I am holding Aditya Birla Capital which I bought at around Rs.120 at higher levels last year. After the latest results, can I hold on to the stock or exit?

How the results of Aditya Birla Capital panned out?

For the March quarter, Aditya Birla Capital reported 52% jump in net profits to Rs.258 crore. Aditya Birla Capital represents all the financial market interests of the Aditya Birla group and it includes the NBFC business, the asset management and the insurance businesses. The company also posted a full year profit of Rs.871 crore, up by 25% from last year. Both the core segments of NBFC and asset management saw solid growth in the last quarter.

Should you look to hold or A B Capital at current prices?

We do see the company gradually emerge as a powerful hub of all the financial activities of the Aditya Birla Group and from that perspective it could still be fairly undervalued at the current price. One can argue that P/E ratio is too steep but this is a business that is still growing. One must stick to a company like AB Capital only if they can stay for the long haul. Short term may be quite disappointing for traders; and also too volatile.