Investec Securities initiates 'buy' on Aditya Birla Capital, target price Rs 135

Investec Securities has initiated coverage on Aditya Birla Capital with a buy rating and target price of Rs 135. The brokerage derives comfort from the company's a) strong risk management, b) low cost of funds, and c) professional management. Further, group synergies are significant and provide a strong platform to its subs on brand, distribution and risk, said Investec. Return on equity expansion in lending subsidiares is key to value creation over the medium term, with asset quality deterioration a notable risk, said Investec. Shares of Aditya Birla Capital ended down 3% at Rs 75.50 on Wednesday.