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44

@RajeevJ Sir, Please guide us for the key monitorable which can be tracked to visualize the story of ABM

Aditya Birla Money Limited raises Commercial Paper (CPs) to build a wholesale debt market (WDM) book (holding duration of seven-to-10 days) and carries out margin trade financing(MTF), which are short-term products (average 30 days) and can be liquidated at a short notice for repayments during a challenging operating environment.https://www.nseindia.com/market-data/debt-private-placement/corporate-filings?company_name=Aditya%20Birla%20Money%20Limited

(in Crores) 31-Dec-24 30-Sep-24 30-Jun-24 31-Mar-24 31-Dec-23 30-Sep-23 30-Jun-23 31-Mar-23
CP Sanction ₹ 2,000 ₹ 1,750 ₹ 1,750 ₹ 1,750 ₹ 1,500 ₹ 1,500 ₹ 1,000 ₹ 1,000
Total Borrowings o/s ₹ 1,753 ₹ 1,508 ₹ 1,382 ₹ 1,375 ₹ 1,185 ₹ 1,087 ₹ 1,004 ₹ 876
a) Wholesale Debt Market 677 ₹ 517 ₹ 590 ₹ 449 ₹ 455 ₹ 395 ₹ 449 ₹ 407
b) Margin Trade Financing ₹ 1,075 ₹ 991 ₹ 791 ₹ 926 ₹ 729 ₹ 692 ₹ 555 ₹ 469

ABML is active in the wholesale debt market where it has tie-ups with over 1,000 provident funds generally holding ‘AAA’ rated and sovereign securities. ABML intends to maintain this book with ‘AA’ and above rated securities at around 80% of portfolio and below ‘AA’ rated securities at 20% with rating floor of ‘A’ and a marked to market loss cut-off of INR10 million on the wholesale debt market portfolio as a prudent internal risk management policy.

a) Wholesale Debt Market 31-Dec-24 30-Sep-24 30-Jun-24 31-Mar-24 31-Dec-23 30-Sep-23 30-Jun-23 31-Mar-23
Sales ₹ 18 ₹ 23 ₹ 19 ₹ 13 ₹ 11 ₹ 12 ₹ 15 ₹ 12
Profit before tax ₹ 5 ₹ 11 ₹ 7 ₹ 3 ₹ 2 ₹ 4 ₹ 6 ₹ 4
% Margin 30% 48% 37% 23% 18% 33% 40% 33%

ABML maintains adequate filters for its margin trading business with a pre-defined limit monitoring on a real-time basis, and customer-based risk limits are set to monitor the customers’ online trading executions, with the monitoring of the availability of adequate margin cover for each trade executed by them. The securities selected for margin trade financing are highly regulated for the extent the securities purchase could be funded, along with a collateral cover which needs to be maintained. The company is likely to increase the share of revenues from its margin trade financing book, given the pricing pressures in the brokerage business.

b) Broking (inc MTF) 31-Dec-24 30-Sep-24 30-Jun-24 31-Mar-24 31-Dec-23 30-Sep-23 30-Jun-23 31-Mar-23
Sales ₹ 98 ₹ 104 ₹ 101 ₹ 103 ₹ 91 ₹ 86 ₹ 64 ₹ 58
Profit before tax ₹ 25 ₹ 25 ₹ 15 ₹ 17 ₹ 17 ₹ 13 ₹ 7 ₹ 6
% Margin 26% 24% 15% 17% 18% 15% 11% 10%
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45

There are many great books which are not as difficult read. Psychology of Money, for one. Then Little Book that Beats the Market. Parag Parikh’s books. Richer, Wiser, Happier is the best of them to me.
I have some soft copies, which I can send you on email/whatsapp.

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46

@RajeevJ

Hello Rajeev ji,

Hope your smallcaps haven’t crashed since January—mine keep doing that, all thanks to my “buy high, sell low in panic” talent! :sweat_smile: Still stalking your wisdom here like a value hunter in a meme-stock jungle.

What theme & names are intriguing you these days? Any stocks you’ve been delving into or added recently? Would value your thoughts.

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