Aditya Birla Capital Limited (ABCL) is one of the largest financial services players in India. The company’s product portfolio includes life insurance, currency and commodity broking, project finance, and others.
The market capitalisation of ABCL on June 13, 2018 is over Rs.30,500 crore.
AB Capital’s Wealth and Recent Performance
- AB Capital’s net profit (before minority interest), increased by 30% year-on-year from Rs.775 crore to Rs.1,004 crore for the quarter ended March 2017-18. This is the first time it crossed the Rs.1,000 crore mark. Meanwhile, net profit (after minority interest) on like-to-like basis grew by 44% year-on-year basis from Rs.573 crore to Rs.824 crore. Aditya Birla plans to raise up to Rs.3,500 crore through preference shares, equity, and debt instruments.
- The company’s consolidated revenue for the quarter ended March 2017-18 increased 21% over the prior year, to Rs.13,428 crore from Rs.11,071 crore. Similarly, the consolidated earnings before tax (EBT), saw a hike of 35% over the prior year, to Rs.1,554 crore from Rs.1,150 crore. EBT growth for the health insurance business it recently launched was 41% over the prior year.
- Among mutual funds in India, the company ranks third. Average Assets under management of the company was at Rs.2,67,739 crore, up by 27% year–on-year. The company’s domestic market share stands at 10.75% while the equity market share stands at 9.2%. In 2017, Aditya Birla Capital received a license to set up an asset reconstruction company.
AB Capital Stock Trends in 2018
- On January 1, 2018 the price of the stock was Rs.184 on NSE. It changed only marginally throughout the month. The closing price of the stock on January 31, 2018 was Rs.170. It continued to fall in the month of February as well as March. By the end of March, the stock price had fallen to Rs.148.
- However, the stock picked up in April and was at Rs.158 by the end of the month. In May 2018, the stock continued its downfall and was at Rs.148.
AB Capital Stock Trends in 2017
- Aditya Birla Capital's shares made their debut on the exchanges in September 2017. The opening price of the stock on September 1, 2017 was Rs.250. The price kept falling throughout the month and was Rs.177 by the end of the month. In the month of October, the price of the stock changed marginally. The closing price of the stock on October 31, 2018 was Rs.179.
- In the month of November, the stock gained some strength and crossed the Rs.200 mark. The company posted a loss of Rs.1.64 crore in Q2. In December, the price of the stock continued the downfall throughout the month. The closing price of the stock on December 31, 2018 was Rs.185.
Should you invest in AB Capital?
- AB Capital is a new entrant in the stock market, hence, it is too soon to understand the behaviour of the stock. However, Aditya Birla Capital has showcased immense growth in the past ten years with an impressive diversified portfolio.
- However, it is strongly suggested that you do your own research before investing in the markets.
ABCL is the holding company of all the financial services businesses of the Aditya Birla Group. It was formerly known as Aditya Birla Financial Services Limited. It offers finance solutions like housing finance, mutual funds, asset management, private equity, real estate funding, SME finance, corporate lending, general insurance broking, wealth management, pension fund management, and health insurance business. Aditya Birla Group operates in 36 countries across the globe. About 50 percent of its revenues flow from its overseas operations.
History of the Company
ABFL was incorporated in October 2007 under the Companies Act 1956. In May 2009, the company received the certificate of registration from the Reserve Bank of India to start the business as non-deposit taking NBFC. In December 2014, Aditya Birla went from being a private limited company to a public one, and became ‘Aditya Birla Financial Services Limited’. The company became a pure play listed holding company of all the financial services businesses of the Aditya Birla Group and was therefore rechristened as ‘Aditya Birla Capital Limited’ in June 2017.
Management of the Company
Mr. Kumar Mangalam Birla - Chairman and Non- Executive Director
Mr. Kumar Mangalam Birla is the Chairman of the $ 41 billion multinational Aditya Birla Group, operating in 36 countries across 6 continents. He chairs the boards of some of the major companies in India and across the globe. Mr. Birla is a Chartered Accountant and has earned an MBA from the London Business School. He is a Commerce Graduate from the Bombay University.
Mr. Ajay Srinivasan - Chief Executive Officer (CEO)
Ajay joined the Aditya Birla Group in 2007. He has experience of over 3 decades in the financial services industry. Prior to joining the Aditya Birla Group, Mr. Ajay was Chief Executive - Fund Management at Prudential Corporation Asia between January 2001 and July 2007. He is an alumnus of Indian Institute of Management, Ahmedabad and completed B.A with Honours in Economics from St Stephen's College, University of Delhi.
Listings in NSE, BSE, and Indices
The stock of ABB India are available for trading on the two major stock exchanges of India - The National Stock Exchange Limited (NSE) and Bombay Stock Exchange (BSE).
Sector: Finance - Investment
The company forms a part of important indices like:
- Nifty 100
- Nifty 500
- Nifty 200
- Nifty Next 50
One Indiabulls Centre, Tower 1,
18th Floor, Jupiter Mills Compound,
841, Senapati Bapat Marg,
Elphinstone Road, Mumbai 400013
+91 22 4356 7000
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