Aditya Birla Group Stocks List: Who Has The Best Return On Equity Currently?

Aditya Birla Group Stocks List: An Overview

Aditya Birla group plays a key role in shaping various industries as well as the economy of the country. It is now a $46 billion conglomerate with 130 manufacturing units across 36 countries and 6 continents. The company has diversified interests in various industry sectors such as Textile, Mining, Metals, Carbon black, Financial service, Renewable, trading, Pulp & Fibre, Apparel, chemicals, insulator, etc. 

The group ranks at the top in aluminum rolling, viscose staple fiber, carbon black, and cement( Except in China)in the world. Moreover, it ranks at the top in cement, caustic soda, fashion retailing, and high-performance insulators.  In this article, we are going to learn about the Aditya Birla group companies' list

About Aditya Birla Group

Shri. Seth Shiv Narayan Birla was the person who laid the foundations of the Aditya Birla group in the 19th century. He started his business by trading cotton and within a few years, the business saw excellent growth. 

Aditya Birla Group is one of the biggest and oldest conglomerates in India. It is involved in many industry sectors including cement, telecom, textiles, metal, etc. It is a multinational company that is spread over 36 countries. 

In the early 20th century, the founding father of the Aditya Birla group, Mr. Ghanshyam Das Birla set up industries in different sectors including chemicals, textiles, cement, fiber, and aluminum. Moreover, Mr. GD Birla was one of the pioneers of the business world and he also shifted the Birla group’s base to Calcutta. He set up many companies and educational institutions including UCO Bank, Hindalco, Hindustan Motors, and BITS Pilani. 

In the 1960s, the grandson of GD Birla, Aditya Birla took control of the business. He expanded the business internationally across Southeast Asia and Egypt. He took the business to greater heights than ever before. Currently, Kumar Mangalam Birla is leading the business. 

Aditya Birla Group Stocks List: Financials

(Data as of 24th November 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Aditya Birla Group Listed Companies

Aditya Birla Capital Limited (ABCL)

The company is the holding company of the Aditya Birla group for financial services. It provides a wide range of financial solutions to meet the different financial needs of diverse customers. The CEO of the company is Vishakha Mulye and was founded in 2007 its parent company is Grasim Industries. They have a presence in various sectors including asset management, health insurance, non-banking financial company, general insurance, pension fund management, wealth management, online broking, and life insurance. 

It has over 1,048 branches and 2,00,000 agents across India. Moreover, they have received a license from the RBI to set up an Asset reconstruction company. The company has delivered profit growth of 25.6% CAGR over the last 5 years. However, the company is not paying out dividends and has a low-interest coverage ratio. So, you need to analyze the fundamentals of the company properly, if you are investing in the stock for the long term. 

Aditya Birla Fashion and Retail Limited 

Aditya Birla Fashion and Retail Limited (ABFRL) is engaged in the business of branded apparel. ABNL’s Madura fashion division, Madura Fashion & Lifestyle (MFL), and ABNL’s subsidiaries Pantaloons Fashion and Retail (PFRL) are part of the Aditya Birla Group. They have over 120,000 employees and its business is spread in 34 countries around the world. 

The stock is trading at 8.12 times its book value and has a low return on equity of -15.8% over the last 3 years. The stock price CAGR is 12% and the return on equity is -16% over the last 3 years. It is expected that the company will give good returns in the next quarter. However, the promoters of the company have decreased their holdings by -3.01% over the last 3 years. 

Grasim Industries Limited 

Grasim Industries Limited is a part of the Birla group companies list. They deal in the business of rayon-grade wood pulp (RGWP) with plants, caustic soda, viscose staple fiber (VSF), and specialty chemicals at various locations. The company has given profit growth of 19.5% CAGR over the last 5 years. 

The compounded sales growth of the company is 20% and compounded profit growth is 19% over the last 5 years. The stock price CAGR is 13% and Return on equity is 8% over the last 10 years. 

Hindalco Industries Limited 

The company was established in 1958 and is part of the Birla group of companies. It produces copper and aluminum. They manufacture aluminum sheets, extrusion, and light gauge products for use in packaging markets such as foil products, food, and beverages. The company is listed both on NSE and BSE. The stock is trading at 1.07 times its book value and has given decent profit growth of 47.5% CAGR over the last 5 years. It is expected that the company will give good results in the next quarter. The top peers are Arfin India, PG Foils, and Natl. Aluminum, MMP Industries, Euro Panel. The compound sales growth is 14% and the compound profit growth is 48% over the last 5 years. The stock price CAGR is 11% and the return on equity is 10% over the last 5 years. 

UltraTech Cement Limited

Ultratech Cement is popular in every household. It engaged in manufacturing cement and cement-related products. The company is listed on both stock exchanges: NSE and BSE. It has reduced its debt and has given decent profit growth of 21.9% CAGR over the last 5 years. The top peers of the company are Ambuja cement, J K cements, Nuvoco Vistas, Shree cement, and ACC. The compounded sales growth is 11% and compounded profit growth is 12% in the last 10 years. the stock price CAGR is 14% and the return on equity (ROE) is 13% over the last 10 years. 

Vodafone Idea Limited 

The company is a leading provider of telecom services in India. It deals in the business of long-distance services, data cards, Mobility, and trading of handsets. The company is listed on both leading stock exchanges: NSE and BSE. The top peers of the company are Bharti Airtel, Indus Towers, Tata Communications, and MTNL. The sales growth of the company is declining and the interest cover ratio is -0.34. The promoters of the company held 74.99%, FII held 3.53% shares, the public held 20.8% shares, and DII held 0.68% shares. Moreover, they have an efficient cash conversion cycle of 23.08 days. 

(All the above data is as of 24th November 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

Conclusion

Now that you know the list of Birla group companies and their fundamentals, you can add these Birla group of companies to your portfolio. However, make sure to read the financials of the companies, and fundamental ratios, and understand the business model, cash flow statement, and management. You can find all this information in the annual report of the company. Also, analyze your investment objectives, risk tolerance, annual income, and timeline of your investments. 

This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.