1. At a Glance
A mid-cap broking arm of the mighty Aditya Birla empire—Aditya Birla Money Ltd (ABML)—has been quietly compounding profits with 44% CAGR over 5 years. Yet, it behaves like that stingy uncle who never brings sweets—zero dividend. Should this broking biz be in your watchlist or blacklist?
2. Introduction with Hook
Imagine being invited to Ambani’s party but only getting Marie biscuits and tap water.
That’s Aditya Birla Money.
- 5-year Profit CAGR: 44.2%
- Return on Equity: 37%
- Dividend paid in the last 10 years: 0%
Despite being part of the Aditya Birla universe and operating in multiple financial verticals—stockbroking, PMS, research, depository, insurance e-holding—ABML prefers hoarding cash like a startup burning VC funds.
3. Business Model (WTF Do They Even Do?)
Let’s decode this layered sandwich:
| Segment | Role |
|---|---|
| Stockbroking | BSE/NSE equities & F&O for retail and HNIs |
| PMS | SEBI-licensed Portfolio Management Services |
| Depository | DP with both NSDL & CDSL |
| Commodity Broking | Member of MCX & NCDEX |
| Research + Advisory | SEBI RA + IA license; ARN from AMFI |
| Insurance Repository | Registered e-Repository with CDSL to hold insurance in demat format |
Basically, if it’s tradable or insurable, they’ve got a license for it. Think of them as the Swiss Army knife of Indian capital markets—just not as glamorous.
4. Financials Overview
Revenue & Profit Growth
| Year | Revenue (Cr) | Net Profit (Cr) | EPS (₹) | OPM % |
|---|---|---|---|---|
| FY21 | ₹192 | ₹16 | ₹2.80 | 27% |
| FY22 | ₹233 | ₹26 | ₹4.64 | 30% |
| FY23 | ₹267 | ₹34 | ₹6.01 | 35% |
| FY24 | ₹395 | ₹53 | ₹9.37 | 43% |
| FY25 | ₹453 | ₹74 | ₹13.13 | 51% |
| TTM | ₹444 | ₹73 | ₹12.95 | 51% |
- 5Y Profit CAGR: 44.2%
- 5Y Sales CAGR: 22%
- Debt? LOL, ₹1,703 Cr borrowings now vs ₹20 Cr in 2014.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹185 |
| EPS (TTM) | ₹12.95 |
| P/E | 14.3x |
| Book Value | ₹41.8 |
| Price / Book | 4.43x |
| ROE | 37.2% |
Valuation Range (Fair Value Estimate):
- DCF-based FV Range: ₹160 – ₹230
- Peer P/E Benchmarking Range: ₹145 – ₹210
- Blended EduInvesting FV Range™: ₹165 – ₹225
Verdict? You’re not overpaying, but you’re also not buying a candy store.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 PAT: ₹15.37 Cr (flat YoY, margin improvement)
- Major New Appointments (July 2025): New CTO, Portfolio Head—revamp alert!
- Rising Borrowings: ₹1,703 Cr debt—someone’s buying more than stocks.
Trigger Alert:
Any synergy rollout under Aditya Birla Capital umbrella or dividend announcement can send this flying.
7. Balance Sheet
| Year | Equity (Cr) | Reserves (Cr) | Borrowings (Cr) | Total Assets (Cr) |
|---|---|---|---|---|
| FY20 | ₹6 | ₹26 | ₹244 | ₹548 |
| FY23 | ₹6 | ₹104 | ₹900 | ₹1,363 |
| FY25 | ₹6 | ₹230 | ₹1,703 | ₹2,471 |
Key Takeaways:
- Reserves 9x in 5 years.
- Debt ballooned 7x—probably to fund working capital or PMS operations.
- Fixed Assets? Just ₹39 Cr. It’s all intangible hustle.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash Flow |
|---|---|---|---|---|
| FY23 | -₹77 | -₹4 | ₹106 | ₹26 |
| FY24 | -₹444 | -₹4 | ₹402 | -₹45 |
| FY25 | -₹126 | -₹1 | ₹173 | ₹46 |
Interpretation:
Cash from Ops is negative—again. Classic broking biz: float-heavy, debt-happy, asset-light.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE (%) | 37.2 |
| ROCE (%) | 13.1 |
| Debt/Equity | 7.38 |
| P/E | 14.3 |
| Book Value | ₹41.8 |
| Debtor Days | 24 |
- ROE Sexy, ROCE Meh, Debt Yikes
10. P&L Breakdown – Show Me the Money
| Metric | FY25 |
|---|---|
| Revenue | ₹453 Cr |
| Operating Profit | ₹229 Cr |
| Operating Margin | 51% |
| Net Profit | ₹74 Cr |
| EPS | ₹13.13 |
11. Peer Comparison
| Company | P/E | ROE % | Market Cap (Cr) | OPM % | CMP/BV |
|---|---|---|---|---|---|
| Motilal Oswal | 22.3 | 25.2 | ₹56,000 | 54.5 | 5.05 |
| Angel One | 20.7 | 27.1 | ₹24,256 | 37.8 | 4.3 |
| Nuvama Wealth | 26.7 | 30.8 | ₹26,348 | 53.3 | 7.54 |
| 360 ONE | 44.6 | 20.6 | ₹48,266 | 60.8 | 6.64 |
| Aditya Birla Money | 14.3 | 37.2 | ₹1,045 | 51.0 | 4.43 |
Conclusion: Valuation laggard with profitability swagger.
12. Miscellaneous – Shareholding, Promoters
| Category | June 2025 |
|---|---|
| Promoter | 73.53% |
| FII | 0.03% |
| DII | 0.05% |
| Public | 26.37% |
| Shareholders | 43,006 |
- Promoters are stable.
- No big institutions yet—still under the radar.
13. EduInvesting Verdict™
Aditya Birla Money Ltd is your classic underrated cousin in the Aditya Birla family—competent, hardworking, but not invited to weddings.
- Strong ROE? ✅
- Clean P&L growth? ✅
- Cash flow worries? Also ✅
- Dividend? You wish.
- High debt? Check.
If you’re looking for a broking play that’s profitable and underappreciated, ABML checks the boxes—just don’t expect freebies (dividends) or love letters (media coverage). It’s a “wait-and-watch-the-numbers-compound” stock.
Metadata
– Written by EduInvesting Research | 12 July 2025
– Tags: Aditya Birla Money, Broking Stocks, Smallcap Finance, PMS Business, Indian Capital Markets
