Aditya Birla SL Medium Term Plan(IDCW)
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Business Overview
The Aditya Birla SL Medium Term Plan (IDCW) is a well-structured mutual fund designed for investors seeking moderate growth with a balanced risk approach. Ideal for individuals looking to invest for a medium-term horizon, this plan aims to provide steady returns while maintaining capital safety. It focuses on a diversified portfolio that includes equities and fixed-income securities, making it suitable for both new and seasoned investors.
- Designed for medium-term investors
- Balanced risk with potential for growth
- Diversified portfolio across asset classes
- Managed by experienced professionals
- Focus on capital safety and steady returns
Investment Thesis
Aditya Birla SL Medium Term Plan stands out due to its robust promoter backing, significant growth potential in digital services, and attractive valuation compared to peers. This combination positions it as a compelling investment opportunity for retail investors seeking stability and growth.
- Strong credibility from the Aditya Birla Group, a well-established player in the financial services sector.
- Expanding digital services portfolio, tapping into the growing demand for tech-driven financial solutions.
- Attractive valuation metrics compared to industry peers, offering potential for higher returns.
- Focus on medium-term growth aligns with retail investors' objectives for steady income and capital appreciation.
- Proven track record of fund management enhances investor confidence.
Peer Perspective
Aditya Birla SL Medium Term Plan trades at a slight premium to peers like HDFC Mutual Fund and ICICI Prudential. A sustained improvement in margin stability could trigger a rerating, enhancing its appeal to investors.
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10BusinessHighThe sector is moderately future-ready with some competitive advantages.
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10GrowthHighRevenue and profit growth has been inconsistent over recent quarters.
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10ProfitabilityHighROE and ROCE are acceptable but OCF is lower than net profit.
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8ValuationHighValuation metrics are slightly above peers, indicating potential overvaluation.
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6BalanceGoodDebt levels are manageable but liquidity could be improved.
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7GovernanceHighPromoter holding is strong, but some pledging exists.
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5DriversGoodGrowth drivers are limited with execution risks present.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.