Buy Aditya Birla Capital, target price Rs 150: Centrum Broking

Centrum Broking has buy call on Aditya Birla Capital with a target price of Rs 150. The current market price of Aditya Birla Capital is Rs 105.75. 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 25660.04 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 31-12-2021, the company reported a Consolidated Total Income of Rs 5714.53 Crore, up 1.97 % from last quarter Total Income of Rs 5604.17 Crore and up 13.56 % from last year same quarter Total Income of Rs 5031.97 Crore. Company reported net profit after tax of Rs 478.68 Crore in latest quarter.

Investment Rationale
ABC has built strong businesses that could better profitability and return ratios. We maintain the core FY24EPS multiple for ABSL AMC at 50x while assign a 2.0x/1.2x multiple on FY24 ANW for ABFL/ABHFL. The brokerage initiates coverage on ABC with a BUY and SOTP based TP of Rs150. Risks: ABSL AMC-lower net flows; ABFL/ABHFL-lower growth and collection efficiency.

Promoter/FII Holdings
Promoters held 71.03 per cent stake in the company as of 31-Dec-2021, while FIIs owned 6.58 per cent, DIIs 7.36 per cent.