At a glance
Aditya Birla Money Ltd, a stockbroking arm of Aditya Birla Capital, has quietly grown its profit from ₹5 crore in FY20 to ₹74 crore in FY25 — a 13x leap. Revenue doubled. ROE stayed in the 30s. But dividend? Still stuck at zero. Should investors clap, or clap back?
1. 🏢 About the Company
Aditya Birla Money Ltd (ABML) is a one-stop capital markets player with:
- Stock broking licenses on both NSE and BSE (Equity + Derivatives)
- PMS (Portfolio Management Services) via SEBI registration
- Depository services via NSDL & CDSL
- Research & advisory with SEBI license
- Commodity trading via MCX & NCDEX
- Insurance e-repository status via CDSL
It’s essentially the Swiss Army knife of retail financial services, tucked under the Aditya Birla Capital umbrella.
2. 👨💼 Key Managerial Personnel (KMP)
- Ajay Srinivasan (Non-Executive Chairman, until recently leading Aditya Birla Capital)
- Rakesh Singh – Director & key capital markets veteran
- Sundararajan Venkatesan – CFO, steered cost discipline & margin expansion
No CEO-level headlines, but quietly managed growth via tech upgrades, client onboarding, and margin improvement.
3. 📊 Financial Performance (FY21–FY25)
Revenue (₹ Cr)
| Year | Revenue |
|---|---|
| FY21 | 192 |
| FY22 | 233 |
| FY23 | 267 |
| FY24 | 395 |
| FY25 | 448 |
2.3x jump in topline in 5 years. Strongest growth seen post-FY23 with rising client base and higher brokerage per client.
Net Profit (₹ Cr)
| Year | PAT |
|---|---|
| FY21 | 16 |
| FY22 | 26 |
| FY23 | 34 |
| FY24 | 53 |
| FY25 | 74 |
From ₹16 crore to ₹74 crore — a 5-year CAGR of ~42% in PAT.
Operating Margins
| Year | OPM % |
|---|---|
| FY21 | 27% |
| FY22 | 30% |
| FY23 | 35% |
| FY24 | 43% |
| FY25 | 50% |
This is the real mic-drop: Operating margin went from 27% to 50%. Most brokers bleed margins. ABML squeezed gold.
Return Ratios
- ROE has consistently stayed above 35% in last 3 years.
- ROCE recovered to 13% in FY25, despite higher borrowing base.
4. 📈 Forward-Looking Fair Value (FV)
Assumptions:
- FY26E PAT: ₹95 crore
- PE range: 15x–20x (discount to peers due to low dividend and scale)
- FV Range = ₹1,425 Cr to ₹1,900 Cr market cap
- No. of shares = ~5.63 Cr
- Fair Value per share = ₹253–₹337
Current CMP = ₹183 → So there’s upside potential of 38–84%.
5. 🚀 Industry Outlook & Growth Triggers
- Massive tailwinds in retail investing post-Zerodha-Angel One boom.
- Clients want platform + advisory + PMS — ABML fits the mold.
- Still underpenetrated in tier-2/3 towns.
- Grasim’s mega financial plans might unlock capital market synergies.
- Rising interest income via margin funding + float.
6. 🧠 EduInvesting Take
This is the classic “beta” stock in a multibagger market.
Aditya Birla Money:
- Has grown silently
- Remains ignored by analysts
- And has delivered clean, consistent numbers
But it still doesn’t reward shareholders with dividends.
And scale-wise, it’s a toddler in a park of giants like Angel One, 360 ONE, and Motilal Oswal.
So who should buy this stock?
Someone looking for profitable illiquidity, willing to wait for the Birla group to spotlight this microcap with a solid foundation.
Think of it as the “Sharekhan before it got famous” moment.
7. ⚠️ Risks & Red Flags
- No dividend policy despite profits — raises capital allocation questions.
- Low interest coverage ratio (just 2.5x) — high leverage risk.
- Promoter control >73% — limited float = potential volatility.
- High P/B (4.3x) for a broking business.
TL;DR: Should You Care?
Aditya Birla Money isn’t flashy.
It doesn’t trend on Twitter.
But it’s profitable, growing, and silently climbing.
If you’re looking for:
- Microcap underdog
- With clean growth
- And no noisy hype…
This might just be your slow-burn multibagger.
Or it might just remain a footnote in the Birla empire.
Either way, we’ll be watching.
Author: Prashant Marathe
Date: 13 June 2025
Tags: Aditya Birla Money, Stock Broking, Financial Services, EduInvesting, Multibagger Watchlist, Zero Dividend Stocks
