Buy Aditya Birla Capital, target price Rs 164: HDFC Securities
Aditya Birla Capital Ltd., incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 22992.21 Crore) operating in NBFC sector.
By ETMarkets.com | Updated:
Agencies
HDFC Securities has buy call on Aditya Birla Capital Ltd. with a target price of Rs 164. The current market price of Aditya Birla Capital Ltd. is Rs 96.8. 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 22992.21 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
A year since articulating its ambitious FY24 roadmap, ABCL’s journey to drive consolidated return ratios closer to franchise potential seems on track, with consistent execution across businesses. The lending businesses have gradually been repositioned towards retail and granular loans (two-third of NBFC AUM is towards Retail + SME + HNI; 38% of the HFC AUM is towards affordable segment), which is reflecting in sustained improvement in franchise earnings. The insurance businesses continued to build their profitability trajectory - the LI business, alongside healthy growth, witnessed better net VNB margin at 15%, while the HI business is expected to break even over the next couple of quarters. The brokerage maintains BUY on ABCL with an SOTP-based TP of INR164.
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.
Aditya Birla Capital Ltd., incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 22992.21 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
A year since articulating its ambitious FY24 roadmap, ABCL’s journey to drive consolidated return ratios closer to franchise potential seems on track, with consistent execution across businesses. The lending businesses have gradually been repositioned towards retail and granular loans (two-third of NBFC AUM is towards Retail + SME + HNI; 38% of the HFC AUM is towards affordable segment), which is reflecting in sustained improvement in franchise earnings. The insurance businesses continued to build their profitability trajectory - the LI business, alongside healthy growth, witnessed better net VNB margin at 15%, while the HI business is expected to break even over the next couple of quarters. The brokerage maintains BUY on ABCL with an SOTP-based TP of INR164.
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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.
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