Aditya Birla Capital Analysis

dividend

Pros

Cons

• No need to calculate the sustainability of Aditya Birla Capital's dividends in 3 years as they are not expected to pay a notable one for India.
• Unable to evaluate Aditya Birla Capital's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Aditya Birla Capital's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

Pros

• Aditya Birla Capital's earnings are expected to grow significantly at over 20% yearly.
• Aditya Birla Capital's earnings growth is expected to exceed the India market average.
• Aditya Birla Capital's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Aditya Birla Capital's earnings are expected to increase by more than the low risk growth rate in 3 years time.
• Performance (ROE) is expected to be above the current IN Diversified Financial industry average.
• An improvement in Aditya Birla Capital's performance (ROE) is expected over the next 3 years.
• Aditya Birla Capital's revenue is expected to increase by more than 50% in 2 years time.
• Aditya Birla Capital's revenue growth is expected to exceed the India market average.

Cons

• Aditya Birla Capital's earnings are expected to decrease over the next year.
• Aditya Birla Capital's net income is expected to increase but not above the 50% threshold in 2 years time.
• Aditya Birla Capital is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• Aditya Birla Capital's revenue is expected to grow by 14.4% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Aditya Birla Capital is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Aditya Birla Capital is profitable, therefore cash runway is not a concern.
• Aditya Birla Capital is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.5x debt.
• The level of debt compared to net worth has been reduced over the past 5 years (406.4% vs 400% today).
• Low level of unsold assets.

Cons

• Debt is not well covered by operating cash flow (7.5%, less than 20% of total debt).
• Aditya Birla Capital's long term commitments exceed its cash and other short term assets.
• Aditya Birla Capital's level of debt (400%) compared to net worth is high (greater than 40%).

management

Pros

• The tenure for the Aditya Birla Capital board of directors is about average.
• Ajay's compensation has been consistent with company performance over the past year, both up more than 20%.
• More shares have been bought than sold by Aditya Birla Capital individual insiders in the past 3 months.
• The average tenure for the Aditya Birla Capital management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• Ajay's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Aditya Birla Capital has significant price volatility in the past 3 months.

past

Pros

• Aditya Birla Capital has delivered over 20% year on year earnings growth in the past 5 years.

Cons

• Aditya Birla Capital's 1-year earnings growth is less than its 5-year average (5.5% vs 21.4%)
• Aditya Birla Capital used its assets less efficiently than the IN Diversified Financial industry average last year based on Return on Assets.
• Aditya Birla Capital has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Aditya Birla Capital's earnings growth has not exceeded the IN Diversified Financial industry average in the past year (5.5% vs 13.5%).

value

Pros

• Aditya Birla Capital is good value based on expected growth next year.
• BSE:540691 is up 20% outperforming the Diversified Financial industry which returned 10.8% over the past month.
• BSE:540691 is up 20% outperforming the market in India which returned 8% over the past month.

Cons

• Aditya Birla Capital's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Aditya Birla Capital's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Aditya Birla Capital is overvalued based on assets compared to the IN Diversified Financial industry average.
• Aditya Birla Capital is overvalued based on earnings compared to the IN Diversified Financial industry average.
• Aditya Birla Capital is overvalued based on earnings compared to the India market.
• 540691 underperformed the Diversified Financial industry which returned -37.3% over the past year.
• 540691 underperformed the Market in India which returned -14.5% over the past year.