finserv (14.6%), and even HDFC Life (11.28%) — capital efficiency lags all listed peers.
- ✗FCF has been positive in 0 of the available years; for a financial services holding company, the inability to generate free cash flow constrains organic capital deployment across subsidiaries.
- ✗D/E of 491.75, while structurally common in lending businesses, coincides with a rising debt trend, a consistency score of 12, and ROE above 15% in only 1 recorded year — leverage has not yet produced consistent high-return outcomes.
- ✗Quality score of 38 out of 100 places ABCAPITAL 4th of 6 in sector peer ranking; the combination of low consistency score (12) and last-place ROE ranking suggests the recent profit acceleration may be early-stage rather than entrenched.
- ·Q4 FY26 results showed profit up 30% YoY with stable asset quality and strong digital adoption reported across segments; FY26 full-year PAT of ₹3,797 crore was up 21% YoY.
- ·Advent International acquired 14.29% in Aditya Birla Housing Finance for ₹2,750 crore via preferential allotment in April 2026, a subsidiary-level transaction that introduces an external strategic partner into the housing finance unit.
- ·Mean analyst rating of 1.17 across 12 analysts (1–5 scale, lower = more constructive); the full earnings-results call transcript was posted publicly in May 2026, indicating management transparency around FY26 outcomes.
- ?Does the 30.1% earnings CAGR over 5 years reflect a structural improvement in ABCAPITAL's business mix, or is it concentrated in the most recent 1-2 years following a low base?
- ?At what point, if any, does the NBFC holding-company model generate positive free cash flow, and what metrics would signal that inflection has arrived?
- ?How does the Advent International stake in the housing finance subsidiary affect ABCAPITAL's capital allocation flexibility and consolidated ROE trajectory?
- ?Given that ROE currently ranks last among the 6-peer group despite the stock's 89.1% 1-year gain, what evidence would indicate whether the valuation premium is justified by future earnings convergence or is ahead of fundamental improvement?
PE
25.5
Forward PE
14.7
ROE
+11.2%
Profit margin
+11.7%
D/E
491.75
Dividend yield
—
Quality score
38/100
ROE 5y above 15%
1/5 yrs
FCF 5y positive
0/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.