Aditya Birla Money: PAT growth of 73% & Revenue growth of 50% in Q1-25 at PE of 17

BIRLAMONEY delivered PAT CAGR of 45% & Revenue CAGR of 24% for FY20-24. BIRLAMONEY in the middle of a strong run since Q4-23 delivering QoQ growth. Absence of management commentary is a challenge

Jul 18, 2024

1. Equity & derivatives broking services; Portfolio Management Services

stocksandsecurities.adityabirlacapital.com | NSE : BIRLAMONEY

Aditya Birla Money Ltd (ABML) is present in equity broking, commodity broking, depository services, PMS (portfolio management services) and distribution of products like mutual funds, insurance and loans of Aditya Birla group companies.

Aditya Birla Capital Ltd, the holding company for the financial services business of the Aditya Birla Group, is the promoter of BIRLAMONEY.

2. FY20-24: PAT CAGR of 45% and Revenue CAGR of 24%

3. Strong FY24: PAT up 56% & Revenue up 48% YoY

4. Strong Q1-25: PAT up 73% & Revenue up 50% YoY

PAT down 1% & Revenue up 3% QoQ

5. Business metrics: Strong return ratios

6. Outlook: Expecting continuation of FY20-24 trend

No management commentary is available on BIRLAMONEY
In the absence of management commentary one is expecting the continuation of the long term trend of PAT CAGR of 40%+ as delivered during FY20-24.

7. PAT growth of 73% & Revenue growth of 50% in Q1-25 at a PE of 17

8. So Wait and Watch

If I hold the stock then one may continue holding on to BIRLAMONEY

BIRLAMONEY has delivered the strongest top-line and PAT in FY24 and followed it up with an equally strong Q1-25
BIRLAMONEY is in the middle of a strong run. Since Q4-23, BIRLAMONEY has delivered QoQ and YoY growth in the top-line. One should stay in as long as this trend continues.

11. Or, join the ride

If I am looking to enter BIRLAMONEY then

BIRLAMONEY has delivered PAT growth of 73% & Revenue growth of 50% in Q1-25 at a PE of 17 which makes valuations quite attractive.
Outlook for 40% PAT growth in FY25 based on historic FY20-24 PAT CAGR of 40%+ at a PE of 16 makes the valuations quite attractive from a longer term perspective.
In the absence of management commentary, the key question is will the performance of BIRLAMONEY in FY24 carry into FY25. Based on Q1-25 performance there exists potential for returns in this stock idea.