Jul. 6 at 4:55 PM
$ABCAPITAL.NSE
Fundamental View-
$ADITYA Birla Capital Limited (AB Capital) is a leading diversified financial services company in India, offering solutions across protection, investing, and financing. With a market capitalization of over ₹71,000 crore, the company has demonstrated strong financial performance backed by robust revenue growth (18% CAGR) and impressive earnings growth (29% CAGR) in recent years.
The
$COMPANY maintains healthy profitability with a net profit margin of around 11% and an EBITDA margin exceeding 36%. Its Return on Equity (ROE) stands at approximately 11%, while Return on Capital Employed (ROCE) is near 10%, reflecting efficient capital utilization.
Though
$AB Capital operates with high leverage typical of NBFCs, with a debt-to-equity ratio of around 4.5x, it continues to maintain stability in its operations. The stock trades at a reasonable valuation with a P/E ratio of approximately 21x, below the sector average of 36x, offering investors a balanced exposure to India's growing financial sector. With its strong brand presence, diversified business model, and consistent focus on growth, AB Capital remains a preferred choice for investors seeking exposure to the financial services space with long-term potential.
Technical View-
As observed in the weekly chart,
$AB CAPITAL has been witnessing a strong upward rally for the past 9 consecutive weeks. The company is consistently expanding its business operations, which is reflecting positively in the stock’s performance.
Fundamentally, the stock remains strong and is comfortably trading above its 14, 55, and 200 EMA levels, indicating bullish strength in both short-term and long-term trends.
The
$STOCK is also taking solid support near its 50 and 200-day moving averages, further confirming the positive sentiment.
Technical indicators are also supporting the bullish view the MACD line is showing buying strength, while the RSI on the weekly chart is hovering around 80.00, suggesting the stock is in strong bullish momentum. However, due to continuous buying, the stock appears to be in an overbought zone at the current levels, making fresh entry slightly risky.
Investors who are already holding positions may continue to hold with a potential upside target of ₹300-310. For fresh entry, it is advisable to wait for a possible dip towards the ₹240-250 range, with a stop-loss near ₹220. On the upside, the
$STOCK is expected to test levels around ₹300 in the near term if the bullish momentum sustains.
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