GOOD COMPANY TO GROW WITH
The company’s focus on using technology efficiently, client acquisition and increasing business partner network augurs well for the stock
Aditya Birla Money (ABM) is one of those stocks that have delivered spectacular returns to their shareholders. So, while Sensex and Nifty were touching new highs, ABM was quietly outperforming the broader markets.
ABM is in the business of offering investments and trading in stocks and securities through its various affiliations with stock exchanges. It offers portfolio management services to HNI and corporate investors. ABM also caters to investments in debt instruments and mutual funds through it digital platform to diversify asset allocation. As a depository participant, ABM has equity assets under custody worth around ₹25,000 crore, catering to over three lakh investors who hold stocks and securities, mutual funds and Insurance policies in electronic form.
Apart from the investors who have been the biggest beneficiaries of a dream run in the stock market, the stock brokers and mutual fund distributors also stand to benefit from the bullish momentum in equity markets.
The underlying bullish tone of the markets has revived the IPO markets in India and the IPO launches are already touching multi-year highs, which augurs well for companies such as ABM. The retail participation is on the rise through mutual funds, even as the total folio count stands at 5.82 crore in May 2017. The data released by AMFI said that the gross commission earned by mutual fund distributors nearly doubled in the past three years, rising from ₹2,603 crore in FY14 to ₹4,987 crore in FY17.
During FY17, average daily cash market volumes increased to ₹24,000 crore, as compared to ₹20,000 crore in the previous year, as the domestic economic recovery (along with global economic recovery) gained ground and equity emerged as the preferred asset class.
The daily derivatives turnover increased sharply from ₹280,000 crore to ₹380,000 crore. The same can be attributed to the