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ABCAPITAL : Aditya Birla Capital Ltd share Targets, Business, Fundamental & Technical Analysis

        Aditya Birla Capital Ltd. ABCL (NSE: ABCAPITAL) share made an all-time high in September 2017, the company have grown significantly since then. Q4 FY2021 results were the all-time highest ever. The company is expected to grow steadily in recent future. Read the complete study below. 

Aditya Birla Capital Ltd: ABCAPITAL Business Analysis

        ABCAPITAL is a Midcap size company with, a market cap of around ₹30,265 Cr today (as of 13/06/2021). Aditya Birla Capital Limited (ABCL) is the holding company for the financial services businesses of the Aditya Birla Group.
        ABCL’s subsidiaries have a strong presence across Protecting, Investing and Financing solutions, ABCL is a universal financial solutions group catering to the diverse needs of its customers across their life stages. Powered by more than 22,500 employees, the subsidiaries of ABCL have a nationwide reach with 850+ branches and more than 2,00,000 agents/channel partners and several bank partners. (Source: About ABCL)

ABCAPITAL main business activities:

Shareholding pattern for ABCAPITAL

        *Numbers in percentages
Share holding pattern for ABCAPITAL

        In the past two years, promoter holding data shows the Promoters group have the highest stake in the company around 70%, which is steady over the period.
        FII (Foreign Institutional Investors) holding is almost stable whereas DIIs (Domestic Institutional Investors i.e. banks, mutual funds etc) have increased their holding, also public holding is decreased slightly.
        These observations imply that Smart Money, i.e. the big players are accumulating this stock from the public, which is a good sign for future prospects that big players are bullish in ABCL.

Aditya Birla Capital Ltd: ABCAPITAL Fundamental Analysis | Financial Figures

Steady growth in sales in ABCAPITAL

Q4 FY21 (ending March 2021) | Key Highlights of ABCAPITAL

        Though there are tough times amid Covid 19 situations, ABCL has posted the highest ever quarterly results in terms of numbers.
        Quarter on Quarter results have shown a 16% jump in gross sales, Q4 FY20 gross sale was ₹4,808 Cr, Q4 FY21 gross sale stands as ₹5,587 Cr. Q-o-Q net profit has jumped to 160% which is stellar. Q4 FY20 net profit was ₹144 Cr, whereas Q4 FY21 net profit ₹375 Cr.
        Comparing Q4 FY21 with the previous quarter Q3 FY21 (₹5,032 Cr) we see 11% jumps, which shows the company is getting its strength back, and from here on these numbers are bound to get better. Net profit jumps from ₹289 Cr to ₹375 Cr, around a 30% jump.
        COVID 19 period may be close to an end, there might not be any third wave as Central Government is very keenly committed to mass vaccination. All 18+ age category vaccination are to be started from 18 June'21. The target to complete maximum vaccination done by December'21. 
        Aditya Birla Capital Ltd is expected to give a good quarterly result in the next quarter Q1 FY22

Annualised Financial figures of ABCAPITAL for FY21 ending March 2021

        This year company has also posted the highest ever Annual Results.
        Gross sales have increased from ₹16,798 Cr in FY20 to  ₹19,248 Cr in FY21, which is a 14% jump. Net profit has also jumped from ₹920 Cr to ₹1,127 Cr, around 23%.

Aditya Birla Capital Ltd: ABCAPITAL Technical Analysis | Chart Pattern

        On 13/06/2021 stock priced at ₹125.30/share (NSE), below picture shows the recent performance in this stock.
Past performances of ABCAPITAL

Chart pattern and future projections of ABCAPITAL

Flag Pattern daily chart time frame ABCAPITAL
        After sudden fall in March-April in 2020 due to fear of COVID 19 pandemic the stock have recovered steadily following trending support and resistance lines, the stock is consolidating in range-bound for the last 3-4 months. The chart pattern in the daily time frame shows a classic example of Flag Pattern in the making (know What is a Flag Pattern? How to trade using Flag Pattern).

Weekly chart analysis ABCAPITAL multibagger return
        Weekly chart pattern in Aditya Birla Capital Ltd. stock showing Rounding Bottom Pattern, which is a bearish reversal pattern. Earlier a similar pattern is observed last year, where it was almost going smoothly but due to sudden global pandemic every sector was got crashed, this is also no exception. In this present situation where the world got hit by Covid's second wave, this stock doesn't saw any major correction and looking in a bullish trend.
        The last one year return in this stock was around 126%, where is Nifty has given around 60% in the same period. That means it has beaten Nifty considerably.

Future projections in ABCAPITAL

        The all-time high price of ABCAPITAL is ₹255 which was in September 2017. The company's top line (sales) & bottom line (profits) have increased by margins since then. Also, the balance sheet has also improved a lot. 
        The company is expected to grow in future at a decent rate. People are getting more inclined towards products provided by these finance management companies.

Final verdict about Aditya Birla Capital Ltd share target

        We can expect decent growth in the stock price in the upcoming months from this level. Our long term Share target is 100% +. Holding period around 1 to 1.5 year.
        Though it is only an assumption. Stock movement cannot be predicted accurately, please know your risk appetite, and consult your financial advisor before making any decision. Read disclaimer**.

**Disclaimer

        The presentation shown here is only for study purpose only. All information we portrayed here is true to the best of our knowledge and from the publicly available source. We are not liable if any information is found incorrect, it was completely unintentional. We are not professional advisor, we may or may not have any professional qualifications as well. We are also declaring that we may or may not have any holdings in the company discussed above. Your decision to make or lose money in this stock is completely your liability only. WE ARE NOT LIABLE FOR ANY OF YOUR FINANCE-RELATED DECISIONS, PLEASE CONSULT WITH YOUR FINANCIAL ADVISOR BEFORE MAKING ANY INVESTMENT DECISIONS.

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