Kirloskar Brothers & Aditya Birla Money
Aditya Birla Money
Aditya Birla Money is an Aditya Birla Group company working in the capital market segment. They are engaged in the broking of share, commodity, derivative etc. As we know, the brokerage companies are struggling. Sales turnover is decreasing. But this is not good to give up the entire sector. Finding quality companies is really challenging even for experienced investors. Here is a company named Aditya Birla Money. No doubt, the management can be believed. They are very careful for wealth creation. We think the coming decade will be very good for broking companies. Let us check the fundamentals of the firm.
Company’s market cap is just near Rs 125 Cr. Book value is 8.21. Company reported a net loss of 7.12 Cr in the first quarter FY 2012. Company’s net profit in the first quarter FY 2011 was Rs 2.77 Cr. Company’s sales turnover in the first quarter FY 2012 was Rs 16.26 Cr. Company’s sales turnover in the first quarter FY 2011 was Rs 25.51 Cr. Big decline can be seen in both sales and net profit. The entire sector is in a very weak state. Aditya Birla Group is ready to utilize the opportunities. Company’s annual sales in the FY 2011 were near Rs 100 Cr. So the company is in attractive valuation. Company is trading in the levels of Rs 25. If you can wait for a time frame of five years can earn a lot of money through investment.
It is world’s leading manufacturer, supplier, and exporter of different pumps. They are also manufacturing AC Electric Motors and Hydro Power Turbines. Company reported a sales turnover of almost Rs 430 Cr in the first quarter FY 2012. Company’s sales turnover in the first quarter FY 2011 was Rs 390 Cr. Smart sales growth can be seen. Company’s net profit in the first quarter FY 2012 Was Rs36.2 Cr. It was only Rs 4.45 Cr in the first quarter FY 2011. Imagine the percentage of increase.
Company’s market cap is Rs 1197 Cr. Book value is 93.7. Price/Book value ratio is 1.61. Company’s P/E stands at 12.87. Industry P/E is 14.44. It is clear that the P/E is below the industry P/E. So the company is in attractive valuation. Company’s annual sales in FY 2011 was near Rs 2000 Cr. So the company is available at half of the annual sales. We can see value in this counter. The entire market is in a correction path. Company is trading near Rs 150. Company may correct according to the market. But this is a clear buy for long term investors.