Buy Aditya Birla Capital, target price Rs 140: Motilal Oswal

Motilal Oswal has buy call on Aditya Birla Capital with a target price of Rs 140. The current market price of Aditya Birla Capital Ltd. is Rs 93. Time period given by analyst is one year when Aditya Birla Capital Ltd. price can reach defined target.

Aditya Birla Capital Ltd., incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 23172.43 Crore) operating in NBFC sector.

Aditya Birla Capital Ltd. key Products/Revenue Segments include Dividend, Income From Sale Of Share & Securities and Interest for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 6620.15 Crore, up 15.85 % from last quarter Total Income of Rs 5714.53 Crore and up 18.39 % from last year same quarter Total Income of Rs 5591.96 Crore. Company reported net profit after tax of Rs 381.95 Crore in latest quarter.

Investment Rationale
The brokerage expects consolidated PAT to grow at 17% CAGR over FY22-24. The thrust on cross-selling, investments in digital, and leveraging ‘One ABC’ will lead to healthy return ratios, even as it builds in a consolidated FY24 RoE of 12%. It maintains Buy rating, with a SoTP (Mar’24E) based TP of INR140 per share, implying a potential upside of 40%.

Promoter/FII Holdings
Promoters held 71.07 per cent stake in the company as of 31-Mar-2022, while FIIs owned 6.5 per cent, DIIs 8.19 per cent.