Aditya Birla Sun Life AMC Ltd.
NSE: ABSLAMCAditya Birla Sun Life AMC Ltd.: A 30-second snapshot
Aditya Birla Sun Life AMC (ABSLAMC) is a large asset management company currently priced at ₹1,030, up 57.2% over the past 12 months and trading above both its 50-DMA (₹989) and 200-DMA (₹858). Against this price strength, the 5-year earnings growth rate stands at -18.1% and Q4 FY26 PAT declined 18% YoY to ₹187 crore, creating a visible gap between recent price performance and the medium-term fundamental trend.
P/E
30.6
Forward P/E
23.0
ROE
+25.1%
Debt / Equity
1.58
Profit Margin
+47.4%
Div. Yield
+2.3%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
60/100
News
8 headlines · 3 positive · 1 negative
ABSLAMC: FY26 revenue and profit rose, dividend of ₹25.50/share proposed, Gift City business transferred - TradingView
TradingView
Aditya Birla Sun Life AMC Profit Drops 18% in Q4; Revenue Up 7% - Whalesbook
Whalesbook
Aditya Birla Sun Life AMC FY26 Profit Grows 4.7%; Board Recommends ₹25.5 Dividend - Whalesbook
Whalesbook
Aditya Birla Sun Life AMC March-Quarter Consol Net Profit 1.87 Billion Rupees - TradingView
TradingView
Aditya Birla Sun Life AMC Allots ESOP Shares, Boosting Capital to ₹144.5 Cr - Whalesbook
Whalesbook
Recent context
- ·FY26 results (April 2026): revenue up 7% for the full year but Q4 PAT dropped 18% YoY; the board proposed a ₹25.5/share final dividend and the Gift City business was transferred — a structural change that may affect the revenue base going forward.
- ·ESOP share allotment in April 2026 increased paid-up capital to ₹144.5 crore, a minor dilution event that is standard for AMC compensation structures but incrementally dilutive to per-share metrics.
- ·Mean analyst rating of 1.71 across 14 analysts (1–5 scale, lower = more constructive); news sentiment across 8 recent items is 3 positive, 4 neutral, 1 negative — broadly balanced despite the Q4 earnings miss.
Strengths
- +ROE of 25.1% is the highest among the 6 companies in its assigned sector peer group and above the typical 15% threshold for quality businesses; ROE has been above 15% in 4 of the years tracked.
- +Profit margin of 47.4% is exceptionally high for a financial services business, reflecting the fee-based, capital-light nature of asset management revenue.
- +The stock is above its 50-DMA (₹989) and 200-DMA (₹858), with RSI at 50.1 (neutral zone) — not in technically extended territory despite the strong 12-month gain.
- +FY26 full-year profit grew 4.7% and the board proposed a ₹25.5/share dividend; dividend yield stands at 2.33%, providing a cash return component alongside capital appreciation.
Weaknesses
- −5-year revenue growth of -14.5% and 5-year earnings growth of -18.1% indicate the business has not grown its top or bottom line in aggregate over the medium term; this is not a one-quarter anomaly.
- −Q4 FY26 PAT fell 18% YoY to ₹187 crore even as full-year revenue rose 7%, indicating cost pressure or margin compression at the quarterly level that the annual figure obscures.
- −Debt-to-equity of 1.577 is above what is typical for a fee-based asset manager; the debt trend is flagged as rising, which adds a layer of balance sheet risk alongside the declining earnings trajectory.
- −Quality score of 34 ranks 4th of 6 in its assigned peer group; while the peer group includes banks and NBFCs (structurally different), the absolute score reflects below-median composite quality across profitability, growth, and balance sheet dimensions.
Open questions
- ?Does the 5-year revenue and earnings contraction reflect a structural challenge in ABSLAMC's AUM growth or market-share trajectory, or is it primarily a function of market cycles and fee compression affecting the broader AMC industry?
- ?How does the rising debt-to-equity trend (currently 1.577) fit with the capital-light business model of an asset manager, and what is management's stated rationale for increasing leverage?
- ?What is the impact of the Gift City business transfer on the consolidated revenue base, and how does it change the geographic and regulatory exposure of the remaining entity?
- ?Given that the stock has gained 57% over 12 months while 5-year earnings growth is -18.1%, what assumptions about future AUM growth or fee recovery would need to hold for the current PE of 30.6x (forward PE 23x) to be sustained?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ABSLAMC | Aditya Birla Sun Life AMC Ltd.You're viewing | 30.6 | +25.1% | 34 |
| Industry avg | across 5 peers | 31.7 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.7 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.9 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.1 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 28.3 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 68.5 | +11.3% | 20 |
Technical state
Current price
₹1,030.40
SMA 50
₹988.73
SMA 200
₹857.92
RSI (14)
50.1 (neutral)
From 52w high
-8.3%
1Y return
+57.2%
3M return
+19.7%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- medium5-year revenue growth of -14.5% and 5-year earnings growth of -18.1% represent sustained medium-term contraction; FY26 full-year profit grew 4.7% but Q4 FY26 PAT fell 18% YoY, highlighting inconsistency between annual and quarterly trajectory.
- mediumDebt-to-equity of 1.577 is elevated for an asset management business where peers typically operate with minimal leverage; debt trend is flagged as rising, occurring alongside declining 5-year earnings.
- mediumABSLAMC is classified in the Banking sector peer group alongside AXISBANK, HDFCBANK, BAJFINANCE, and HDFCLIFE — structurally different businesses. ABSLAMC ROE of 25.1% ranks 1st of 6 and PE of 30.6x ranks 5th of 6 in this peer set, but comparisons carry limited analytical weight due to the sector mismatch. Quality score of 34 ranks 4th of 6.
- lowQuality score of 34 (out of 100) is below the sector median in this peer group (median approximately 38); ROE has been above 15% in 4 of the available years and FCF positive in 4 years, suggesting adequate but not exceptional consistency (consistency score 71).
Cross-section contradictions
- 5-year earnings growth of -18.1% and a Q4 FY26 PAT decline of 18% YoY contrast with a 57.2% price gain over the past 12 months and the stock trading only 8.3% below its 52-week high, indicating price has moved well ahead of the earnings trend over this period.
- FY26 full-year profit is reported up 4.7% with a ₹25.5/share dividend proposed, while Q4 FY26 profit fell 18% YoY — the annual and quarterly signals point in opposite directions, making the near-term earnings trajectory difficult to read from top-level figures alone.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days