Buy Aditya Birla Capital, target price Rs 200: Emkay Global

Emkay Global has buy call on Aditya Birla Capital with a target price of Rs 200. The current market price of Aditya Birla Capital is Rs 156.2. Time period given by analyst is a year when Aditya Birla Capital price can reach defined target.

Aditya Birla Capital, incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 37765.09 Crore) operating in NBFC sector.

Aditya Birla Capital key Products/Revenue Segments include Dividend, Income From Sale Of Share & Securities and Interest for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 9662.32 Crore, up 41.40 % from last quarter Total Income of Rs 6833.10 Crore and up 69.08 % from last year same quarter Total Income of Rs 5714.53 Crore. Company has reported net profit after tax of Rs 3225.19 Crore in latest quarter.

The company’s top management includes Mr.Kumar Mangalam Birla, Dr.Santrupt Misra, Mr.Sushil Agarwal, Mr.Arun Adhikari, Mr.P H Ravikumar, Mrs.Vijayalakshmi R Iyer, Mr.S C Bhargava, Mr.Romesh Sobti. Company has B S R & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 242 Crore shares outstanding.

Investment Rationale
Despite the higher growth in insurance businesses putting some strain on reported profit, the brokerage sees consolidated PAT clocking ~30% CAGR over FY22-25E to reach Rs33bn.

Promoter/FII Holdings
Promoters held 71.05 per cent stake in the company as of 31-Dec-2022, while FIIs owned 7.23 per cent, DIIs 7.99 per cent.