Aditya Birla Money Limited

Financial Services — Capital Markets · NSE

₹112.00−₹2.45 (−2.14%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Aditya Birla Money Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Aditya Birla Money Limited provides financial services in India. The company operates through three segments: Broking, Wholesale Debt Market, and Others.

IndustryCapital Markets

SectorFinancial Services

Employees885

Annual revenue₹427 Cr

How does it make money?

Turns over ₹427 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹54 left at the operating level before interest, tax and depreciation. Each of its 885 employees supports ₹48.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹48.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.7%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +70% while net margin moved +1% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+70%

Margin effect+1%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.46 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

72/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

81/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

11.7x

3Y Median

16.0x

40 monthly readings · mean 15.7x · range 7.4x–28.8x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 27% below its 3y median of 16.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 80% below the peer median of 58.4x.

vs. its own history

Cheap

16.0x median over 40 months · -27%

vs. sector peers

Cheap

58.4x median of 3 peers · -80%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

11.5x

PEG

0.59

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 40.9% to 53.8% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 31.1% to 19.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 42.6% to 38.4% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 137% against revenue growth of 70% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 40.9% to 53.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 27% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 80% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 31.1% to 19.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 15% a year✓ 19.4% CAGR
Latest reported year was 19.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 52%✓ 53.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 17%✓ 18.6%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 16.0x✓ 11.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

8 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹633 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.7x

Cheap

Cheap against the generic band

P/B Ratio

1.96x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.6

Profitable

Profitable on a per-share basis

ROE

18.6%

Strong

Strong capital efficiency

ROCE

38.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

7.45x

High

High leverage

Revenue Growth (YoY)

19.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

7.2%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹325 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

1.9%

Weak

Assets generate little profit

Operating Margin

16.8%

Good

Healthy core-business profitability

Net Margin

15.4%

Good

Strong bottom-line conversion

Current Ratio

1.07

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.46

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

116.5 / 123.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹251 Cr	₹360 Cr	₹407 Cr	₹427 Cr	+19.4%
EBITDA	₹103 Cr	₹168 Cr	₹237 Cr	₹230 Cr	+30.8%
EBITDA Margin	40.9%	46.5%	58.1%	53.8%	—
PAT (Net Profit)	₹34 Cr	₹53 Cr	₹74 Cr	₹58 Cr	+19.9%
EPS	₹6.01	₹9.37	₹13.13	₹10.35	+19.9%
ROE	31.1%	32.6%	31.4%	19.5%	—
ROCE	42.6%	49.8%	57.6%	38.4%	—
Total Debt	₹813 Cr	₹1,307 Cr	₹1,605 Cr	₹2,101 Cr	+37.2%
Free Cash Flow	-₹84 Cr	-₹453 Cr	-₹133 Cr	-₹325 Cr	—

🟢 Revenue has grown at 19.4% a year over 3 years.

🟢 EBITDA has grown at 30.8% a year over 3 years.

🟢 EBITDA Margin has risen from 40.9% to 53.8% over 3 years (+12.8 pts).

🟢 PAT (Net Profit) has grown at 19.9% a year over 3 years.

🟢 EPS has grown at 19.9% a year over 3 years.

🔴 ROE has fallen from 31.1% to 19.5% over 3 years (-11.6 pts).

🔴 ROCE has fallen from 42.6% to 38.4% over 3 years (-4.2 pts).

🔴 Total Debt has grown at 37.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,466 Cr

Total Liabilities

₹3,166 Cr

Cash & Equivalents

₹98 Cr

Operating Cash Flow

-₹317 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.5%

Corporate Actions

Ex-Dividend Date

05 Sept 2008

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

2 positive2 mixed2 general

Aditya Birla Money announces 30th AGM, e-voting dates

scanx.trade, 13 Oct

Aditya Birla Money Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Aditya Birla Money's (NSE:BIRLAMONEY) earnings growth rate lags the 23% CAGR delivered to shareholders

Simply Wall Street, 21 JanResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Aditya Birla Money Q4 profit surges over two-fold to Rs 19 cr

Business Standard, 18 AprResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Aditya Birla Money Q2FY27 net profit rises 7.4% YoY to ₹108.93 crore

scanx.trade, 14 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Why Is Aditya Birla Money Share Price Falling Key Reasons 2026

Univest, 03 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Valuation

MiddlingFinancial Health · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑