🌟 Stock of the Week – Aditya Birla Capital Ltd

📉 GoalFi Weekly Snapshot – June 22, 2025

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GoalFi Social
June 22, 2025

Guided by a vision to make financial planning accessible and impactful.

Hello ,

We’re excited to bring you this week’s spotlight from the GoalFi desk – a name that has been making waves across the financial space this June.

Aditya Birla Capital Limited (ABCAPITAL), the financial services arm of the Aditya Birla Group, is a universal financial solutions provider that caters to the evolving needs of individuals and institutions across all life stages. With a strong and diversified presence in lending, insurance, asset management, and advisory, ABCAPITAL continues to demonstrate strength in fundamentals and momentum on the charts.

Let’s take a closer look at what makes it our Stock of the Week.

🌟 Stock of the Week – Aditya Birla Capital Ltd (ABCAPITAL)

CMP: ₹260.25 | Weekly Gain: 🔼 +8.27% | MTD Gain: 🔼 +16.96%
Sector: Diversified Financials

📌 Why It Caught Our Eye

Aditya Birla Capital Ltd (ABCAPITAL) has seen a sharp rally in recent sessions, up over 8% this week and nearly 17% this month, powered by renewed investor interest in diversified financials and strong quarterly performance.

It currently features in high-conviction GoalFi portfolios:

  • ⚡ Momentum Select 10 – Mid Cap Model: +7.25% return | Rebalanced: 10-Jun-2025

  • 💼 Also featured in several of our high-conviction private portfolios, reinforcing our strong outlook on ABCAPITAL.

🧮 Q4FY25 (March 2025) vs Q3FY25 (December 2024)

Metric

Mar 2025

Dec 2024

QoQ Change

Revenue (₹ Cr)

12,214

9,381

🔼 +30.2%

Operating Profit

3,795

3,505

🔼 +8.2%

Net Profit (₹ Cr)

886

724

🔼 +22.4%

EPS (₹)

3.32

2.72

🔼 +22.1%

OPM (%)

31%

37%

🔽 -600 bps

📊 Interpretation:

  • Strong top-line momentum continued into Q4, with a 30% sequential growth in sales.

  • Net profit jumped over 22%, indicating operational efficiency.

  • However, operating margins contracted by 600 basis points, possibly due to higher borrowing costs or lower yield spreads in lending verticals.

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✅ Key Positives

  • Strong 5Y profit CAGR of 30.5%

  • 5Y sales CAGR at 19%, supporting scalability

  • Backed by the Aditya Birla Group with diverse financial verticals across lending, insurance, AMC, and wealth management

⚠️ Key Risks / Monitorables

  • Despite profitability, no dividend payout policy to date

  • Interest coverage remains low, implying sensitivity to rate cycles

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📊 Performance Track Record

Metric

Value

5-Year Stock CAGR

35%

3-Year Stock CAGR

43%

Return on Equity (FY25)

12%

TTM Profit Growth

-1% (due to margin compression in prior quarters)

🧾 Shareholding Structure (March 2025)

Category

Stake (%)

Promoters

68.84

FIIs

7.83

DIIs

9.79

Public

13.53

Promoter stake remains stable. Public and DII interest appears to be gradually increasing.

💼 Balance Sheet Check (FY25)

  • Total Assets: ₹2.79 lakh Cr

  • Borrowings: ₹1.4 lakh Cr

  • Reserves: ₹27,782 Cr

  • Investments: ₹75,191 Cr

The company has significantly expanded its balance sheet in recent years, showing confidence in sectoral tailwinds and future growth.

💬 GoalFi Take

Aditya Birla Capital is in a sweet spot with a scalable platform, strong group backing, and rising presence across financial sub-segments. Despite some margin compression, its sequential growth momentum is strong, and market action reflects rising investor conviction.

📈Invest in AB Capital with our Momemtum Select 10 - Midcap Model

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We hope this update helps you stay informed and empowered in your investment journey. Feel free to reach out if you have any questions or need personalized advice.

Best Regards,
Team GoalFi

Disclaimer: This newsletter is intended solely for educational and informational use. It does not constitute financial advice or serve as a promotional message.