@IcyHot … Kindly don’t allege until proven with logic and reasoning.
Words like Corporate Governance issues ??? coming from learned person like you is not fair.
Aditya Birla is a strong management team and ABCL is a
strong play on financialization of savings and low penetration across the
financial services business
The reason why its going through price correction is valuation and once earning catches up it should participate in move.
I was checking the Top public shareholders in moneycontrol and could not see Premji’s stake in there. I remember earlier having seen it. Am I wrong somewhere or has he sold his stake or can you tell me where to check this?
Hello,
Can any learned member comment on the November Life Insurance Data?
ABCL has shown impressive growth compared to peers and was neck/neck with BAJAJ Allianz in terms of APE …
Regards
Please check “PI OPPORTUNITIES FUND I” …
This is the fund name of Premji,
Thanks.
Read carefully, i said corporate governance issue highlighted above which means others before me have already braught it up. i am merely directing attention to it…
Thanks for clarifying.
I request that in future whenever anyone MISGUIDES community ask them upfront for evidence.
Aditya Birla group is known for trust and evidence is in the other listed group companies.
Even the discussion thread is started with word “HIGH QUALITY MANAGEMENT and GOOD CORPORATE GOVERNANCE”
yes but a coin has two sides and we should look and appreciate both sides equally else we are doomed as investors… KMB has not been minority friendly in past by issuing preference shares and diluting equity and by buying novelis at a very high premium and killing minority investors…nobody needs evidence for that. you can do the math yourself. I am not saying ab capital is also same but one has to be wary… Premji is not a minority investor in ABC, 2.54% isca sizable stake, he can call the shots whenever he wants to put his weight around & possibly exit but we the minority investors have to be always vigilant…
There profitability is an issue. They apportion lot of costs to other segment, so most segment looks profitable but this other is place holder for lot of expenses.
So, where bajaj is better than them among number of other thing is cost management, kumarmangalam birla is poor capital allocator and even here he isnt getting most of the shareholder capital and no where comparable to bajaj.
In ICRA’s opinion, ABCL will continue to enjoy strong parentage and financial flexibility by virtue of being a key holding company of Aditya Birla Group.Aditya Birla Capital-T.pdf (281.5 KB)
AB Capital’s 51% subsidiary Aditya Biral health insurance has garnered premium of INR 255.12 cr till nov.Management in Q2 articulated that breakeven is within next 3 year. Earliler they were projecting breakeven in 5 year time.Management seeing oppertunity beyond metro cities.We have seen fierce bidding in this space for Star Health.So this business make sense and today its one of the drag on the AB Capital bottom line. So only time will tell how value will unfold with AB Capital.
https://www.irdai.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo3692&flag=1
Invested in AB Capital:
Thanks for sharing this. Reliagre could also be in deep trouble as parent is under stress.
What caused the huge loss in Q2?. Was it some sort of loss provisioning?. Hope this is not continuing every quarter, this is going to be a major drag. Hopefully there will be value creation over the next 3 years.
For Prem ji. this investment is just peanuts. May be some quid-pro-quo. For small investors, don’t think that there’s a chance to make any money out of this. Won’t give more than 17-20 PE in ongoing market conditions where better companies are available at cheaper valuation…More scope of fall in the stock price.
Agree on valuation but not on peanuts … There is nothing like peanut or cover … Cost of Capital for everyone remains same.
I am sure people who invested in the business would have their own logic and rationale and so do premji.
NBFC due to IL&FS and AMC due to SEBI TER reduction would be under shadow and would linger for a while.
CURRENTLY … on Valuation at PE level its expensive but SOTP is fair.
The business has a runway and 10 year from now would be bigger and better where it is now and that assumption so far holds true. (Obviously subject to timely monitoring of business)
Rest market is there to serve us and not to instruct us 
… (Graham)
Hi,
can any senior guests answer my below query
There are 3 main business of the company
nbfc, life insurance and amc
In life insurance and amc business sunlife canada is 49% partner…which means ab capital has only 51% holding in the main business…
so the pbt which company showed for last 6 months for rs 644 crores is after sunlife canadas 49% share of profit? or we have to remove from this 644 crore there share of profit?
rgds
saumil
disc: invested recently and planning to add more once all doubts are clear
ABCL is definately looking cheap now w.r.t to the opportunity ahead.
I am not a senior investor. But all your assumptions are correct except nbfc and housing finance business in fully owned. PAT is after sunlife part. AB Capital is the holding company for AB Finance AB Housing Finance AB Arc (100% stake) ABS AMC , life insurance , Health insurance has 51% stake.
Have been writing about my portfolio under separate thread Portfolio for 2025 . Go down the thread to check the latest investments.
