Sharekhan maintains ‘buy’ rating on Aditya Birla Nuvo

Aditya Birla Nuvo
cmp: Rs 1,310
target price: Rs 2,035

Brokerage firm Sharekhan maintained its ���buy��� rating on Aditya Birla Nuvo even though it feels that the firm may have overpaid for its acquisition of Apollo Sindhoori Capital investments.

���We believe ABN has paid substantial premium for the acquisition, considering the valuations at which the listed peers are trading and the bleak near-term outlook for the broking industry. Nevertheless, the acquisition provides ABN entry into broking business and may hold value in the long term,��� the Sharekhan note to clients said.

���We remain positive on ABN on account of its presence across diversified businesses. In the near term, the stock would have the trigger on account of the insurance bill that is expected to allow higher foreign direct investment in the sector,��� the note added.