Aditya Birla Capital: SEBI RA Deepak Pal Says Wait For Dip Before New Entry

Aditya Birla Capital is drawing interest from investors as it continues a nine-week rally backed by steady earnings and strong technical signals.

SEBI-registered research analyst Deepak Pal shared his view on the stock’s current setup and fundamental outlook.

Pal pointed out that AB Capital has been putting up solid numbers, growing its revenue by 18% and earnings by 29% annually in recent years. 

He said the company is running a tight ship, with healthy margins—11% net and over 36% core profit—and returns of around 11% on equity and 10% on capital employed.

He also noted that the stock trades at about 21 times earnings, which looks fair when stacked against the sector average of 36. 

While its debt-to-equity ratio is high at 4.5x, Pal said that's par for the course for NBFCs, and Aditya Birla Capital has managed to stay steady thanks to its strong brand and broad-based financial services model.

On the technical front, Pal said the stock has been on a strong upward trend, trading well above its 14-, 55-, and 200-day exponential moving averages (EMAs). 

He pointed out that it is also taking support near the 50- and 200-day moving averages, indicating sustained strength.

Technical indicators are also in favor of bulls, according to Pal. 

He noted that the MACD is showing positive momentum, and the relative strength index (RSI) on the weekly chart is hovering near 80, reflecting strong momentum but also signaling overbought conditions.

Pal advised that investors holding positions may continue to do so, targeting ₹300–₹310 in the near term. 

For new investors, he suggested waiting for a dip towards ₹240–₹250, with a stop-loss near ₹220.

On Stocktwits, retail sentiment was ‘bearish’ amid ‘normal’ message volume.

The stock has risen 54% so far in 2025.

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