Aditya Birla Sun Life AMC Limited
Aditya Birla Sun Life AMC Limited Fundamental Analysis
Aditya Birla Sun Life AMC Limited (ABSLAMC.BO) shows strong financial fundamentals with a PE ratio of 30.71, profit margin of 52.50%, and ROE of 25.71%. The company generates $18.6B in annual revenue with strong year-over-year growth of 24.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 89.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ABSLAMC.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentABSLAMC.BO demonstrates superior asset utilization.
Valuation Score
WeakABSLAMC.BO trades at a premium to fair value.
Growth Score
ExcellentABSLAMC.BO delivers strong and consistent growth momentum.
Financial Health Score
ModerateABSLAMC.BO shows balanced financial health with some risks.
Profitability Score
ExcellentABSLAMC.BO achieves industry-leading margins.
Key Financial Metrics
Is ABSLAMC.BO Expensive or Cheap?
P/E Ratio
ABSLAMC.BO trades at 30.71 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ABSLAMC.BO's PEG of 6.65 indicates potential overvaluation.
Price to Book
The market values Aditya Birla Sun Life AMC Limited at 7.41 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 23.10 times EBITDA. This signals the market has high growth expectations.
How Well Does ABSLAMC.BO Make Money?
Net Profit Margin
For every $100 in sales, Aditya Birla Sun Life AMC Limited keeps $52.50 as profit after all expenses.
Operating Margin
Core operations generate 57.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $25.71 in profit for every $100 of shareholder equity.
ROA
Aditya Birla Sun Life AMC Limited generates $22.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aditya Birla Sun Life AMC Limited produces operating cash flow of $3.84B, showing steady but balanced cash generation.
Free Cash Flow
Aditya Birla Sun Life AMC Limited generates strong free cash flow of $3.61B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $12.49 in free cash annually.
FCF Yield
ABSLAMC.BO converts 1.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
6.65
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
16.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.22
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How ABSLAMC.BO Stacks Against Its Sector Peers
| Metric | ABSLAMC.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.71 | 18.88 | Worse (Expensive) |
| ROE | 25.71% | 801.00% | Weak |
| Net Margin | 52.50% | 2213.00% | Weak |
| Debt/Equity | 0.02 | 1.03 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 615.97 | Weak Liquidity |
| ROA | 22.08% | -19854.00% (disorted) | Strong |
ABSLAMC.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aditya Birla Sun Life AMC Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
45.24%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
88.17%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
42.50%
Industry Style: Value, Dividend, Cyclical
High Growth